ERM

It has been hovering just above my average buying price for a long time following a high plateau after I first bought into it. DH gave it a good write-up but he jettisoned the shares. Big mistake!

Here is why I bought: It has a gold processing plant worth more than its market cap just to replace the machinery. The gold in the tenement has a rich history but was not fully explored. When it announced what it had, it was disappointing so the market savaged it. But it hasn't fully explored yet! That is where the adage that the market is for the patient investors hold true. I believe Xstrata has a commitment to this stock, or at least another miner with a deeper pocket.

Suddenly it has exploded.

Please note that ERM's tenements are not that far from ABU and the latter has the biggest land tenements for exploring gold in Australia. And like ERM, ABU is also exploring in an area with historical high grade of Au and both have not fully explored their acreage yet.