
TSE:BTO
One of his favourite gold stocks. Has a very good growth profile. Made an acquisition a few months ago that will help grow the company and their production. Fairly low cash cost relative to the rest of the industry. This will be a function of where the price of gold goes. If you only had 5-6 gold names to own, this would be one of them for him.
Positive on gold but this stock doesn’t need gold to go up for this to work. Going from 150,000 ounces of production to 375,000 with the closing of the CGA Mining merger. Typically what happens when you get these kinds of stock takeovers, there are a lot of arbitrage sellers. Now that the deal is closed, he thinks it will catch up to the rest of the sector on a valuation basis and then you have the growth to really drive it higher. P/E ratio of 22%. Can easily see $4.50-$5 in the next 6-12 months.
Just got approval to acquire CGA Mining, which has a fantastic property in the Philippines. Thinks the CEO is going to grow this in order to sell it at a huge profit, similar to what he has done in the past with other companies. Could see $5 easily, even in a flattish gold environment. If the gold environment turns out like he expects, it could be a double.
(Market Call Minute) One of the best management teams. Challenges in the Philippines with tax laws.