Augusta Gold (G.TO)

He rates this is a B-. Likes its balance sheet. Cost of production is very low. Going to produce 3 million ounces this year. He included a gold stock in for inflation protection. Was up 20% in January. Pays a 2.4% dividend. They’ll probably win Osisko (OSK-T), which will be a good deal. Still producing good cash flow. The sector has been beaten up so badly that it is probably going to bounce in 2014.

(Top Pick Nov 8/12, Down 39.06%) OSK-T is putting up a wall. He is optimistic. At the end of the day there are secondary assets that could be spun out. Management started this company and is very attached to it. Still likes this one.

This company does not hedge production, so it is very sensitive to gold prices. Have rising production because they have projects in place and lower excretions (?) and she likes that part of it. One of the few gold names that she does hold. She is not expecting a sharp increase or bounce back in gold from here.

If we stay at $1200 or lower for months for gold, companies have to start thinking about shutting in production. If that happens supply and demand should come into play. The sentiment in the sector is the worst in many years. He would be inclined to buy a little more of this one at this point.

If gold stays low then you will get a lot of shutting in gold so there is probably a floor on the price of gold. He thinks there is an opportunity where the sector is pressed lower due to tax loss selling. He is not bullish, but it is at the bottom of a range so you could nibble.

Likes this gold company because it is so well-run, a fairly lower cost producer and has a fairly good production profile going forward. Tries to limit his holdings in gold to 5% or less.

(Market Call Minute) If you have to be in gold it is probably your best buy.

Earnings were not that great last quarter. Found out that production was lower but, at the same time, costs were lower. This is not in an ideal situation. They are having some difficulty in Argentina and that is going to lower production for 2014. Have had some grade problems with the Red Lake properties.

It is very important that this holds its lows here. Assuming gold can stay in this range, and he thinks it probably will, this is not an expensive company whatsoever. If you started selling off the component parts, this would trade at a higher level. The trouble is, there is no money flowing into gold right now. It needs to get through the next month or so because there is tax loss selling in this sector.

(A top pick Oct 25/12. Down 42.58%.) This has gone down with the price of gold. The only gold stock he owns. Likes management and the balance sheet. They do the right things; it is just that it is not a great industry at this point in time.

He is extremely underweight, with only one name, in gold. Of the seniors, this would be his favourite. If you believe that gold has bottomed, you could pick your point and average in on gold, which is what he is thinking about doing.

Cerro Negro has been delayed. A lot of gold companies in general have been pushing back production. Costs have been escalating. If you want to be in the gold space, this is probably one that is a Buy, one of the better ones. Lower cash costs than average. Less geopolitical risks than average.

Not constructive on gold. This is one of the higher quality companies which will not require higher financing. Very strong management team. This is really going to trade with bullion. If you are constructive on gold longer-term, you can own.

Your thoughts on the growing deficit between Japan and the US and will gold eventually make its way back up? Doesn’t think this has any relationship with US and Japanese relationships, etc. Gold is a sector that will do its own thing. It is not subject to conspiracies or to any kind of strange event at all. It is only subject to the lack of new high-grade deposits. At these levels, companies like this are trading very well. Good for a long-term hold.

(Top Pick Oct 5/12, Down 45.37%) Three gold companies gave sell signals on Feb 24^th. He said he never saw anything like it. he reduced his position back then. He is nibbling back at golds now.