Ryanair looking good for investors

Sunday Telegraph

Since Ryanair cancelled a huge order for 200 new planes from Boeing last December, there have been expectations of a cash payout.

A special dividend was approved by 100 per cent of investors at last week's AGM. The payout is for 34 euro cents (28p) a share and it will be paid on October 1.

However, Mr O'Leary hinted that it was unlikely another dividend would be paid in the next few years, and the prospect of a purchase of new planes was on the agenda.

Analysts expect that the company's free cash flow will hit about 1 billion (850m) in the medium term.

Ryanair can be an easy target for critics, but it is an exceptionally run business that gives its customers what they want – cheap flights abroad. Despite the expected absence of a dividend for a few years, shares, currently at 3.8 euros (320p) a share, are a buy.

Mail on Sunday

Gold exploration company Red Rock Resources started by investing in other mining companies and now has sizeable holdings in two listed Australian businesses – iron ore and manganese producer Jupiter Mines and uranium group Resource Star.

But chairman Andrew Bell is moving Red Rock into gold and has acquired interests in two mines, one in Kenya, another in Colombia.

Colombia has seen a crackdown on crime and Bell has high hopes for Red Rock's mine there.The Kenyan mine also has significant potential and by the end of 2011 Red Rock intends to be producing substantial amounts of gold.

Analysts expect profits of 1.6m in 2010, rising to 1.8m next year and increasing steadily thereafter. Red Rock shares are 4.5p and analysts believe the shares are worth nearer 20p.

Another gold mining firm, Goldplat, run by mining veteran Demetri Manolis, takes wood chippings, old mills and other bits and pieces from other mining companies and extracts left-over gold from them.

In the year to June 2010 Goldplat made 1.9m, but profits are expected to hit 3m next year and more than 5m the year after as its mines start producing and its business in Ghana develops.

Goldplat stock is 10.8p and again analysts believe the shares are worth nearer 20p.