Paul VanEeden
Linear Gold Corp.
LRR-T
HOLD
Jan 16, 2007
Continue to come out with good results from their Ixhuatan project in Mexico. Has a suspicion that we haven't seen the last of the good results from this. Good management.
Made a very nice discovery in Mexico. Stock ran up but has been pulling back quite severely. If copper falls, gold prices might fall as well, and if so, this is on his list as a Buy.
Have done a tremendous job at their Mexican project with some very good discoveries. Stock is dropping because of metallurgical questions that have to be answered. On his radar screen.
This should not be affected by the recession. Picked stocks that have limited downside. Should have a lot of long term upside. If gold price goes up this company should do well.
Gold. Feels the down side is very small. Have sold their assets to Kinross (K-T) to earn 70%, so this company will keep 30%. $70 million market cap and have $30 million cash. Also have other assets they are exploring. Risk/reward ratio is very attractive.
Very disappointed in how the stock has been acting lately in the recent gold bull market. Almost half the market cap is cash. Also have a deal with Kinross (K-T), which could end up with $150 million for them. Risk/reward is good.
Gold. Almost half their market cap is cash, so downside is protected. Letting Kinross Gold (K-T) earn in on their main property. If the project goes to production, Kinross has to pay a huge amount of money and this company gets $150 million on top of their existing cash..
(A Top Pick Nov 19/07. Down 68%.) Kinross (K-T) is joint venturing their million-ounce project and if it goes ahead with the mine, they have to pay Linear $100 million of additional money. Have $25 million in cash. If you own, continue to Hold.
Located in Mexico. Topography and social issues. Deposit is all right but not great. Doesn't know what the metallurgy is. Big system and likes it for its size potential but doesn't think much of it so far. Acquired a small gold project that averages 1.2 g but doesn't excite him.
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