Kazak miner Hambledon Mining has been a solid performer since I tipped the shares here in April last year. Then 12.75p, they have since been up to 22.5p. Last week, the company provided an update on its two projects – the Sekisovskoye gold mine and the Ognevka gold/silver/copper/iron treatment plant. It also announced a £4 million placing at 17.75p to replace a credit line promised locally but which has failed to materialise. That was on a day of turmoil for the market and the shares have since come back to 17.5p.

As for the two projects, Sekisovskoye has suffered some equipment delays but should produce its first gold bar by Kazak independence day, 16 December. Test work at Ognevka appears to confirm Hambledon’s best hopes for metal recoveries and demonstrates what a brilliant acquisition the plant was. Production should commence early next month.

You should not be panicked into jumping clear yet. Even after the placing, Hambledon is capitalised at only £78 million. For a business that should shortly be producing gold at the rate of 40,000 ounces a year – hopefully rising to 100,000 over time – that is small potatoes.

Hambledon Mining	AIM	£18.77m	4.00p	0.00p
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Other company articles:
Output rises at Hambledon			12/08/2008
Kazakh progress for Hambledon			07/07/2008
Hambledon output restart			01/05/2008
Hambledon becomes a producer			30/11/2007
Hambledon – good news, bad news			23/11/2007