Franco-Nevada Corp. (FNV.TO)

We will see what happens on September 21. FNC-T is a royalty company, a great company. They have solid cash flow and are looking to buy more assets. This is a steady long term investment.

The premier in gold streaming. Gold has been fraught with peril over the last 5 years until very recently in January, when the price started climbing again. Canadian investors are very, very sensitive that gold is 6%-7%-8% of the TSX composite by weight. There is a lot of hair on a lot of gold mining/producing companies, but this one is free of all those risks as they own a streaming business, and are more of a financing company rather than a gold company. This has a tremendous management team which runs a very lean and mean business.

If he were to own a gold stock, which are on his radar right now, it would either be this or Silver Wheaton (SLW-T) on the silver side, because they have a royalty model. They don’t have the exploration or mine operating risks that others have. This is very well-run and he likes their business model.

(A Top Pick Aug 12/15. Up 70%.) The highest quality gold stock globally. This is a key constituent in any investor’s gold stock portfolio.

This should be a core holding in most people’s portfolios. Through some very difficult gold years over the last 7 years, this had only one down year, in 2013.

This has been a great name and has really powered up in the last 6 months or so. Gold has been a very strong mover. However, you have to be careful as to where the US$ is going to start moving, and will that have a negative impact on gold. If interest rates move up this summer, that might put a bit of a dry spell on some of the commodity space. If you own, start using some stop losses to where you want to hold the stock.

(A Top Pick Aug 12/15. Up 45.24%.) Highest quality gold company globally. Most sustaining capital requirement, world beating margins and a spectacular franchise. We are at a place now where base metal mining companies globally need to recapitalize. Size could conceivably double in the next 18 months.

His model took him out of gold in 2012, not to return until Jan/16. Started to see improvement in breadth. This company grew their ounces by 15% this year, a very difficult year. They became the financer of last resort for gold companies that wanted to finance, and get a royalty on all the gold those companies produce. One of the best performing stocks in the group.

It is hard to come up with too many comparisons, because this is a royalty business. When looking at these businesses, you really have to take your position on gold. If you are a dividend investor, gold is probably not the area you want to be in. There is commodity risk, a lot of volatility, and not much yield. He owns very little gold. However, if you are going to be in gold, this is a name you want to be in. Would prefer Goldcorp (G-T).

He loves this company. It has outperformed all the other companies. What is good, is that it is American based, and a lot of US institutional money comes into it. His company has this with a US $58 target. He likes the dividend structure for some of his older clients.

There are all kinds of companies that have grand plans as to what they would like to do in their business, except there is nobody prepared to give them any money, except this company. Their business is to finance companies by providing them capital, and in return they get paid a royalty on anything that gets produced on the property “forever”. At a time when things are tough, this company is able to make very good deals. Have just done a couple of really great deals. The price of gold really doesn’t matter that much to them because they are just getting revenue and they don’t have high costs.

This is not for you if you are a trader. This is the highest quality gold company in the world. They can double in size in the next 3 years due to streaming. The highest quality gold investment on the planet if you believe in the gold price.

The premise is that you have a portfolio of royalties. They could be early stages, or it could be something currently producing. It is the priciest one, but you pay up for quality. The upside is also that if there is an increase in production then the royalties ramp up.

A gold streamer. He likes it for the dividend. They have a really good structure, so the dividend will increase as we get the price. This is more for a conservative account. Dividend yield of 1.69%.

If you are going to be in the gold business, why not start with the best. This is the best. Owner/operated company. Have run the company on and off for 3 decades. High quality people. Their basic business is even better than people think it is. Precious metals assets in a streaming format, are valued at 15%X EBITDA. Those same assets in a base metals company are valued at 5 or 6 times EBITDA. Dividend yield of 1.78%.