Marengo Mining (ASX.MGO)

Marengo Mining is an Australian mineral exploration-development company developing a copper-gold project in PNG. This company has several advantages and disadvantages:
Advantages:
1. It is a very large project so it is an attractive leveraged investment into metal exposure.
2. This project is going to be a long life mine
3. The possibility of higher grade (gold?) zones which might allow higher earnings in the early years.

Disadvantages:
1. The project is a copper-molybdenum project. The gold content is nominal only unfortunately.
2. The project's commodity output will be hit by the rising interest rate environment in coming years - both in terms of its debt exposure and the impact on commodity prices. So its a pity there is little gold content.
3. The mine will not be producing until 2013, so looking at a long development lead time. This is what you expect from such a large project.

This stock will make good buying in 2012 I suggest, though of course one will need to look at the commodity prices at the time and interest rates to see if they are viable. In the long term it will be an attractive project. Certainly its a stock to watch, but I'd be looking for more gold, precious metal content. More info on this company at Marengo or see this presentation. Latest share price at Google Finance.
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Andrew Sheldon www.sheldonthinks.com

Clean Seas Tuna (CSS.ASX)
This is not a blue chip, but its not a miner either so there is no where else to put it, and a good investment is a good investment. The question here is timing. I refer investors to the latest announcement. Clean Seas Tuna (CSS) has successful hatched tuna on its land-based tuna hatcheries, which will enable it to farm the fish. The company is coming to terms with its balance sheet, it has new management and still has some work to do on its cost control. Nevertheless one can expect a company which has mastered the art of farming tuna, in a climate of diminishing natural fish stocks, growing people populations, increased regulation of fishing and increasing awareness of dietary issues to have a promising future. There is of course no better, no cleaner seas than the southern oceans to farm fish. One can therefore expect this company to have a bountiful future. I would thus encourage people to take an interest in this company. Time Magazine judged its 'farming of tuna' as the 2nd best innovation of 2009. I actually think it was first, but American pride demanded it was placed second. They are not as grounded as us Australians. :)
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Andrew Sheldon www.sheldonthinks.com