Guyana Goldfields Inc. (GUY-T)

Gold as a sector he likes. He likes this stock’s recent action where it is heading back up over $5. The chart shows no weakness for it to get up to $9. He would be a buyer of this.

They’ve been really, really good implementers. He would like to see some operating results. However, every surprise that they have delivered to investors in the last 5-6 years, have been good ones.

A few years ago, he was not keen on northern South America, because of infrastructure issues. Geologically it is very similar to West Africa. You’ve got West Africa geology in these greenstone belts, but you are in south America. Time zone wise it really is attractive to some North American companies. People are looking a little bit harder at northern South America. This company’s open pit grades are 1.5-2 grams, and it makes money. They’re are also looking at going underground. He is interested in this area from an exploration point of view.

Gold is an interesting subject these days, because it has sort of fallen back into its old pattern. The market sells off and the golds go up. It’s the go to place if you are concerned about currencies or markets in general. It is really a trading vehicle, not a “buy and hold”. If you are really very negative on the market and the potential of some slowdown in the economic side, some of them, particularly the juniors, have a fair amount of upside potential. From a chart standpoint, the golds have not been looking that badly.

Costs are in the order of $6.50-$7.50. It looks like it is going to work.

Very cheap stock. Re-jigged their IRR, which wasn’t good enough. Took away an expensive shaft that they were going to build. Have gotten it to an area where you have a very high IRR, and ultimately the valuation proposition is excellent. 2016 EBITDA target is $115 million, which should double over the next few years.

(A Top Pick July 25/13. Up 60.76%.) There is a big seasonality trade with gold which he does every year. Starts buying about now. Recently closed an equity deal, and are now fully funded for their mine. NAV is something like $5 a share, and he sees no reason why it would not trade up to this.

(Market Call Minute.) Thinks this is great value. An excellent stock and is cheap.

Large deposit on a large river in Guyana. A flood would have washed out their open pit. They are planning now on going underground on a high grade portion of the deposit.

(Market Call Minute) Loves it. Stock is cheap and feasibility study looks really good. Keep an eye on it.