Lundin Mining Corp. (LUN.TO)

(A Top Pick Aug 20/13. Up 37.86%.) This is heavily Shorted and disliked, which is a perfect setup if you are a contrarian. Still not too late for this.

Surge Energy (SGY-T) or Lundin Mining (LUN-T) for a long-term hold? He is starting to look at the copper plays, and he has always liked this company’s management. This company has an $8 target on this. These are "different two animals", and he would suggest you go back to asset allocation. With this, you would have so much in energy and so much in base metals.

Thinks they will acquire Candelaria, and will have access to the money that they need. Feels the financing associated with this will probably flatten the stock out over the next month or 2, but feels it is a transformative transaction. The Eagle mine is coming into production, and the cash from this along with the cash from copper/zinc operations in Europe combines to give this company unbelievable financial flexibility.

Hudbay (HBM-T) or Lundin Mining (LUN-T) for the zinc? He likes them both, and likes very few mid-tier Canadian mining companies. Of these two, his preference would probably be Hudbay. This one is a careful company. It just acquired a very interesting, maybe limited life, high quality asset in northern US.

Likes it in terms of production numbers. People are moving out of some of the other base metal names and into this one. Likes the management team.

Hold based on the turn on base metals.

(A Top Pick Aug 2013. Up 25.82%.) (All 3 Top Picks are 1) out of favour 2) high Short position and 3 ) displaying positive relative performance. An ideal setting for a Short Squeeze.) He was a little early on this pick. It was out of favour, as copper stocks are. Has a 11.3% Short position on it. Relative Performance is widening against the TSX.

Kind of hits all the right spots. Copper is the majority of its EBITDA, but you also get the nickel leverage. Their Eagle mine in Michigan is coming on next year, which will take their nickel exposure to about 30%. You also have nice, steady European operations where you get about 15% zinc exposure, which he feels will be a great commodity sometime in the second half of 2015. This hits the three major base metals in terms of exposure.. Have adjustable CapX exposure. A cash flow machine right now, but there will be expansion phases.

(A Top Pick Aug 20/13. Up 22.76%.) The market is telling us that the global economy is going to recover and going to do okay. If that’s the case, copper is going to do okay.

Sell or Hold? You always want to know why you bought a stock. Did you buy because you thought copper prices would go up, or that the company maintained a conservative balance sheet or had exposure to zinc and some nickel? Regarding fundamentals, copper is probably neutral, but zinc and nickel are looking pretty good and the company has executed well. He would take some profit, but continue holding it as a core position until the cycle plays out.

Produces primarily copper, zinc and lead. A lot of what is going to happen in the base metal sector is going to be dependent on the hope for global recovery. When Canada burst out of the stocks on Jan 2, everything kind of came up because there was a general hope of a nice global recovery in global growth, which would carry the metals higher. That has come under some cloud lately because of issues in China. Fair Market Value is a fair amount higher than its current price, but right now it is just balancing. Good potential but……

You have to be comfortable with the outlook for copper and zinc, which he is, because global growth is still in place. This has had a decent move off the bottom. Likes their Eagle acquisition they did last year, which was immediately accretive to earnings. Earnings are coming back now.

Likes it. Able to pick and choose assets. Mines they currently operate have a very low cash cost.

The trouble with this company is that it is in base metals which have been dragging a bit. As China, India and all these countries becomes more consumer oriented, these are good companies to own and hold for the long haul.

This group is hated and under owned and there are not a lot of these copper producers around. Thinks the stock is being accumulated.