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GRIFFIN MINING (GFM)

Griffin Mining's track record in getting its Caijiaying zinc gold mine in China into production has won it admirers around the world. One of them, a US-based hedge fund, has just put £75m into Griffin to fund further growth.
August 31, 2007

It's only a coincidence according to Griffin Mining chairman Mladen Ninkov, but Citadel Investment Group, which has just put £75m into Griffin, was started by a guy called Ken Griffin. That kind of synchronicity sometimes tickles the market's fancy, especially in the resources sector where shares can be volatile for all kinds of reasons - plenty of which should not have any impact on valuation whatsoever. In the sector in which the phrase "strike it lucky" was coined, sentiment can sometimes play a bigger part than fact.

IC TIP: Buy
Tip style
Growth
Risk rating
Low
Timescale
Long Term
Bull points

Bear points

Current sentiment supports Griffin Mining in two important ways. The first is that Griffin is operating in China ... and China is all the rage. The second is that Griffin is selling base and precious metals in a buoyant commodities market. Those two elements go some way to explaining why Griffin has been one of the best all-time performers on Aim.

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