Resource Sector

African diamonds

With a market capitalisation of P915m African diamonds is an important stock to keep a close eye on . Although the share price of African diamonds has been sliding downwards its an equity set to recover and is a long term equityto buy. The global demands for diamonds is not expected to decline in the near future particularly as other diamond mines in Africa are under great scrutiny as sources of conflict money. Diamonds are a critical resource for the Botswana economy and are professionally managed and protected by the government in general.

Chilanga cement

Zambian economy has outperformed a number of critics in the past two years fuelled by increased copper prices, steady rise in tourism and introduction of tobacco growing. All these factors are a necessary impetus to infrastructure development. Chilanga cement is strategically positioned to take advantage of this economic upsurge. With minimal competition Chilanga almost enjoys a monopolistic position in the Zambian market and increased demand in infrastructural development. Chilanga stock performance in the past 8 months has been sterling moving from K3000 in January to as high as K6000 in October 2007. Chilanga is significantly capitalised and has recorded healthy profits in the past 4 years

KenGen

Kenya Electricity Generating Company Limited, KenGen is the leading electric power generation company in Kenya, producing about 80 percent of electricity consumed in the country. The company utilises various sources to generate electricity ranging from hydro, geothermal, thermal and wind. Hydro is the leading source, with an installed capacity of 677.3MW, which is 72.3 per cent. A very interesting equity which is a by product of Kenyan government liberalisation programme which saw a full commercialisation of a state run national electricity company. The IPO issue of KenGen generated a great deal of interest in the Kenyan market. This excitement has since subsided however the tremendous demand for power in Kenya due to high speed of urbanisation and economic growth will see an increase in demand for power. Increased professional management and streamlining of company operations including expansion of power generating facilities will see growth in demand and better collections through introduction of proper metering systems. A market capitalisation of KSH 57 billion and a price of K26 leaves KenGen shares with a lot of room to rise back to the K50 mark in the near future and even cross the KSH100 mark in the medium to long term period

Chevron NG

Nigeria is the 10h largest producer of oil and for the next 10 years Nigeria is likely to consolidate its position as an oil giant especially with current initiatives to deal with political crisis in the Delta region being initiated by the new government. Chevron's net average daily production crude oil was about 137,000 barrels in 2006. Chevron recorded Nigeria's first offshore discoveries in 1963 - the Koluama and Okan fields. The company started Nigeria's first major project to gather and process natural gas - the Escravos Gas Project 1 - in 1997. In 1998, the company discovered Nigeria's largest-ever deepwater discovery, the Agbami Field. Maximum total daily production of 250,000 barrels of crude oil and natural gas liquids is expected in 2009. Construction began in 2006 on the .7 billion Escravos gas-to-liquids (GTL) plant, designed to produce 34,000 barrels of clean fuels per day and to process 300 million cubic feet of natural gas per day. With about 380 Texaco-branded service stations, Chevron is a major contributor to Nigeria's petroleum marketing industry. A leading producer of quality lubricating oils and greases, the company owns a blending plant at Apapa, Lagos

Mobile NG

Nigeria has a population of over 110 million people and an abundance of natural resources, especially hydrocarbons. It is the 10th largest oil producer in the world, the third largest in Africa and the most prolific oil producer in Sub-Saharan Africa. The Nigerian economy is largely dependent on its oil sector which supplies 95% of its foreign exchange earnings.. In January 2005 Oil and Gas Journal estimated that Nigeria contains 176 trillion cubic feet (Tcf) of proven natural gas reserves mainly from onshore fields and the swampy areas of the Niger River Delta. Due, mainly, to the lack of a gas infrastructure, 75% of associated gas is flared and 12% re-injected. Nigeria has set a target of zero flare by 2010 and is providing incentives for the production and use of gas. The government also plans to raise earnings from natural gas exports to 50 percent of oil revenues by 2010.