Osisko Mining Inc (OSK.TO)

No dividend but will generate lots of free cash in the next year and a half. They are in production and so don’t need to go to capital markets. There is an opportunity here. He has G-T because of the dividend.

Gold stocks got a big jump yesterday and it is because rates are not expected to go up as much as people thought. Gold’s case is getting weaker and a small exposure is good but he owns and prefers AEM-T instead.

Reality is that most of the drop is linked to the drop in price of gold. Longer ramp up of mine than they expected, so the key is for them to pricing back the grades to what they expected. Higher risk when it is all one asset.

Team has executed fairly well but they disappointed the market with regards to total cost of production, relative to their earlier projections. The whole lustre is off the large, low grade, Canadian deposits. Has no debt. When the gold price moves, this one will lead the charge.

Has a good mine in Quebec. Market did not like a resource company making an acquisition. Will be a survivor. This one is fine. Gold is tough. The correct price of gold deferrers from person to person. If gold is a commodity $1200 may not make sense. Mines cannot be developed for less than $1300 an ounce. Gold should go higher if there is a shortage of supply, but if it is a currency, that could be different. It is traders pushing buttons.

(Market Call Minute.) Hasn’t liked it for a while but does like it now because it has come off so far, so fast.

If they can deliver then it is relatively cheap. You are trying to catch a falling knife. A number of issues ramping up their mine. The second half of this year will tell you a lot about where this company is going. Guidance is back-end weighted. Only time will tell. Balance sheet is in decent shape. They will be a survivor. Needs to see them hit milestones before going in.

Look for it to move higher into July. Covered Call written out of season? He does not recommend them out of the period of seasonal strength.

(Top Pick Jul 26/12, Down 46.63%) He is doubling down on it. Went through teething pains. Throughput has doubled. Good, safe jurisdiction. 15 times PE. Will go to 10 times PE as they ramp up. May actually initiate a dividend.

(Estimated P/E Ratio: 14.95) Best name in this space. Ramping up production towards steady state. Cash costs are going down. Great potential.

Selling is overdone. Likes the balance sheet. Does not like low grade deposits so he doesn’t own it.

(A Top Pick June 11/12. Down 30.9%.) Sold her holdings. Had some restarting issues and some Québec issues about developing in the high-grade area.. She thinks a lot of that is behind them. Very cheap at this level. In the gold space, she is very selective and this is one of a higher cost producers. If you own, consider moving over to Yamana (YRI-T), a low-cost producer and a much more sustainable model.

(Market Call Minute.) One day, it will go up but everyone hates the golds right now so he wouldn’t expect much from it right now in the short term.

Big gold mine in Québec. Down like all the other gold stocks. Good management. Production should continue to increase. His company has this as an outperform. $8.50 target.

Everything that could go wrong has gone wrong. They made some acquisitions. Lack of visibility as to how the two projects will fit into things. It is beaten up so much at these levels that you are getting it at really cheap levels here.