Augusta Gold (G.TO)

He likes gold. It is too early to say gold has hit its bottom. You see gold basing here on a 5 year chart. Gold is approaching a very strong buy here. This is his favourite in the group. It is ending its CAP-X cycle so you are going to see pretty strong growth in cash flow.

If we see gold go through $1000 then they will all have to cut their dividends. Their operating costs are still high. You can buy ETFs that are a pure play on gold and there is no operating risk. Gold has to go back up to $1400 for this one to do well.

Gold bullion is negatively correlated to the stock market, so if you believe the stock market is going or is in a bull market and going to continue, then gold is probably not your best place to be. The stock is attempting to base and break through the $30 level, but so far has been unsuccessful. The last low at around $24-$25, has been taken out to the low. This is in a downtrend. If you own, he would look for an oversold bounce and get out.

Probably the best large gold company. Switzerland is having a referendum vote, where they want to bring back the gold standard back to Switzerland. There is quite a big groundswell of support. If this happens, there are estimates that there will be a lot of gold buying. Feels that gold bulls are grasping at straws sometimes. He doesn't own any gold positions.

This is a great long-term Hold. A fine company that is well run. They are going to have major increases in production over the next 2-3 years, 1.6 million ounces going up to 3 million. Have their costs under control.

Been under pressure as gold has for the last two months. Not sure how long it will take to run its course. Interviewed management a few weeks ago and depending on the timing of the various cap-X, they may be in a position to increase the dividend in the first half of next year if gold prices don’t fall further. It is his top choice in the area, although he is not that eager for this sector.

(Market Call Minute.) The largest gold company with the best management. It will continue to see growth in production even if the gold price doesn’t move.

He doesn’t have a lot of investments in gold. A little on the bearish side of gold right now. Quite cheap at these levels.

Biggest gold producer globally and has a great growth profile. Bringing on Elinore in Quebec over the next couple of quarters. Also, bringing on their mine in Argentina. With new assets there is always the degree of risk on expectations. He would be very comfortable owning this name. (See Top Picks.)

One of the huge changes that are about to take place in the gold market is that the main market making is going to go from London to Shanghai. Chinese are increasing their imports of gold and they don’t allow exports. Have tons of US dollars and he thinks they are going to try and protect the value of what they have. One of the ways they do that is by owning gold and seeing it go up in price.

Premier company that is doing everything right. Gold is difficult to play. Franco Nevada is the only company that has outperformed the bullion.

(A Top Pick Aug 16/13. Down 1.73%.) He likes this. Has the least volatility of all his gold companies. Produces gold at a reasonable price, lower than the current price of production. Thinks they are going to have a lot of leverage when the price of gold does start to move. 2% dividend.

(Market Call Minute.) This would part of a core portfolio.

He doesn’t own any gold. This is probably one of the better run companies in Canada. With some of the curbs on imports in India, that might be a bearish case on gold. China is the largest consumer of gold, and data recently showed that Chinese demand was down 18%. Also, as the Fed continues to taper, interest rates should be rising higher.

This would have been a buy earlier in the year in the lower $20’s. Now it looks like it has woken up from the dead. A little bit rich here, but is probably one of his favourites. Good set of assets and good management team. You probably should wait for the stock price to cool off.