A quick comparison between the Fronteer Development Group (FRG) and the XAU (The Gold and Silver Index – Philadelphia) reveals a startling difference in performance.

The individual charts that follow below clearly show that the XAU has not really made any progress in twelve months. It was around 140 twelve months ago and it is still around 140 today, whereas FRG has put in a lions performance.

We know that FRG is both a gold and uranium play but does the uranium element of this stock make such a big difference? Could be, on the other hand maybe FRG is perceived by the market to be one of the best-managed companies in the precious metals sector.

We admit that this is not a like for like comparison, as we do not have a uranium stocks index with which to make a comparison. However it does indicate that even in a precious metals Bull Market you need to choose carefully where you place your hard earned cash.

The Fronteer Development Group trades as FRG on the Toronto Exchange and on the AMEX Exchange.

08 February 2007