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Investors' appetite for mining shares remains keen, at least for the majors and those with proven track records. So does the appetite of mining companies for investors' cash.

Gold and zinc miner Oxus is planning a pre-placing before its Aim float, while infrastructure concern PPI contemplates a second issue. Platinum's popularity is enhancing the appeal of Anglo American and Lonmin, while gold hopeful Coronation plans its move from Ofex to Aim.

Oxus Resources, the Canadian-based gold and zinc miner whose plan to tap Aim investors for £20 million was mentioned here at the end of June, has developed cold feet about raising it all at once. Instead, Oxus boss Roger Turner and his colleagues have chosen to go for a £1 million-plus pre-placing first.

No share price has been fixed, but advisers say the pre-placing will be 'at a discount' to whatever final Aim float price is determined. Oxus owns a 43 per cent stake, bought from Lonmin, in the Amantaytau goldfield in the Tien Shen gold belt of Uzbekistan in central Asia, which is claimed to contain a reserve of 3.3 million oz of gold.

Oxus expects Amantaytau to start open-pit production next year at the rate of 140,000 oz a year. The company, in which Australian mining group Normandy holds 24 per cent and Lonmin 8 per cent, has other potentially promising stakes in central Asian gold and zinc projects.

Old Mutual Securities has been preparing Oxus for flotation, with consultant David Williamson Associates lending a hand. A cut-price pre-placing should be priced attractively for those offered it, but most investors will have to await the prospectus to form a judgement.

Williamson is also advising Coronation International, the mining hopeful with gold and other metal interests in West Africa, on its planned move from Ofex to Aim. Coronation's boss, Suren Merchandani, is thought to be considering approaching accountant Grant Thornton to act as its nominated adviser.

This makes sense. GT's Brian Moritz has been making a speciality of small mining companies - though the accountant's association with the allegedly Mugabe-linked Oryx group generated plenty of flak earlier this year.

Coronation, whose prospects have been enhanced by its potentially one million ounce gold deposit at Essakan in Burkina Faso, has fluctuated widely during its career on the J.P.Jenkins share market. This year the price has oscillated between 14.5p and 36.5p a share and now stands at 24.5p.

The company has had a credibility problem and sceptics have even queried the merits of Essakan. An Aim switch, if it can be made soon, should go some way to removing these doubts and enhancing the shares' appeal.

The mining majors are in vogue these days with the fund managers and few more so than the Anglo American colossus and its partly-owned sister company Amplats. Strong interim results from Anglo have sent analysts upgrading their full year profits forecasts to nearly $4.5 billion (£3.2 billion), against less than $3 billion last year on turnover $1.5 billion ahead to $20.7 billion.

The contribution from diamonds is seen as rising from 12 to 17 per cent of total profits, but platinum profits are expected almost to double their input from 15 to 28 per cent. Strong demand for platinum group metal from the motor, electronic and other industries is keeping metal prices high and this is providing a strong fillip not only to Anglo, at £40.75 a share, but also to Amplats at £27.50 a share.

The prospect of further consolidation and realignment in the platinum sector has helped push up the price of Lonmin shares 22 per cent to 895p since I highlighted its role in July, while Impala at £32 is close to its 2000 high. Both Anglo and Lonmin should have further to go.

One of the strongest performers on the Ofex market of late has been Product Power International, the company set up to supply infrastructure equipment to mining and resources companies operating in central Asia. The shares have trebled to 15p since their launch in late August, to value the company at around £900,000.

Bruce Rowan, one of PPI's key backers, says he suspects covering of short positions could have accounted for some of the rise. But the consensus is that John Webster, PPI's boss, is making promising headway towards agreeing deals, including franchise and dealership-type arrangements with equipment producers and resource groups.

Sources close to the company now suggest it is contemplating a second fundraising. According to close observers, the motive for this would be partly to fund further expansion and partly to increase the liquidity of the shares.

Investors sitting on fat paper profits should consider cashing in some or all of them - if the Jenkins market liquidity enables them to do this without undue pain - rather than stump up more money or face dilution. Those persuaded of PPI's long-term potential should hold on.

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