Augusta Gold (G.TO)

His 2^nd favourite gold stock. Over the next 3 or 4 years they will significantly grow their production. Even if there are hiccups they should be able to overcome them. Cash flow and earnings will grow largely because of the growth profile of the ounces they will produce over the next 3-4 years.

Stock has a tendency to bottom at around the end of July and tends to move higher into September at least. Also has a period of seasonal strength later in the year as well. Chart indicates the stock is finally showing signs of bottoming. Gold stocks are really oversold this year and are due for a bit of a move on the upside. Gold stocks have started to outperform gold itself.

Covered Call Write. Buy Goldcorp at $36.47. Sell Goldcorp Jan’14 36 Calls at $6.60. Net cost $29.87. Return if called: 22.70%. Annualized return 16.08%.

Attractive management team and assets, low political risk so it is if you were to own a large cap gold stock, this and Franco Nevada would be her top choices. She owns a little bit.

Tier 1 producer with about 2.9 million ounces of gold. Have a very visible project pipeline and a strong balance sheet to fund. Near-term have had a few production shortfalls at Red Lake and their Mexican project. Management is guiding to flat production this year because of current low grade material. I grade is still there but is taking longer to get there.