News

May 20, 2009

Giralia Prefers To Take Profits On Its Assets Rather Than Mine Them.

Our Man In Oz

Everyone has their own way of spotting spring. Daffodils in Hyde Park is a London favourite. In Australia, where the seasons are upside down, there is a useful London connection for spotting “financial” spring – stockbrokers making early morning ‘phone calls from the tube to Aussie mining companies. Over the past few weeks Mike Joyce, chief executive of Perth-based Giralia Resources, has been receiving a regular burst of calls from London brokers on their way to work, keen for the latest news from the field. The result is obvious on the stock market where Giralia shares have more than doubled from A29 cents to around A66 cents over the past three months as fear of a global financial collapse has been replaced by fear of missing the return leg of the China-driven resources boom.

Sometimes overlooked because of its preference for pure exploration over mining, Giralia has been one of the most efficient value generators on the Australian market over the past 20 years. In the opening leg of the boom Giralia was a prolific sponsor of spin-off floats, giving the investment community a raft of separate uranium, iron ore, zinc, tungsten and gold exploration companies. That business approach, which has confused some outside observers, is simplicity itself. It starts with...