Agnico-Eagle Mines (AEM.TO)

This is the best of the senior producers. It has a fantastic balance sheet, and really good assets. Has held up well compared to other names. Overall, the sector is in a longer-term bottoming process. $50 became an interesting place for buyers. His one year target is around $68. January and February are very supportive of gold prices, and in February you want to take some off the table as it gets weak from March onwards. Believes that bullion overall is making a significant longer-term low here, and producers always reflect the bullish/bearish moves before the underlying commodity, and we are seeing that now. Risk/reward here is really good. Dividend yield of 0.99%. (Analysts’ price target is $71.25.)

One of the better gold companies. Good management and strong cash flow. A lot of their assets are in Canada, so they will do well with a falling Cdn$.

(Market Call Minute.) He likes the US$, so is not a big fan of gold.

Chart shows a very strong move at the beginning of the year and then ran into problems. It has now established a downward trend. Historically, October is the weakest month in the year for this. The possibility of improvement will come probably in January into March, when the stock normally does well. Gold is not a good place to be right now.

This is fully priced, and going higher. They have been wonderful implementers and have generated wonderful return on capital employed. They have a very clear pipeline of future production, and the financial flexibility and operating capability to capitalize on it. A top quality name.

Has always held this company in high regard as a producer and processor of gold. This is going to move in the same direction as gold. When he needs gold, he used Goldcorp (G-T) because of its valuation.

(Market Call Minute.) This should have been sold a week ago.

This company is great. It is probably the smallest of the major golds. Has had trouble with some of its Canadian domestic mines and has rectified things brilliantly. It has now expanded into Latin America with about 5 mines. The stock has done better than the others over the longer-term. A nice hold if you are not going to worry about short-term corrections.

A high quality name. He likes it. A nice uptrend from June to August. It has some really great support at $65 - $71. There is a lot of volatility going on. Longer term it has just started its breakout, but it could come back quite a bit from the breakout at $50 before it started another move up. If you wanted to trade it shorter term, it is tough, but 2-3 years it is a really good name.

He likes the silver business. His experience has been that the silver market moves later than the gold market, but it moves further and it moves faster. This is a high-quality company at a premium price with a premium product. Good balance sheet and good management team. Very good pipeline of projects to put in production and a really, really experienced mine building team. It is priced to perfection and is pretty close to perfection.

(Market Call Minute.) Very good quarter. Operationally continues to be best in class. Probably gets money from sellers of Goldcorp (G-T) rotating into it.

This has always been one of the premier names in gold. They are a growth oriented producer that is very active in the junior space. If you are looking for a growth oriented producer, this is the name to own. It is going to be one of the big beneficiaries if we get a run on gold, because of their exposure to a lot of junior projects and junior miners.

One of the better gold companies. He is still going to sit on the fence until he gets a better feel for gold, and it could be coming fairly soon.

One of those “go to” names in the gold sector. This has been a solid, steady performer year-over-year. The emphasis is people and mines, but he also likes that they are mining in countries that have safe political environments. A low cost mine with 1.5 million ounces a year. Dividend yield of 0.59%.

Gold is being driven by negative interest rates, but also there has been a massive underinvestment in exploration in the space and there is very little in the foreseeable future. Companies like this not only play a higher gold price, but this is known as one of the go-to growth producers. Also, they are one of the investors in the junior space. It typically takes fairly large investments in juniors. On the next big growth project to be found, this company is probably going to have an angle on it.