Kinross Gold (K.TO)

(Market Call Minute) If gold goes, then this should go with it. But we need a move in bullion.

In the penalty box. There are better vehicles in this space.

Nervous about this. There are definitely question marks about their Mauritania assets. There is still some proving to be done.

Very cheaply valued right now. A lot of the future value will come from Tasiest, which is in Mauritania. At some point they will be able to figure out how to profit from this project but with all the African geopolitical issues, it is hard to say that this company will have much of a control over the issues. She would stay neutral on the stock.

Did a big takeover that they are paying for now. Doesn’t attract him at this point. Gold prices have ended up the year at highs for the past 12 years relative to where it started the year. There are a lot of questions on how gold will do going forward.

Will have financial results in February but, more importantly, in April or May, they will be giving the market the 1^st real update on Tasiest, their West African project and how they plan to attack this on a go forward basis in terms of production and CapX. Feels the market has been waiting to see what they say they are going to do and how they are going to get there. Would like more clarity before he buys.

In a bit of a trading range since May of between $7 and $11. Right in the middle of the trading range and he hates buying stocks in the middle. Really good support in the current price of around $9. If you are looking strictly at a chart, it is worth a Buy but put a stop loss in somewhere below $9.

End of July to End of September is best period of seasonal strength. Normally as you get close to the end of the year until the end of Feb, there is a secondary period of seasonal strength. You may want to consider something else after that. It is forming a basing pattern. Watch your technicals because it is lining up for a move as early as January.

Gold stocks are cheap relative to gold bullion. Thinks that gold can probably get through $2000. As you depreciate currencies, gold goes higher by default. Valuation is as cheap as he has ever seen it. Good variety of properties. Well diversified. New management is talking a better story in terms of cost management, cost reductions, managing their growth profile.

Appears like it has broken a bit of a downtrend but the longer-term picture might not be so positive. There was a little base at around $9 that was broken. Often what happens with these breakouts there is a test of the neckline which happened in this case. It is trying to bounce off the neck line but not with a lot of conviction. Would probably look elsewhere.

One of those stocks that has been hurt by bad news from Equator and Africa. CEO change and a lot of call for it. That has happened and it may have put in a bottom here. It is still carrying some baggage and so you can do better elsewhere. Everyone who wanted to be out of this one is probably out of it. Wait before buying for it to build a better base. Thinks gold will be closer to $1900 or $2000 in 12 months.

If you are going to own a gold equity he prefers the gold royalties.

Moving up well but down a long way from the highs. Does not interest him now. Started putting in a new mine and found the input costs had gone up. The question is where the price of gold is going from here.

Just when you think it can’t get any worse for gold, it does. He personally thinks this is at a level now where maybe you just hold your nose and buy it. If you are looking out longer-term, and you are patient and you’re risk tolerant, he thinks you can buy some here.

With new management in there the focus is more on profitable growth with the scaling back of projects so they are more profitable. Growth in production in some areas of the world. Completely unhedged.