25 May 2012

Palmaris Capital – Hold

15/11/2004

Big increases in resources and reserves claimed by Australian gold hopeful Perseverance Corporation for its Fosterville mine Down Under has brought renewed cheer for AIM-quoted Palmaris Capital, which has a 10.7% stake in Perseverance, whose shares have risen nearly 40% in the past six weeks.

That will have boosted net assets from the 15.1p a share reported at Palmaris' December half-year stage, when the company lost an interim £154,000. Palmaris owns 23%, with bid pre-emption rights, of private coal group Mining Scotland, which made £6m on £114m turnover last year and is now gaining from strong coal prices. Palmaris Services, the company's perhaps somewhat incongruous plant hire, guarding and security services arm, is making progress towards restored profitability. At 20.25p. Palmaris' shares are 70% up on our recommendation in October last year and have risen 40 per cent since being mentioned in the November issue of Growth Company Investor. Hold on.

Sector: Industrial Engineering

Companies: Palmaris Capital

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