May 21, 2012 -- Updated June 24, 2011 06:04 HKT
The Hot List AA, RYQG, VGCP, AU
What’s Hot AA, RYQG, VGCP, AU After the monster sell of over the last few weeks it is time to buy AngloGold Ashanti Limited (ADR) NYSE:AU, Royal Quantum Group, Inc. PINK:RYQG, Arizona Gold and Onyx Mining Co PINK:VGCP, Alcoa Inc. NYSE:AA
Looking for a recovery in gold and energy prices over the next 30 days and AA, RYQG, VGCP, AU look like bargains.
Alcoa Inc. NYSE:AA
Alcoa Inc. (Alcoa) is engaged in the production and management of aluminum, fabricated aluminum, and alumina combined, through its participation in mining, refining, smelting, fabricating, and recycling. During the year ended December 31, 2010, aluminum and alumina represent more than 80% of Alcoa’s revenues. Non-aluminum products include precision castings and aerospace and industrial fasteners. Alcoa’s products are used globally in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defense, and industrial applications. Alcoa is a global company operating in 31 countries. In addition, Alcoa has investments and operating activities in Australia, Brazil, the People’s Republic of China, Guinea, Iceland, Russia, and Saudi Arabia. Alcoa operates in four segments: Alumina, Primary Metals, Flat-Rolled Products, and Engineered Products and Solutions. During 2010, the Company completed the acquisition of Three Rivers Aluminum Company doing business as Traco. In July 2010, the Company completed the sale of its Transportation Products Europe business.
Alumina
The Alumina segment consists of Alcoa’s global alumina system, including the mining of bauxite, which is refined into alumina. Alumina is sold directly to internal and external smelter customers globally or is sold to customers who process it into industrial chemical products. A portion of this segment’s third-party sales are completed through the use of agents, alumina traders, and distributors. During 2010, slightly more than half of Alcoa’s alumina production is sold under supply contracts to third parties globally, while the remainder is used internally. During 2010, Alcoa consumed 38.3 million metric tons of bauxite from Alcoa World Alumina and Chemicals (AWAC) and its owned resources, 6.8 million metric tons from related third parties and 1.7 million metric tons from unrelated third parties.
Primary Metals
The Primary Metals segment consists of Alcoa’s global smelter system. Primary Metals receives alumina, from the Alumina segment, and produces aluminum used by Alcoa’s fabricating businesses, as well as sold to external customers, aluminum traders, and commodity markets. The sale of aluminum powder, scrap, and excess power are also included in this segment, as well as the results of aluminum derivative contracts and buy/resell activity. Primary aluminum produced by Alcoa and used internally is transferred to other segments. During 2010, the sale of primary aluminum represents more than 90% of this segment’s third-party sales. As of December 31, 2010, Alcoa had 878 kilo-metric tons of idle capacity on a base capacity of 4,518 kilo-metric tons.
Flat-Rolled Products
The Flat-Rolled Products segment’s business is the production and sale of aluminum plate and sheet. This segment includes rigid container sheet (RCS), which is sold directly to customers in the packaging and consumer market and is used to produce aluminum beverage cans. It also includes sheet and plate used in the aerospace, commercial transportation, building and construction, and distribution markets, which is sold to customers and through distributors. During 2010, approximately 50% of the third-party sales in this segment consist of RCS.
Engineered Products and Solutions
The Engineered Products and Solutions segment includes titanium, aluminum, and super alloy investment castings; forgings and fasteners; aluminum wheels; integrated aluminum structural systems; and architectural extrusions used in the aerospace, automotive, building and construction, commercial transportation, and power generation markets. These products are sold to customers and through distributors. In addition, hard alloy extrusions products, which are also sold to customers and through distributors, serve the distribution, aerospace, automotive, and commercial transportation markets. Traco is a manufacturer of windows and doors for the commercial building and construction market.
