Detour Gold (DGC.TO)

Seasonally, gold has strength from the middle of July until the end of September, and from around the middle of December until February. This stock has gone into a parabolic curve which is not related to seasonality. Technically you have to love the stock. It is in a definite upward trend and has broken through to new highs.

(Market Call Minute.) This is going higher. It’s in a new high grade zone. He really likes what they are doing.

In the last 6 months, the mine might be an awful lot better and bigger than anybody would have thought. The “go to” name in the industry today, but a lot of that is now being discounted.

(A Top Pick March 9/15. Up 115.14%.) Likes the gold sector. This one is Canadian, low cost, and growing production. He sold his holdings.

Have done a phenomenal job of bringing their mine into production. Initially they missed targets, which is completely normal. Now they are right in line. This is a company that could potentially be taken over, but doesn’t see that happening anytime soon. It is profitable and is in a safe jurisdiction, and the Cdn$ is helping it. Also, there is room for expansion.

(A Top Pick March 9/15. Up 109.25%.) Sold his holdings. Had been looking for a potential take out, and didn’t want any of the political risks of mines in other countries.

It is in a category he would look in. Their output is in US$ and their costs are in CAD$. It has been out of favour for the last few years. He thinks the outlook for gold is better going forward than for the last 2 or 3 years. This is a well managed company with lots of funding in place.

You are getting a lot of outperformance in relation to the sector itself, which is down 40%. This has been the best performer in his portfolio. Year-to-date this is up 62%. When the price of gold rebounds, that is when these companies are really going to kick in.

Thinks this belongs in Canadian gold portfolios and is a company that has been effectively de-risked. Fully priced, but the Canadian gold stock market will be higher in 18 months. This will be a participant.

This has been outperforming the most since November of all the stocks he has in his portfolio. Great project and low cost and continues to grow. Well-managed. At some point this could get taken out.

They are through a fairly challenging startup period. They have a decent balance sheet. It either goes up or someone takes it over. The bugs are out of it.

A good contrarian play. The company has gone through its teething problems of start-up and is heading for 500,000 ounce production, which makes it the largest gold mine in Canada, and he thinks it is heading for around 600,000 with extra lands that it can explore. Its costs are going to descend to about $700 all in, from the $1200 they have currently. This is absolutely a take out candidate.

One of the cores in his portfolios. Likes their Canadian project. They continue to lower the cost of production and are actually up and running. His company has it with a $19 target and as an “outperform”. He will continue to hold this.

(A Top Pick May 30/14. Up 46.78%.) Really starting to hit its stride. Has been commissioning the Detour Lake mine in Northern Ontario. A huge mine, 500,000 ounces a year in production and a 20 year mine life. Initial operations haven’t met what they were guiding for the full year, so there was some concern that this ramp-up was going to take longer than expected, and perhaps the balance sheet would weaken. They are now running well above their full-year guidance. Thinks there is potential for this to see analysts’ upgrades on free cash flow estimates for 2015.

Thinks the reason the stock has done well is that they recently had a mine tour that just started ramping up production this past year. It is going very smoothly.