CAMBIOR INCORPORATED: 36% profit in 3 months!

We have decided to take a profit on Cambior Incorporated. The takeover by Iamgold Corporation has worked out nicely but we feel that there is now better value elsewhere.

From our research we can only conclude that our cash will do better if it were placed in Agnico-Eagle Mines Limited, Kinross Gold Corporation, Yamana Gold Incorporated or indeed a new face.

We are in no hurry to invest this money as gold is in ‘tease mode’. There are a few respected analysts out there who are sticking to their predictions of gold going to moon, etc, and we are in that camp. However there are also a few who have calculated that it is all over for gold! This synopsis we do not agree with, but it will serve to make investors nervous and some will run for door. We at gold prices did not see the last pull back as a selling opportunity, we saw it as part of the oscillations of a bull market that will produce ‘gut- wrenching’ down turns and shake a few off the tree.

For the time being we will hold and observe the economy in general and gold prices in particular, looking for those tell tale signs that give us all the clues we need before making any investment.

For the record we bought Cambior at $2.61 on 28 June 2006 and hope to sell at $3.56 on 25 September 2006 making a profit of 36%.

Please feel free to put your opinion into the pot and send us a few comments.

Go gently.

25 September 2006

Note: The following links to these gold mining websites may be useful:

Agnico-Eagle Mines Limited
Kinross Gold Corporation
Yamana Gold Incorporated
Cambior Incorporated
Iamgold Corporation