Valuation Ratios
| Company | Industry | Sector | S&P 500 | |
|---|---|---|---|---|
| P/E Ratio (TTM) | 25.07 | 20.00 | 23.96 | 17.17 |
| P/E High – Last 5 Yrs. | 60.19 | 43.82 | 85.47 | 96.33 |
| P/E Low – Last 5 Yrs. | 11.30 | 5.97 | 25.18 | 12.50 |
| Beta | 2.07 | 1.37 | 1.22 | 1.28 |
| Price to Sales (TTM) | 0.83 | 10.72 | 2.49 | 2.24 |
| Price to Book (MRQ) | 1.24 | 0.13 | 2.80 | 4.09 |
| Price to Tangible Book (MRQ) | 1.94 | 0.15 | 2.91 | 4.84 |
| Price to Cash Flow (TTM) | 7.63 | 19.42 | 21.15 | 9.30 |
| Price to Free Cash Flow (TTM) | 25.99 | 2.45 | 26.19 | 59.11 |
| % Owned Institutions | – | – | – | – |
Dividends
| Company | Industry | Sector | S&P 500 | |
|---|---|---|---|---|
| Dividend Yield | 0.70 | 0.77 | 1.00 | 1.79 |
| Dividend Yield – 5 Year Avg. | 2.14 | 1.42 | 1.44 | 2.48 |
| Dividend 5 Year Growth Rate | -27.52 | -6.77 | 16.88 | -4.07 |
| Payout Ratio(TTM) | 16.27 | 12.24 | 14.75 | 26.47 |
Growth Rates
| Company | Industry | Sector | S&P 500 | |
|---|---|---|---|---|
| Sales (MRQ) vs Qtr. 1 Yr. Ago | 21.92 | 26.15 | 42.32 | 7.55 |
| Sales (TTM) vs TTM 1 Yr. Ago | 15.15 | 28.48 | 21.36 | 9.74 |
| Sales – 5 Yr. Growth Rate | -3.85 | 25.61 | 13.52 | 7.50 |
| EPS (MRQ) vs Qtr. 1 Yr. Ago | 241.18 | 126.05 | 88.40 | 44.01 |
| EPS (TTM) vs TTM 1 Yr. Ago | 195.77 | – | – | – |
| EPS – 5 Yr. Growth Rate | -29.14 | 4.00 | 24.73 | 4.88 |
| Capital Spending – 5 Yr. Growth Rate | -13.66 | 21.32 | 16.31 | 3.53 |
AngloGold Ashanti Limited (ADR) NYSE:AU
AngloGold Ashanti Limited (AngloGold Ashanti), incorporated in 1944, is a global producer of gold. AngloGold Ashanti has 21 operations and a number of exploration programs in gold-producing regions of the world. As of December 31, 2009, AngloGold Ashanti’s ore reserve totaled 71.4 million ounces. During the year ended December 31, 2009, the Company produced 4.6 million ounces of gold from its operations. AngloGold Ashanti’s main product is gold. Revenue is also derived from the sales of silver, uranium oxide and sulphuric acid. The Company sells its products on international markets. On January 28, 2009, the Company sold 33% interest in Boddington joint venture to Newmont. On February 17, 2009, it sold Tau Lekoa to Simmer & Jack. On October 5, 2009, the Company formed a joint venture with formed with De Beers in marine exploration and mining. On December 22, 2009, it acquired additional 10% interest in Kibali gold project.
South Africa
AngloGold Ashanti’s South African operations comprise seven deep-level mines and one surface operation. They are Great Noligwa, Kopanang, Tau Lekoa, Moab Khotsong and the surface operation, which make up the Vaal River region, and Mponeng, Savuka and TauTona, which make up the West Wits region. During 2009, gold production for South Africa totalled 55,908 kilograms. The major projects being undertaken in South Africa are Mponeng Carbon Leader Reef project and Moab Zaaiplaats project. Its Great Noligwa, Kopanang, Moab Khotsong and Tau Lekoa mines are situated near the towns of Klerksdorp and Orkney on the border of North West Province and the Free State. The Vaal River operations have among them four gold plants, one uranium plant and one sulphuric acid plant. The Great Noligwa mining operation consists of a twin-shaft system and operates over eight main levels at an average depth of 2,400 meters below surface. Kopanang adjoins Great Noligwa and is located close to the town of Orkney on the Free State side of the Vaal River. The major reef mined at Kopanang is the Vaal Reef, while the secondary Crystalkop Reef is mined on a smaller scale. Mining operations are conducted at depths ranging from 1,280 meters to 2,240 meters. Moab Khotsong is located south and south-east of Great Noligwa and Kopanang in the Free State province. The Tau Lekoa operation consists of a twin-shaft system. The resources of AngloGold Ashanti South Africa’s surface operation include the waste rock dumps and tailings storage facilities.
