Miners HYP - Year 4

[minerjoe]

This year close represents the 4th year of actually running an investment strategy. Its been an OK year for me, with the outlier of Micro Focus dropping by 50%, however in share weighted terms this MRCO was only 3.5% of the total portfolio and so only affected me adversely by 1.5% of total value. A couple of shares continue to be out performers, notably CAML, AZN and BBA.

This year was also the first year I have unitised the HYP, allowing for me to better judge performance. I just managed to beat the market this year in Unit terms for the same period, with the FTSE ending at 97.7 and the HYP at 102. I am slightly behind where I wanted to be in terms of capital, however markets wax and wane. This drop doesn't concern me in the long term.



I added the maximum to my ISA this year an invested evenly into SMDS, WPP, BATS, ITV, AV.,BA. and ADM. Next year I plan to continue as I am now moving to the "top up" phase, however should an opportunity present itself then I have no qualms investing into a new share. I have also started a small HYP(ish) portfolio for BabyMiner which consists of the Vanguard 100 ACC and City of London Investment Trust (CTY). I wont report on this as its mainly a tracker but I will continue to add over the next 18+ years.

The total portfolio now consists of



Thoughts and comments always welcome.

[Spet0789]

I don’t run a HYP so can’t offer thoughts on the overall portfolio but I am an enthusiastic holder of CAML - a really well-run miner. As they have pretty much the lowest extraction costs in the industry I consider them to be a very safe resources play for TR/income investors.

I have just bought some MCRO (sub £10). Less successfully, I hold IMB (over £30)!

[idpickering]

Thanks for your report Miner. So far, so good. Among the usual suspects you have an interesting array of not so usual ones. The likes of BBA Aviation, Central Asia Metals, KCOM Group, Pay Point, RPS Group, and Wood Group, are all strangers to me. I may well bring WPP on board my HYP on Monday. Anyway, your HYP looks fine IMHO, and well done on beating the FTSE.

Ian.

[MDW1954]

Hello, Miner. CAML is not a name that crops up often on these boards. I've looked at it a couple of times, but I'm always put off by the finite nature of the supply of dump ore to leach.

Noting your user name ("MinerJoe"), I wonder if you have any additional insight to offer?

MDW1954

[minerjoe]

Hello, Miner. CAML is not a name that crops up often on these boards. I've looked at it a couple of times, but I'm always put off by the finite nature of the supply of dump ore to leach.

Noting your user name ("MinerJoe"), I wonder if you have any additional insight to offer?

MDW1954

I've had CAML for many years and commented here about them a few times. Their primary operation was in Kazakhstan and I believe still has 10+ years left before exhaustion. As you said heap leaches have a finite life, but their cash cost being sub $1per lb is Q1 in terms of the market and throws off cash. The recent purchase of the Zinc mine in Macadonia was a shrewd move in my view. Zinc is moving onto strategic undersupply and hopefully Nick and team can modernise production to maximize revenues.

I am quite happy with them as a company, bit junior miners are not everyone's cup of tea - not really a HYP share. I would assume they'll be bought up in a few years time by a mid-tier miners, or they'll continue to expand, who knows. Next time I see Nick, I'll ask him!

[monabri]

I'd be interested in your thoughts on BBA Aviation. With a current yield of less than 3% it doesn't fit readily into the HYP share mould. Is this a "contrarian buy" bought at a time of company stress with a view to future recovery?

[minerjoe]

I'd be interested in your thoughts on BBA Aviation. With a current yield of less than 3% it doesn't fit readily into the HYP share mould. Is this a "contrarian buy" bought at a time of company stress with a view to future recovery?

Bang on, I bought them at half the price with a 5+% yeild on the view they were oversold. So far, they haven't let me down

[Steveam]

I've held BBA for sometime and done well but they've taken quite a hiding recently. I know they're very sensitive to FX changes. I happen to have a little cash available and am wondering whether they'd be a good home.

Current yield about 3.7
Cap over £2bn
Price at 12 mnth low.

Best wishes,

Steve