Franco-Nevada Corp. (FNV.TO)

80% of revenues from gold and business is royalties. But has done extremely well. Likes the story.

(Market call minute.) This is one that a person could look to buy over the next number of years. Commodity prices are currently depressed but royalty companies will benefit as prices increase and their payouts are fairly generous.

This is a play on gold and you get a royalty on gold production. Thinks it is too early to be looking at gold.

(A top pick June 29/12. Down 16.3%.) He couldn’t have foreseen this kind of a slaughter on the gold stocks a year ago. The reasons people were buying gold a year ago are still there today. Being a royalty player, they are well positioned and don’t suffer the cost increases that the producers suffer.

(A Top Pick June 11/12. Down 5.21%.) This is by far the best performing gold stock. Continues to like this. Still a Buy. The safest way to play gold.

A lot of this depends on the price of gold, which is hard to predict but he feels it is in a bottoming process. Good growth prospects. Very similar to a royalty stream where you are not taking on huge amounts of risks.

(Market Call Minute.) Expensive.

He is bullish on gold, but this is not a pure play. It is oil and gas as well. He likes the idea. Gold has to go higher but we are limited to high single digit growth in gold.

(A Top Pick June 29/12. Up 23.35%.) Because it has gone up so much, he sold his holdings to wait for a better entry point or invest in a more pure play. Technically it is forming a good base but it really depends on what happens to the price of gold.

Royalty companies are the purest play because you don’t have the mining risks. This is why they have always gotten a higher valuation. The whole sector has been hurt because so many investors are investing directly in gold. 1.2% yield.

His favourite gold because it is largely a royalty company so doesn’t have operations that are subject to higher cash costs. Also, have some investments in some mines where they will take an off-take of the gold such as a copper company. Just announced a $1 billion deal with Inmet (INM-T). $55 in 12 months is a reasonable outlook.

Just made a big deal with Inmet Mining (IMN-T). Market likes the royalty business model, in particular because gold companies have had a hard time delivering with cost overruns. Every time they do a deal, it generally works out positive for the stock. However, it’s almost 2X NAV while you can buy others at a discount to NAV. Quite expensive on a relative basis.

(Top Pick June 29/12, Up 6.11%) Excellent way to play the gold space. Gold should reach $2013 in the next year. It is an alternative currency.