Jon Case AuRico Gold Inc AUQ-T COMMENT Jun 17, 2015

Had been Short this because he thought they were going to have a capital shortfall in the summer. However, they were able to sell an asset so the stock had a nice rebound. Looks pretty attractive here.

Likes this but doesn’t own. Sees many, many names in the gold space that are cheaper.

Likes the range of assets.

Have done a pretty good job. Instituted a dividend. Mining from underground and testing new equipment over the next 6 months. He prefers to keep a watch at this time. Buy below $3.50

Predominantly in Ontario. Have a Mexican asset. A lot of the cash flow has to get re-invested to ramp up project in Ontario. He has bought it on weakness in the past.

Gold is a trade right now. Likes this one and would recommend it, although these are not cheap any more.

Paid a lot of money in terms of dividends when they sold one of their Mexican projects recently. Their marquee asset is now the Young-Davidson mine and is one of the best underground mines that he has seen developed in the last decade. He is a bit cautious on the grade which is about 2.74 g per ton, which is fairly low grade for an underground mine. Wants to watch how they ramp up production before getting back in. When a mistake is made or there is a problem, high grades will cover mistakes whereas low grades margins are already potentially tight.

One of the most impressive underground mines he has ever been to. Have haulage systems, automation, which is incredible. Was skeptical last year they would be able to get tonnage up to their target. They have beaten all their target levels. Doing a really good job. Underground reserve grade is about 2.7 grams per ton, which for an open pit would be spectacular, so this is one of the lower grades for an underground mine.

(See comments under Gold.) The only problem he has with this is that it may be a sector laggard. He would prefer gold stocks that are out performers in the sector. He wouldn’t add to this one, but would pick another stock instead.