Kinross Gold (K.TO)

Is at an entry point. Gold stocks will move with gold margin. Executed well. Managing balance sheet well. Pushed out projects that are not accretive to business. Very little growth over next few years. They could rebound very well, so hold.

Not only do they have exposure to the gold price, but they have not made astute acquisitions in the last few years. She feels you should have some gold exposure, but prefers Goldcorp (G-T) where she can see a clear path to their production and growth over the next 4-5 years.

The strategy that they have had to live with, was acquiring inexpensive gold optionality in the gold market through remote places and are stuck with that strategy. They are going to really struggle for a number of years.

Has broken substantial declining trends. Bottomed in June and is on a new trend. This stock gains an average of 60% during its seasonal strength from July to October.

(A Top Pick May 13/13. Up 10.95%.) Had been doing some bottom fishing. Gold sector has been really hit. This is in a lot better position than a lot of other gold miners. Have a good cash position.

Finds that management just messed up a bit too much on performance. Still have a number of issues to resolve. His 1^st choice would be GoldCorp (G-T) followed by Agnico (AEM-T). If you own, he would switch to GoldCorp.

There were reports a few months ago that said companies should give the actual cost of getting gold out of the ground. If he is going to buy gold, it will be bullion. Feels there is just way too much risk with gold companies.

Thinks the worst is over for this company but he would not be a buyer. Many of the seniors, including this one, are going to have to restate their reserves and resources in the face of a $1250 gold price as they are carrying them on their books at a higher price.

Had a $3.2 billion write-down. Gold stocks have been a tough place to make money generally in the last year or so. This one in particular has had one landmine after another and it is a legacy from the previous management. Have made a number of acquisitions that turned out not to be so good.

2.9% dividend but he wouldn’t look at any gold company’s dividend to be particularly safe. These are high users of capital, gold prices have fallen considerably and they are taking big write-downs and have debt on their balance sheets. Doesn’t see how gold goes up considerably.

This is in the camp like Barrick (ABX-T), where it has a lot of leverage to the gold price on the upside. If you believe in $1400-$1500 gold, this should go to $7-$8. Their big African mine has been problematic right from day one and the market is not willing to pay in advance and costs are not low.

Took some hits for acquisitions they made over the years. For someone who is long term, they could look at it.

This company was put in the penalty box because of prior and very expensive acquisitions that they are having to take huge write-downs on. Gold itself has been on a downward trend. You have to have a long-term view on gold and if you think gold is at the end of its decline, this is a good time to start picking at gold stocks.

Another company that was completely sideswiped by gold prices. They had some management changes and took some significant write downs such as West African project. Probably some more write downs in the near future. Management acting on a new approach of capital discipline.

Just announced that they are leaving their Ecuador interests. He is wary of golds and only wants to own ones that have free cash flow at $1300 gold or less and there are only about 3 or 4. This does not fit in that category and will need $1500-$1600 gold to actually have free cash flow and be sustaining.