News

November 26, 2008

Peter Hambro’s Counter-Offensive Sends HSBC Packing, But Not Before Some Serious Collateral Damage Was Inflicted

By Alastair Ford

Interesting that HSBC should see fit to publish a 25 page note on Peter Hambro Mining on 21st November, less than two weeks after the publication of a fairly comprehensive initial analysis of the state of play at this, one of Britain and Russia’s premier mid-cap gold producers. Interesting, that is, for completely impartial market observers. For everyone else involved with Peter Hambro Mining, the only possible way to describe the “interesting” aspect of HSBC’s decision to venture forth its dubious opinions to market would be in terms of the famous Chinese curse. Yes, we certainly do live in interesting times.

And global times too. Times when research out of New York can have a disproportionate effect on a company like Peter Hambro, which has a primary listing in London, operations in Russia, and which sells product into a global market. That global interconnectedness can be, and has been, a boon in bull markets – Peter Hambro equity has been popular with Americans, and American money has been popular with London’s miners. That virtuous circle has in the past spilled positive sentiment in all...