The Mponeng, Savuka and TauTona mines are situated on the West Wits Line, near the town of Merafong, straddling the border of Gauteng and North West Province. Mponeng has its own gold processing plant, while the Savuka and TauTona operations share a plant. Savuka is situated on the West Wits line in the province of Gauteng, approximately 70 kilomters southwest of Johannesburg, and lies close to the town of Merafong in North West Province. This operation extracts both the Carbon Leader Reef (CLR) at between 3,137 meters and 3,457 meters below surface and the Ventersdorp Contact Reef (VCR) at 1,808 meters below surface. TauTona lies on the West Wits line, just south of Merafong in North West Province and about 70 kilometes southwest of Johannesburg. Mining at TauTona takes place at depths ranging from 1,850 meters to 3,450 meters. The mine has a three-shaft system and is in the process of converting from longwall mining to scattered grid mining. TauTona consists of a main shaft system supported by secondary and tertiary shafts.
Namibia
AngloGold Ashanti has one mining operation in Namibia, Navachab. During 2009, it produced 65,000 ounces of gold. Navachab Gold Mine is situated near the town of Karibib, some 170 kilometers northwest of the capital Windhoek, and 171 kilometers inland on the southwest coast of Africa. Navachab is an open-pit mine with a processing plant, which includes mills, carbon-in-pulp and electro-winning facilities.
Ghana
The Iduapriem mine, wholly owned by AngloGold Ashanti consists of the Iduapriem and Teberebie properties. The Iduapriem mine is situated in the western region of Ghana, some 70km north of the coastal city of Takoradi and 10 kilometers southwest of Tarkwa. Iduapriem is an open-pit mine and its processing facilities include a carbon-in-pulp (CIP) plant. Obuasi, wholly owned by AngloGold Ashanti, is located in the Ashanti region of southern Ghana, approximately 60 kilometers south of Kumasi. It is primarily an underground mine, operating at depths of up to 1,500 meters.
Guinea
AngloGold Ashanti has an 85% interest in Siguiri, with the government of Guinea holding a 15% stake. The Siguiri mine is a conventional open-pit operation situated in the Siguiri district in the northeast of the Republic of Guinea, West Africa, about 850 kilometers from the capital city of Conakry.
Mali
The Morila mine is situated some 180 kilometers southeast of Bamako, the capital of Mali. Sadiola is located in the far southwest of the country of Mali, 77 kilometers to the south of the regional capital, Kayes. The Yatela mine is situated some 25km north of Sadiola and approximately 50 kilometers south-southwest of Kayes. Yatela is 80% owned by the Sadiola Exploration Company Limited, a joint venture in which AngloGold Ashanti and IAMGOLD each have an interest of 50%, giving AngloGold Ashanti an effective stake of 40% in Yatela.
Tanzania
The Geita gold mine is located in the Lake Victoria goldfields of the Mwanza region of Tanzania, about 120 kilometers from Mwanza and four kilometers west of Geita Town. The mine is wholly owned and managed by AngloGold Ashanti. The Geita gold deposit is an Archaean mesothermal orebody, hosted in a banded ironstone formation. It is a multiple openpit operation with underground potential and is currently serviced by a 5.2 metric ton per annum carbon-in-leach (CIL) processing plant.
Australasia
AngloGold Ashanti’s sole operating asset in Australasia is Sunrise Dam. Tropicana is managed by AngloGold Ashanti and covers 13,500 square kilometers of tenements. Exploration in the Australasia region is also being conducted in the Philippines and the Solomon Islands. During 2009, the Australasian operation produced 401,000 ounces of gold.
Australia
The Sunrise Dam gold mine is located in the northern goldfields of Western Australia, 220 kilomters northeast of Kalgoorlie and 55 kilometers south of Laverton. The mine consists of a large open pit which is now in its thirteenth year of operation, and an underground mine. The Tropicana joint venture comprises more than 13,500 square kilometers of tenements along more than 300 kilometers of the ancient collision zone between the Yilgarn Craton and the Albany Fraser Province in Western Australia. The Tropicana Gold Project is located 330 kilometers east-northeast of Kalgoorlie within the northern part of the joint venture area. AngloGold Ashanti holds a 70% interest in the Tropicana joint venture with Independence Group NL 30%.
United States
Cripple Creek & Victor (CC&V) is located in the State of Colorado in the United States, CC&V’s Cresson mine is an open-pit operation. AngloGold Ashanti holds a 100% interest in CC&V. AngloGold Ashanti has three operations in South America – Cerro Vanguardia in Argentina, and AngloGold Ashanti Brasil Mineração (Brasil Mineracao) and Serra Grande in Brazil.
Argentina
AngloGold Ashanti has a 92.5% interest in Cerro Vanguardia and Fomicruz (the province of Santa Cruz), owns the remaining 7.5%. Located to the northwest of Puerto San Julian in the province of Santa Cruz, Cerro Vanguardia currently consists of multiple, small, open pits with high stripping ratios. The orebodies consists of a series of hydrothermal-vein deposits containing gold and large quantities of silver, which is produced as a by-product.
