Hambledon Mining

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08/02/2011 Robert Tyerman

Kazakhstan-focused Hambledon Mining (HMB) is expanding underground extraction from its Sekisovskoye gold mine, with a 65,000 oz annual target for 2014.

Steered by chief executive officer Tim Daffern, the London-based AIM counter says it will reconfigure the mine’s layout and use more miners and machinery in its drive to reach this gold production target, which it aims to increase to 110,000 oz in 2016.

Output has been rising steadily for Hambledon, which produced 20,050 oz of gold at a low grade of 1.15 grammes of gold per tonne of ore and 46,050 oz of silver in 2009. In the three months to December, the company produced 6,491 oz of gold and 13,562 oz of silver.

This progress helped slash losses from £1m to £179,000 in the first half of last year. Analysts reckon that Hambledon could make more than £11m pre-tax this year, with £22m or more on the cards for 2012.
Recommended by Growth Company Investor at 5.25p last June, Hambledon shares now change hands at 7.63p. There should be more mileage here.

Tags: AIM market, Gold and silver, Increased production, Penny shares

Sector: Mining

Companies: Hambledon Mining

Market cap: £39.3m

PE Forecast: 4.7

Share price: 7.63p