Iamgold Corp (IMG.TO)

It could come back. Their costs of producing gold are quite high. This is a great tax loss season for gold.

They sold a Québec mine for $500 million, which was great because their balance sheet was part of an issue. However, they probably sold the only part of the company that was making money. When you look at it, their gold assets really are breaking even at best. A highly leveraged name to gold prices, and they just sold their cash cow. There are better places you can go.

(A Top Pick Sept 25/13. Down 33.33%.) Nothing wrong with the company, other than the price of bullion slipped. Gold has always been a part of his portfolios, and he feels it should be 10% of anybody’s portfolio.

(Market Call Minute) There is worry about geopolitical risk although things are improving. There was also worry about cost overruns.

(A Top Pick Sept 17/13. Down 28.99%.) A year ago this was a sort of defensive position. Had lots of cash on the balance sheet. One of their issues was that their costs were too high. They went through a bit of a turn around to bring down those costs. They haven’t brought down the costs enough. Looking at the sum of the parts, he would think there would be a number of companies that could come and buy up their assets, and break it up for the different assets.

(A Top Pick June 10/13. Down 22.63%.) A recovery in a stronger gold environment is quite large, so he is holding all his positions.

He is inclined to like the gold sector right now. We had lows last fall, and they are much higher right now. The 3-year chart between the stock and Gold (T.TGD-T) shows that the spread is widening, and gold is moving up where this stock is lagging.

(A Top Pick June 10/13. Down 19.99%.) He still likes. Has a strong balance sheet. Stock is cheap. Has tremendous leverage on the price of bullion. Still believes, given the financial situation of Japan, US and a lot of Europe, that gold will have its day big time. Portfolios should have 10% of their holdings in gold.

Has a lot of leverage, because it has been relatively high cost. You really would want the high cost ones if you think gold is going to $5000. He is looking for companies with low cost.

An intermediate gold producer with about 1 million ounces a year. Costs are at the high-end of the spectrum from $900-$950 an ounce. On a cash cost basis you are probably at $1100 an ounce. Not a whole lot of margin at current gold prices. Q1 results were okay, but we are seeing grades drop off at Rosebel, one of their main mines at Surinam. This is one of their core assets. Assets are somewhat mature, so as time goes on, it will get harder and harder to process and extract the gold rock, which will jack up costs over time. He is on the sidelines right now and thinks the fundamental value is around $4.

They have to work out some issues. Not a go-to name for him. Could rally if gold price went up, but not their first name he would buy.

He would not be buying this for capital appreciation on the rebound because their cost of production is much higher than the current price of gold.

Just got downgraded by Moody’s. Have a pretty strong balance sheet, but has been deteriorating with lower gold prices and high cash costs that they have been running with. He has increased his holdings at times where there have been weaknesses. In a higher gold price environment, this company will actually start to make money and there will be a big re-rating on the stock. If you don’t believe gold prices are going up, you don’t need to be here.

(Market Call Minute) Had some disappointments that are now an overhang on the stock.

(Market Call Minute) Hopes it competes to buy ROX gold.