PLEASE, do not take anything you see here as a reason to buy, they are my thoughts, and you should come to your own decisions.

Randgold Reserves (RRS)
Click here for realtime chart

As we all should know, right now it seems all forms of mining stock are the "darlings of the moment". Its almost like the dot-com companies in 1999,2000, everybody wants to be in on mining stocks. Why is this? Well, from what i gather its all to do with the weakening of the dollar (simplified i know). As the almighty dollar plummets, then other less volatile forms of currency begin to look more and more attractive. And so in steps GOLD, or SILVER, PLATINUM, COPPER etc etc.

So here is a Gold mining company, listed here in London on the Footsie 250 that was brought to my attention by another website reader, (see the system is working).

BACKGROUND ON RANDGOLD RESOURCES:

Randgold Resources is an international gold mining and exploration business focused in Africa, incorporated in the Channel Islands in 1995 and listed on the London Stock Exchange in 1997 and Nasdaq in 2002.
On 22 September 2003, Randgold Resources was accepted as a member of the FTSE 250 Index.
It has to date discovered the 7 million ounce Morila deposit in southern Mali, the plus 2 million ounce Yalea deposit in western Mali and the 3 million ounce Tongon deposit in Cote d'Ivoire.
The Company successfully developed the Morila deposit into one of the world's largest and highest-margin gold mines, which since it commenced production in October 2000 has produced just over 2.5 million ounces at a total cash cost of approximately US$90 per ounce. The Company has commenced the development of a new mine at Loulo, with the open-pit operation scheduled to commence in July 2005. Feasibility study work on the underground potential to extend the life of the operation is continuing.
Randgold Resources has a prefeasibility project at Tongon in Cote d'Ivoire and a portfolio of prospective exploration projects in Mali, Cote d'Ivoire, Senegal and Tanzania.
Full information on the company is available on the website at www.randgoldresources.com


So........ what am i thinking?
Basically over the last few trading months the share price has dropped to the the same levels as its year low, so not a great sign eh!
I have been watching closely after the tip from a regular visitor, and was not really interested to be honest as it was trending down, and i didnt know enought about it to short.
But on April 1st it released a statement saying it had re-estimated its reserves in one of its mines, and as a result on April 2nd the stock leaped well over its trendline, as well as all recent resistance levels, and as far as i can tell RSI, MACD and even stochastics indicators are all showing buy signals. (see chart).

As Gold as a hedge against falling currencies continues to be in favour (and certain analysts say gold itself can reach $500 an ounce before year end) then obviously this is great news for any gold stocks.

So, as far as i can tell, the chart is now (3/4/04) showing a completion of the right shoulder of an inverted head and shoulder pattern, and should rise over the coming weeks.
Interim results are expected 28th April, which should be favourable also which is all good news.

Today (2/4/04)i placed a small spreadbet on Randgold to raise. Stop set at 1010, target 1300.