Detour Gold (DGC.TO)

How do you determine the value of your gold stocks? His general strategy has been to concentrate on the producers, not the explorers. It’s the guys with cash flow that are going to control the market. He has been concentrating on those that have the lowest cost of production. Next he likes to know where the properties are geographically located. Likes the north-south investments because he understands the politics and the laws. This particular company is a massive disconnect as they started producing this week and the stock fell.

Thinks gold will be staying around this level and doesn’t expect much upside. This company has to get into production now and is reaching that vital difficult stage, which generally isn’t successful in the 1^st year of mining companies.

One of the largest undeveloped Canadian gold mines. Could see it producing in excess of 500,000 to 700,000 ounces per year. Good management. $30 stock price is not out of the question.

Great project. As a mine is being constructed the stock will flat-line, which this one has and we had a good season in precious metals this year. He is now paring back on precious metals.

One of the largest undeveloped gold mines in the country. 16 million ounce reserve and a 36 million ounce resource. They are in about the 9^th inning of getting the mine up and running. Can see this being primed for an ultimate takeover once they go into production. Forecasting 700,000 ounces of gold production per year.

Have a couple of interesting projects. They are definitely growing. Has it as an “out perform” with a $33 target.

Likes this one for the long-term but in the short term it is overbought. Long-term she thinks the project is very profitable and economic. Have close to 20 million ounces in gold. Looking to bring this project into production next year. There might be a little bit of a hiccup but she doesn’t expect a large correction.

It is a year behind OSK-T. Detour is on the other side of the border. Similar footprint. Under $500 an oz operating cost. Production goes commercial in second half of 2013. They can learn from OSK-T. Likes the metrics of OSK a little more because they are just over the cusp of getting over their problems. He would rather own Detour later.

Northeast Ontario. In process of constructing mill and infrastructure. Excellent management. Excellent way to play the gold space.

Done a good job. Are going to start to go into production. You have to be prepared when someone is going into production; there could be a hiccup. Still likes the story but be cautious when they are about to go into production. He would wait until they do to buy.