David BurrowsRed Back Mining IncRBI.TOTOP PICKAug 06, 2009
Mid-cap gold stock with assets in West Africa. Have nice growing production with 280,000 ounces this year and 400,000 next year. No debt. Feels very strongly that the US$ will continue to move lower and gold looks like it is about to break out again to new highs.
Caller wants to replace because she is not happy with Kinross’s (K-T) recent connection. To get something similar, you are looking for something with growth over the next few years. He likes Allied Nevada Gold (ANV-T) and Iamgold (IMG-T).
Kinross (K-T) just put in $600 million to get almost 10%. This is smart money. One of their key assets (in West Africa) is about 5 million ounces. He sees this ability at 10 million.
Focused on gold in West Africa. Have done a good job exploring for new resources and have an existing mine. Recently released some good numbers. Looks a little expensive.
Has been on a tear recently because it is working in a large gold discovery in West Africa. Good for gold exposure on a company that is growing dramatically. Should be trading in the $20 level. Speculative.
Great intermediate gold producer with 2 mines. Potential of producing 1 million ounces annually for the next couple of years. Investing about $22 million this year in CapX, which could take their reserves from 5 million ounces to 11 million. In the region of a couple of majors so could be a takeover target.
Gold in Africa, South America, Surinam and a little in Quebec. Had a nice run like all golds. Prefers Iamgold (IMG-T), which is cheaper on a price to net asset value as well as better growth.
There is a very short list of intermediate producers in the gold industry including El Dorado (ELD-T), Red Back (RBI-T) and Centamin Egypt (CEE-T) and they are very special companies. This has country risk. Stock is probably priced efficiently so you are not getting the benefit.