First Quantum Minerals (FM.TO)

The drop in stock price is not the company’s fault; it is the whole market apathy to anything that is a commodity. He would recommend that you get out and buy something else.

Gets excited about this company. Liked Inmet which they acquired in which they fired about 50% of management. Threw their plans for the processing plant out the window. Fantastic company but the problem is, they have copper, which has been down. Too early to buy this.

Really liked Inmet Mining which this company acquired. Not only are they scrapping Inmet’s plan for the processing plant, (they are moving the whole plant), they are not doing any soil scraping that had been planned. He is really impressed with what they are doing. Not big on the product but perhaps it is time to start picking away at some of these things.

What is exciting is that they made the acquisition of Inmet Minerals to diversify their copper geographically. What was just Africa is now Africa, Europe and Panama. This should pop them into the Top 10 copper/nickel producers globally in the next year.

(Top Pick Apr 10/12, Down 6.69%) It is a good company overall. Did a phenomenal job of developing mines. With the big Inmet project they will be dealing with it for some time. It’s been a great name but the catalyst didn’t happen. In the future it will be a buying opportunity.

Copper has been down for a couple of years. You get to a point when things are oversold. Remember the big picture for continued volatility.

Metals and mining sector typically does well, usually from about mid-November right through until May. This would be the end of the trade. It hasn’t done well and has actually gone down in the 2^nd half of that leg. Has gone through its support level in the next support level would be at about $13.50 or so.

(Has a small Short position in this.) Doesn’t have a big exposure to mining as he is worried about global growth. Data out of China has been less than stellar. He is worried about copper.

(A Top Pick April 10/12. Down 21.06%.) Had thought the Inmet deal ultimately would be great and that another bidder might surface, which would give a valuation lift to this one. Still holds a little but the stock has been disappointing. You have to wait awhile to get paid.

There is some support about $18 and there is a very dominant resistance point at $24. It’s close enough to the support level that it may be worth a shot if you like it fundamentally. Play it to $24. It looks ok from a purely technical point of view.

(Top Pick Oct 9/12, Down 11.70%)

Has an offer on the table to acquire Inmet Mining (IMN-T). Normally you wouldn’t buy the acquirer but he feels this is a point in time that nobody else is going to come out after Inmet so they may be able to get this at a great price. This would be a great accretive acquisition for them.

(Top Pick Oct 9/12, Down 2.47%)

He is still in the Silver game, but owns a different one. These guys are good operators as well. You have to wait for the silver price to improve. You can only wait for so long, but this is a pretty good entry point. Put in a metal stop and don’t get too hurt by it. This one has some torque to it and tends to go fairly well when silver takes off.

Looking at the last 10 years or so of its projects, it has brought in its projects on time and on budget with just on average a 7% increase in budget which is unheard of in mining. Do most of the work in-house which is why they are able to keep costs under control. If they acquire Inmet (IMN-T), which he thinks they have a very good chance of, they’ll be a top 10 producer and, widely speculated, a takeover candidate itself and would go for $30 or more. P/E ratio 6.2%. EPS $3.49. Yield of 0.56%.