Roxgold Inc (ROXG.TO)

A brand-new gold producer. They are based in Burkina Faso. The mine has started. It is trading in line with the junior producer group at about NAV, so doesn’t think there is a whole lot left, given that they are still going to be ramping up with all the inherent risks. Prefers Semafo (SMF-T) which also operates in Burkina Faso. Has a much longer track record and have established themselves as premier mine builders and stewards of value in creating free cash flow.

About to start mining in Burkina Faso, West Africa. Gold is back and exciting, and Burkina Faso is back and exciting. Burkina Faso is mining friendly because there is not a lot of other stuff going on, and they can get them permitted and build them on time and on budget. He can see this stock getting above $1 in a fair gold market over the next 12 months.

(A Top Pick Oct 23/14. Down 8.57%.) Gold. Pretty much at his cost on this. Was looking for something that was interesting, low cost with a really high grade mine going into production. He still wants some exposure to the gold market.

Currently producing gold, but not up to nameplate capacity. Have done a reasonably good job of bringing in a mine in West Africa, which is not an easy place to be in production. Not a large mine, but the grade is attractive and thinks they will generate reasonably good free cash. He is not a current buyer.

(A Top Pick Oct 23/14. Down 12.86%.) This is going into production in Burkina Faso in the next 12 months. It was a way of having a gold investment when the gold market was on fire. A sort of way of hiding and playing defence and not lose money. Very low CapX costs and operating costs.

(A Top Pick March 4/14. Up 15.87%.) Sold his holdings in Oct/14 when there were political problems in Burkina Faso. Good high grade deposit that they are moving ahead with and it is fully funded. Good project. If you own, continue to Hold.

(A Top Pick March 4/14. Down 7.94%.) Everybody would like to build a gold mine, but it is a very hard thing to do. This company has all the pieces in place, and hopefully next year at this time they are producing gold in West Africa.

(Top Pick Mar 4/14, Down 7.94%) He sold. If you are going to buy it you have to follow it and when things go wrong you have to sell. If he sees political problems he gets out. It is a good, high grade deposit and a good project. In retrospect he should have held on.

Has done an extremely good job. It is a nice deposit. At the current market cap, it is probably fairly priced, rather than cheap. He doesn’t see the deposit getting any bigger, nor anybody taking it out this year.

He always likes to be in the gold space, but it has been hard recently. This is a great way to stay invested in the space. These guys have raised their money and should have the mine in production within 18 months.

High-quality deposit and very good grade. It’s going to make money. He would suggest that after a 100% run in 12 months, the stock needs to digest some gains. Looking out longer, it is going to be a bit gold price sensitive. It really depends on your patience and duration and your feeling towards the gold price.

In the last few years he has been focusing on high grades and safe jurisdictions. This one is a very high grade deposit. CapX is going to be about $100 million to get it on line. Feasibility and IRR numbers are absolutely spectacular on this project, so he very much likes it. Burkina Faso is a reasonably stable place, but he would suggest you diversify your risks by diversifying into different jurisdictions.

Political risks? As a portfolio manager, he has to diversify his risks. Tries not to put too much risk in any one country. Looking at Burkina Faso, there is some risk, but doesn’t think it is high level, but you have to be cognizant of it. There are some elections coming. Current Prime Minister, who has been in place since 1986, will be losing his chance to run again unless they change the rules. This company has a very high grade project and is trading very cheaply. If he has 3%-4% holding in this country, he is fine with that.

Simple, high grade, high margin in a politically stable location. Good recovery and low cap-X to build it. Feasibility comes out later this year and then it could be an acquisition target.

(Top Pick Mar 5/13, Up 28.57%) He got management shifted out. Once he put his money in at this level, he was in permanently. It was high grade and unusually low cost. High quality resource at surface. Nothing exciting, but so high grade. You are buying it at such a cheap price. The jurisdiction is such that you can build a mine in relatively short order.