I received this over the weekend. DRD had been pointed out to me before, and I had been keeping one eye on it. I have not yet decided when, but I do believe I’ll be taking a position in it. You may well want to due a little diligence on it, and consider adding some to your own trading portfolio. I’m going to see where it stands in relation to all the other mining stocks in my database. I know it had been high, even on top for a while not very long ago. I’d actually been steering clear of it because of it being located in more volatile South Africa.

DRDGold Ltd. (ADR) (NYSE:DRD) is a South African-based gold miner and a world leader in surface gold tailings retreatment. Okay, so what does that mean?

Well, it takes sand dams and “slime” from older mining operations and reprocesses them with new technology that can recover far more gold (the tailings) from the mined waste. It’s similar to the new oil drilling technologies that can recover reserves from old wells that were impossible to retrieve with older technologies.

Since these operations are high volume and low risk, the margin on the gold is higher than average. They don’t have to maintain mines or employ scores of miners.

If you haven’t picked a gold stock for your portfolio yet, this would be a strong choice. Given the global economic mess we’re in, gold is only going up in value for many months to come. DRD is up a stunning 430% year-to-date and still has plenty of legs.”

A look in on metals Monday morning shows gold and silver to have both risen some overnight. They have been marking time somewhat in a price consolidation pattern. This is typically very bullish after a bull run up. At some point they will be breaking out, and the odds are typically very high that it will be to the upside. I’m guessing now that it won’t be until after summer, unless some incident precipitates a run into metals before summer’s end.

Here’s to your accumulation of real wealth!
Harold F Crowell


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