Brazil
The wholly owned Brasil Mineracao mining complex is located in southeastern Brazil in the state of Minas Gerais, close to the city of Belo Horizonte, in the municipalities of Nova Lima, Sabara and Santa Bsrbara. Serra Grande is located in central Brazil, in the state of Goiás, 5km from the city of Crixás. AngloGold Ashanti and Kinross Gold Corporation are equal partners in this operation.
Valuation Ratios
| Company | Industry | Sector | S&P 500 | |
|---|---|---|---|---|
| P/E Ratio (TTM) | 234.72 | 60.86 | 23.96 | 17.17 |
| P/E High – Last 5 Yrs. | 241.90 | 100.80 | 85.47 | 96.33 |
| P/E Low – Last 5 Yrs. | 241.90 | 41.26 | 25.18 | 12.50 |
| Beta | 0.63 | 0.91 | 1.22 | 1.28 |
| Price to Sales (TTM) | 3.31 | 59.49 | 2.49 | 2.24 |
| Price to Book (MRQ) | 4.37 | 3.04 | 2.80 | 4.09 |
| Price to Tangible Book (MRQ) | 4.65 | 3.37 | 2.91 | 4.84 |
| Price to Cash Flow (TTM) | 21.50 | 15.82 | 21.15 | 9.30 |
| Price to Free Cash Flow (TTM) | – | 65.18 | 26.19 | 59.11 |
| % Owned Institutions | – | – | – | – |
Dividends
| Company | Industry | Sector | S&P 500 | |
|---|---|---|---|---|
| Dividend Yield | 0.44 | 0.93 | 1.00 | 1.79 |
| Dividend Yield – 5 Year Avg. | 0.61 | 1.58 | 1.44 | 2.48 |
| Dividend 5 Year Growth Rate | -20.31 | -0.45 | 16.88 | -4.07 |
| Payout Ratio(TTM) | 88.16 | 31.88 | 14.75 | 26.47 |
Growth Rates
| Company | Industry | Sector | S&P 500 | |
|---|---|---|---|---|
| Sales (MRQ) vs Qtr. 1 Yr. Ago | 24.84 | 4,069.31 | 42.32 | 7.55 |
| Sales (TTM) vs TTM 1 Yr. Ago | 41.56 | 50.28 | 21.36 | 9.74 |
| Sales – 5 Yr. Growth Rate | 16.51 | 21.71 | 13.52 | 7.50 |
| EPS (MRQ) vs Qtr. 1 Yr. Ago | -87.47 | 1,436.26 | 88.40 | 44.01 |
| EPS (TTM) vs TTM 1 Yr. Ago | 121.51 | – | – | – |
| EPS – 5 Yr. Growth Rate | – | 7.71 | 24.73 | 4.88 |
| Capital Spending – 5 Yr. Growth Rate | 6.51 | 22.14 | 16.31 | 3.53 |
Royal Quantum Group, Inc. PINK:RYQG
Royal Quantum Group Inc., incorporated on October 22, 1996, is a development-stage company. The Company is engaged in the acquisition, exploration and development of oil and gas and mineral properties. During the year ended December 31, 2009, the Company acquired a 36% interest in the drilling and development of the Gleason 4-16 well located in Oklahoma.
The Company owns 100% interest in 1,540 acres that consist of 77 claims of prospective uranium property. The prospective uranium property is located adjacent to the Sheep Mountain Mine in Fremont County, Central Wyoming, approximately 90 miles southwest of Casper, Wyoming.
Profitability Ratios
| Company | Industry | Sector | S&P 500 | |
|---|---|---|---|---|
| Gross Margin (TTM) | 65.84 | 48.46 | 23.21 | 32.55 |
| Gross Margin – 5 Yr. Avg. | 67.60 | 43.82 | 28.96 | 30.63 |
| EBITD Margin (TTM) | -26.42 | – | – | – |
| EBITD – 5 Yr. Avg | -353.53 | 27.13 | 20.04 | 19.23 |
| Operating Margin (TTM) | -47.39 | -4.17 | 1.73 | – |
| Operating Margin – 5 Yr. Avg. | -373.68 | 22.29 | 14.79 | 14.81 |
| Pre-Tax Margin (TTM) | -56.44 | -2.01 | 2.61 | 15.67 |
| Pre-Tax Margin – 5 Yr. Avg. | -528.85 | 24.15 | 15.95 | 14.36 |
| Net Profit Margin (TTM) | -56.44 | 13.23 | 3.89 | 11.60 |
| Net Profit Margin – 5 Yr. Avg. | -528.85 | 11.86 | 10.48 | 10.60 |
| Effective Tax Rate (TTM) | – | 18.35 | 15.77 | 21.83 |
| Effecitve Tax Rate – 5 Yr. Avg. | – | 32.04 | 24.65 | 24.85 |
Arizona Gold and Onyx Mining Co PINK:VGCP
With Gold trading over $1500 an Oz Arizona Gold and Onyx Mining Co PINK:VGCP is enthusiastic that its Mayer mining project in Arizona represents excellent potential and a compelling opportunity for profitable minerals production during the new global paradigm of the 20th Century in which mineral commodities are the foundation for economic growth. AGO has signed a contract with PMT Mining & Milling – Custom Mine Management & Operational Outsourcing outlining a comprehensive, 2-stage work program planned for the Company’s Mayer Project.
