Centerra Gold Inc (CG-T)

They have a large, high-grade deposit but their geopolitical risk is very high. In recent years, they've been buying Canadian assets, till they now have a 55% NAV in Canada. Potential turnaround, but watch their balance sheet and generate free cash flow from their Canadian assets.

Very cheap. There is no technical or financial risk except for political risks.

It has been taken to the penalty box as a consequence of its mines being in places that people regard as geopolitical risky. Company has done an excellent job of acquiring assets and putting them into production and producing them efficiently. Selling at a discount to Book.

Trading above EBV -3, which is ‘coming out of the blue’. Model price is $10.62. He thinks it will go higher.

Central Asia is difficult. He likes their balance sheet.

A well run company with technical and political challenges. He likes it and the way it operates. He finds technical risk hurts him more than political risk.

Company specific issues hurt them more than others in the space. Risk/reward is quite attractive right now but you have to tread carefully. In a year or two it could be attractive but there will be volatility. They have cost issues and problems with some of their mines.