Agnico-Eagle Mines (AEM.TO)

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.

Gold stocks had been beaten down, but he just can’t see how much higher they can go without the gold going substantially higher. His model price is $24, a negative 63%. Very, very expensive.

(Market Call Minute.)

Have some pretty high-quality mines in Canada with fewer political risks. It tends to receive a premier valuation because of the perception that it is a well-run business. However, even in a case like this, where it has generally been seen as one of the better run gold companies, looking back over the years, they haven’t created a lot of free cash flow and value for their investors.

Gold is not an investment in his view, it is a speculation. Gold companies have been absolutely dynamite for traders in the last 3 months. He is not a gold owner, and doesn’t understand why gold is doing what it is doing. If you are a trader, have a good time, but look at the charts and understand that you have to be agile.

It is his ‘second’ gold mine. He is starting to deploy more cash. He already has G-T, but this is one of those go-to names. They will do well as gold prices recover.

(Top Pick Oct 6/15, Up 17.70%) We are now going through a corrective period (wave two). The key here is not to make a new low.

It has been a star recently. It is a gold company that pays a dividend. There is 10% trailing cash flow so lots of room to increase the dividend. 2.3% free cash flow. PE is .38. It is one of the few gold companies with attractive fundamentals going forward.

It is one of the better gold stocks. It is a fantastic strong performer compared to XGD-T.

(A Top Pick Dec 12/14. Up 39.32%.) Will be reporting earnings in February and it will be interesting to see what they do with the earnings expansion Canadian producers are having. Thinks their earnings in February are going to surprise to the upside. He would pick this up on any weakness. On a long-term basis, all the assets they have are going to pay out very well for long-term shareholders. Dividend yield of 1.11%.

(A Top Pick Dec 12^th/14. Up 37.95%.) Has beaten the Dow year to date by about 10%. Thinks this will be the best of the senior producers. Because they are making money in this environment through low cost of production, they have been able to acquire many projects. Dividend yield of 1.12%.

(A Top Pick Oct 6/15. Down 11.04%.) Today was a bad day, but he thinks it will get over it. This is one of the stronger ones. Feels it will consolidate here and then move higher. If you own, continue to Hold.

Has good quality mines in safe jurisdictions of North America and Europe. With the takeover of Osisko (OSK0T) last year they were basically able to increase their output 30%. They are going to be producing 1.6 million ounces this year, and the all-in costs is under $1,000 an ounce, i.e, the sustaining costs not the cash costs, which is about $300 an ounce lower. Dividend yield of 1.12%.

(A Top Pick Nov 12/14. Up 34.59%.) This is still the core of his gold position. Great management. They keep growing their reserves of their properties.