Alamos Gold Inc (AGI.TO)

(A Top Pick May 30/14. Down 13.9%.) This was a poster child for delivering free cash flow. Earlier in the year they announced that grades were going to be lower than expected, so free cash flow is going to drop. Also, announced the 2016-2017 projects they had in their pipeline were now more 2017-2018. Because free cash flow looked quite diminished, he exited the position.

A cheap gold company and a stunning balance sheet. You have to hold golds in your portfolio with what central banks are doing around the world. It is insane and eventually these things catch up.

A higher quality company. Gold is almost at the highs that it was a few years ago in Cdn$ terms. Doesn’t think this company has anything particularly good, so you actually really need a movement in the gold price. Nothing dynamic right now to be in this.

Like all gold companies right now, with the price of gold trading at $1200, FMV is nothing to write home about. The leverage on a rebound in gold pricing in 2015-2016 could be really quite something.

(A Top Pick Sept 17/13. Down 37.05%.) Was almost thinking of adding it as a Top Pick again, but the timing wasn’t quite right. They are going in through a pocket of lower material now, so earnings and cash flow are not as high. Still have a lot of cash. Thinks they will continue to move forward and get their grades and production back up, but the market just doesn’t care.

(A Top Pick June 6/13. Down 28.46%.) Has fallen from grace. Unfortunately, in their transitions of zones, you are going to see lower production and higher costs. Sold his holdings in mid-January. Prefers others.

(A Top Pick May 14/13. Down 38.27%.) Most of this underperformance came in the 1^st quarter. They put out a quarter that they expected to get into high-grade and the grade ended up not being there. Also, unrest in Turkey hurt them. Based upon their production in Mexico alone, the business is worth $10 a share. Has the best balance sheet with $250,000 in cash.

(A Top Pick March 4/13. Down 21.52%.) Has about $450 million in cash on their balance sheet. At the beginning of this year, they announced that in the following year they are going to see lower production and higher cash costs and the market decided they didn’t like it any more. Also, one of the managers in Turkey resigned today and that hit the stock. Still thinks it’s a good company and still likes and would consider adding more to his holdings.

(Top Pick May 14’13, Down 27.69%) Sitting on a pile of cash. They predicted less free cash flow. Two other opportunities don’t look as good as previously. He is willing to hold, but is not buying more.

His company has this as a Sector Perform but he doesn’t follow it.

Increased his holdings at the beginning of this year. He likes that in the last 4-5 years, they’ve put a huge amount of cash on the balance sheet. This was from operations so they have been one of the most profitable mines that has been built in the past decade. Nice dividend. Turkey should be their next leg of growth.

Gold producer in Mexico. Efficient operator. Mexico is a good jurisdiction. It is tied to the price of gold, which will be challenged short term. Mid to long term it could be up 10% in a year or two.

Lots of cash on the books, small dividend and a low cash cost producer. Even when the gold price came down they were making money. Built up cash over the last couple of years. Acquired assets in Turkey. Putting this into production over the next couple of years.

(Market Call Minute) Likes the sector but not his favourite stock.

One of the more defensive ways to play because all in costs are probably $800. Low costs, growth perspective with Turkey mine, so they can withstand this volatility on the gold price. He bought a month ago. He bought it on weakness. You might want to wait through the summer for some weakness.