GIVEN the record-breaking performance of the Hang Seng Index, Sydney-based Delta Gold faced a daunting challenge attracting local investors during a recent two-day visit.
''It's a very tough sell,'' conceded the gold exploration and mining firm's executive director Robert Reynolds just before he headed off to a meeting in San Francisco.
''The only thing that can sell it is the gold market. One other factor is that Canada was the flavour of the week a year ago . . . and Australia has become or is becoming the flavour of the week in the exploration scene.'' Delta's cause has been helped as many American investors are now turning their sights to Australian gold stocks because they are seen as cheap compared with United States counters that have jumped due to strong interest from mutual funds.
Delta general manager of finance Fiona Robertson said about 10 to 15 per cent of the company's shares were held by institutional and retail investors in Asia.
Delta, which was listed on the Australian Stock Exchange in 1983, operates two large gold mines in Western Australia, Granny Smith and Kanowna Belle.
Granny Smith is a 40-60 joint venture with Placer Pacific, a division of Canadian mining giant Placer Dome, while Kanowna Belle, which will start production later this year, is a joint venture with Peko Gold.
Ms Robertson said the company's active hedging programme allowed it to benefit from any increase in gold prices while providing it with enough insurance to underpin the company's solvency.
