Tahoe Resources (THO.TO)

This kind of gives you the best of both worlds, silver and gold exposure. It has been able to acquire single asset companies or single assets, originally with their asset in Guatemala. Half of its NAV is in Peru with 2 gold projects. Their Lakeshore (LSG-T) acquisition was another way to diversify geopolitical risks. Dividend yield of 1.99%.

A very high quality silver company. However, the balance sheet is getting a little skinny. If you own, continue holding, but use a trailing stop.

It is going to go up substantially from here.

Chart shows it made 2 bottoms, one in November and then tested it again in January. That is followed by a nice trend line going up. On a longer term perspective there are probably going to be some levels it runs into. Gold is in a seasonally strong period now and until the end of May, and then it starts again in July and through until October. (See Top Picks)

This hasn’t been around long enough to give a seasonal analysis on it. Technically the chart is showing a nice base pattern, and in the last few days it broke above the base pattern, came back to the trading range, and is now starting to head higher again. Looks very attractive at current levels. Dividend of almost 2%.

Their silver deposit in Guatemala is one of the best deposits out there. Took out 2 companies in Peru, so got into the gold business. Their Rialta deposit is good, and are building the 2^nd one, which he feels is going to work out as well. (Joe Mazumdar) They then bought Lakeshore, which is an underground deposit, with a lot of capacity with respect to the plant and a lot of upside with respect to exploration. Tahoe provides the cash flow to develop that faster and organically, which is really the big boost for that district.

Very high quality company and deposits with great management. You are buying a premium company and paying up at the beginning of the cycle is a good thing.

He likes the new company. It has emerged as an intermediate producer, $3 billion market cap, and is now half silver and half gold. There is free cash flow coming from the Escobal mine in Guatemala, the premier mine in the silver space. A 20 year mine life and best in class cash costs. The problem is, it is in Guatemala so they diversified their portfolio by acquiring Rio Alto giving you a portfolio and a company that is far more investment-grade. Great company with a great platform for growth. Management team and balance sheet that is best in class.

Silver. He does not like commodities. Chart shows a long downtrend which might be breaking. It is probably a little early to tell. There were some higher lows, but there is a succession of lower highs. If it can break up through that gently sloping downtrend, it might be in for a bit of a run into the $20 area. He would like to see it break first.

One of the newest silver mines. Have done a great job of ramping up. Will produce roughly 20 million ounces this year and make lots of free cash flow. With the money, they are going to start to initiate a dividend in Q4. Will be buying back some of their debt. Will also be putting an expansion into the mine, which will be very cheap to increase 20%-25% in throughput.

(Market Call Minute.) Eventually a dividend payer. Goldcorp (G-T) is a big owner, which could easily have sold it, but are holding on for the dividend.

(A Top Pick March 4/13. Up 54.17%.) Assets are in Guatemala. Company has done a great job on the start-up and it is running very, very well.

He is caution with the short term moving averages. Will trade from 6 months to a few years. With this chart there is no trend established yet. Instead find support at $23, make sure it holds, and hopefully it bounces off of that and then it should be fine.

(A Top Pick Oct 30/12. Down 13.07%.) One of the most successful mine builders in the industry. Have just gone into commercial production in Guatemala and are shipping concentrate on a daily basis. Doing a bit of tinkering and getting recoveries up in certain areas. Will be producing about 19-20 million ounces of silver.

(Top Pick Oct 30/12, Down 11.93%) About to ramp up production. Going to be one of the biggest silver mines on the planet. They are doing everything right. Low cost producer. He still likes it.