Project Location
The Company’s mineral claim is ideally situated in the heart of the country’s leading mining state of Arizona, in Yavapai County. The Property lies in close proximity to highways, power lines, and other infrastructure conducive to economic mining operations. Ample skilled mining and labor personnel live in the town of Mayer and in other nearby communities. The following two maps illustrate the property’s location in the heart of one of Arizona’s primary mining regions.
Maps of Arizona
The maps below will orient the reader to the location of the Company’s property and will also illustrate the prolific mineral-bearing nature of Arizona, the nation’s wealthiest state in terms of metallic mineral production.
Yavapai County (in beige) where Arizona Gold and Onyx property is located.

The following map displays all historical mining areas of Arizona, illustrating the concentration of mining activity and mineral discoveries (Gold, Copper, Silver, Lead, etc.) in Yavapai County:

Future Projects and Acquisitions
With a view to achieving future expansion of operations and overall corporate growth, Arizona is actively exploring the potential acquisition, through its considerable network within the Minerals Exploration & Development industry, of additional high-potential mineral projects. The potential acquisition in the near term of additional lots, mineral rights and mining rights in Arizona, Nevada and Montana in the United States, as well as in neighboring Canada, are currently being pursued.
Against a strong background for long term global minerals demand and historically high prices, and in light of AGO’s established network within the industry, the Company intends to aggressively pursue opportunities for growth that it identifies as offering extraordinary potential. Any such potential acquisitions will be guided by strict adherence to the requirements of geological attractiveness, proximity to mining infrastructure and perceived development potential.
Shayne Heffernan
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.
For More Information Contact
Chutinush Taksinapinunt (ANISTA)
Business Development Director
Heffernan Capital Management
Join the HCM Sophisticated Investor List
Suite 53 Athenee Tower 63 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 THAILAND
Tel: +66 2 126 8045
Fax: +66 2 126 8080
Mobile: +66 8 5997 0635
Email : info@heffcap.com
New York
347 5th Avenue, Suite 1402-508 NY, NY 10016
Tel: +1 646-403-9881
Fax: +1 646-403-8014
Singapore
3 Raffles Place #07-01 Bharat Building Singapore 048617
Tel: +65 6329 6408
Fax: +65 6329 9699
Get the Updates Daily
Your use of any of the Websites or any of the Services (defined below) constitutes your agreement to be bound by and comply with the Website Terms and Conditions and your consent to the collection, use and disclosure of personal information as described in the Privacy Policy. If you do not so agree and consent, you are not authorized to visit or use our Websites or the Services.
Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment. You must also accept that opinions on stock markets change minute to minute, opinions expressed my change at any time without warning. Opinions maybe influenced by ad sales and other financial consideration. This site does not offer any assistance in making financial decisions.
Read the Terms of Service
Investor Services
Most (71 per cent) Boomers can’t wait to spend their time as they wish in retirement, but four-in-10 (42 per cent) of those not-yet-retired expect managing cash …
Don’t give up on Gold yet Economist Shayne Heffernan said in a note to traders today, he added that Gold may still reach $2000 in 2013.
Central banks …
iShares MSCI Malaysia Index Fund (EWM), iShares MSCI Indonesia Investable Market Index Fund (EIDO), iShares MSCI Singapore Index Fund (EWS), Market Vectors Indonesia Index ETF (IDX), iShares …
The Hot List
Sky Power Solutions Corp (OTC:SPOW), INDOCAN RESOURCES INC (PINK:IDCN), JP Morgan Chase (NYSE:JPM)
Sky Power Solutions Corp (OTC:SPOW)
Looks way oversold this morning, there has been what appears to …

















