"I would be grateful if you could give your current thoughts on Geiger Counter Ltd, very much in vogue of course before Fukushima. I understand they do have some interest in Gold."

David Fuller's view Thank you for this email which may be of interest to some other subscribers.

Unfortunately, Geiger Counter (GCL) has been a disaster, mainly because of Fukushima but the manager, John Wong, has not helped with his big speculation in Ausgold. I wrote to him back in January and you may have seen this reply from Adam Cooke at GCL, saying that Ausgold may have "Australia's largest gold discovery for 20 years." The market appears to disagree and Ausgold has been an underperformer in a weak sector, showing no recovery to date, despite bullion's recent rally.


Consequently, Ausgold has slipped from being GCL's top holding to 5th position. GCL's uranium shares, now headed by Cameco and Uranium One, show evidence of base formation development but this process may be lengthy. GCL currently trades at a discount to NAV of 21%, according to Bloomberg. At today's low valuation, I regard GCL as a call option on the prospect of an eventual recovery by uranium miners. However, GCL's market cap has shrunk to £21 million so its survival is not assured.