Augusta Gold (G.TO)

Barrick (ABX-T) or Goldcorp (G-T)? Gold is around $1200-$1300 an ounce, about equal to the cost to profitably bring on a new mine today. If gold goes any lower, you’ll see capacity fall off, which ultimately will turn the gold price around. The issue is which company can do better in a rising gold market. Barrick languished because it had a balance sheet that wasn’t very good, and had to raise equity to fix it. Goldcorp has some of the best growth opportunities, which is ultimately what you are buying.

Gold has been out of favour. We are into some seasonality currently and gold stocks are generally up 10%+. He has been wondering if he should be lightening up, but it is acting very well. If he sees other kinds of problems on the horizon that may shake markets up, gold stocks may tend to be the offset.

(Top Pick Jun 12/13, Down 2.86%) You have to time the cycles correctly. The time to own them is when no one wants them. G-T has a strong balance sheet and a good production profile going forward.

This would be his favourite senior. This price is not a bad long-term entry point. Like a lot of them, it just depends on what you think of the price of gold. Have a lot of cash that they could buy something.

The last 2.5 years for gold stocks has been pretty painful in general. This is one of the better run stocks. The previous Indian government imposed a bunch of import taxes and duties. New government will be removing most of those, which will be a big boost to physical gold demand. Everybody should have a little.

(Market Call Minute) Quarter was solid. They beat expectations across the board. It is his preferred gold company in the sector.

The pullback today is a good entry point if you think gold will continue to recover. The transaction is accretive. The company is delivering.

Negativity is about the 43101 release of a couple of days ago. It only gives the reserve oz and not the rest of the asset. Disregard the negativity. The new mine in Quebec will come online later this year.

(A Top Pick April 26/13. Down 5.34%.) Has made an offer for Osisko (OSK-T) and Yamana (YRI-T) has come along with a couple of pension funds to scuttle that. Likes this company. Cost of production is in check. Have been generating a lot of cash flow.

Made a lowball offer of $5.95 a share for Osisko (OSK-T). What has worked against them is that Osisko is very levered to higher gold prices which means that it is worth more. They are probably going to have to pay a little more. There doesn’t seem to be anybody else showing up so they are still going to get it at a relatively lowball valuation.

Takeover bid for OSK-T. G-T and OSK today agreed to settle some of the litigation between them, but they are not currently in talks. Gold had a huge move and it is hard to distinguish what is the driver. This one should suffer if the deal is not going to go through. Gold stocks are very, very cheap. We need core inflation to pick up to drive gold. We are looking at range trading for most gold stocks right now. Thinks there may be one more move down for gold.

Best run of the large gold companies. Have a wonderful growth profile over the next 5 years.

The core of his gold positions. When the big money comes into the sector this is the first one they will come for first.

Held on to it as a core position. Looks like gold is turning. There is nothing internationally that should encourage him, but technically it looks okay. His max weighting would be about 5% and G-T would not be a bad bet if you want to do that sector.

Thinks gold stocks have made a bottom for now. Likes that stocks are moving before bullion, which is generally a positive. This one is a leader in its field. Good properties. Their geographical diversification is probably a little safer than some of their competitors. Valuation is high but he feels gold stocks are underowned at this time.