Alacer Gold Corp (ASR.TO)

Located in Turkey is one of the major dangers, because of their elections and that they are not getting along with Russia. Thinks the US$ is high, so when that comes down the gold price should go up. The company has zero debt and they make money. Thelr “all in” sustaining costs is $600+. Have about $650 million they can draw on to expand, but that adds a lot of risk to the company. His initial sell target is $6 and change.

Have some hits against them including the price of gold, the US$, and it is located in Turkey. Have about $385 million in the bank. Had no debt, but have taken some on so that they can expand their copper play in Turkey. Their “all in” cost is less than $700, so they are profitable. The big thing now is that they have to bring this play on and expand it effectively, and that is going to take a few years, and probably about $650 million in total, which is why they have the debt lined up. He can see this doing a triple from here.

Lots of money and no debt and they are expanding their copper deposit. Companies have been looking at them and they could get possibly taken over at some point.

Loves this company. They have US$340 million in the bank and have no debt. There is a little bit of danger because they only have the one mine in Turkey. They are changing things there. They are producing at the mine and they have revenues. They are looking to extend the life of the mine. He can see this going up to $6-$8. Hypothetically, this could have been a Top Pick for the show.

One of the better cost profiles, $700/oz. The mine life is somewhat short (3-4 years) and then the mine tappers off. They have to develop a second asset that requires a lot of capital and infrastructure. It will consume all of their cash flow. There are better places to go.