Colossus Minerals Inc. (CSI-T)

Sold his entire position. Believes there is an outstanding deposit there, but unfortunately previous management was unable to execute on a strategy on budget and on time. As a result, they have built up a fair amount of debt. Have some credibility challenges now. Too many risks.

They have the large Serra Pelada platinum group metals/gold mine in Brazil which is probably 90% complete in terms of getting up and running. Will be producing a lot of high density metals as well as gold. Likes this company.

(Market Call Minute.) Did an issue at $1.60 and it is now $1.18. They finally had to raise money even though it wasn’t expected. It will be up and running later this year.

They are looking to restart a mine in Brazil. It used to be open pit but they are going underground. But they are not doing any feasibility study. He has been on the sidelines with this one. The resource is delayed until 2014. But they are preparing to build a low cost mine that will go into production probably in 2014. It could be potentially a very good mine. He will wait until he sees the mine up and running to get an idea of the life of the resource.

It’s been oversold. Thinks when he has an analyst in place and if they confirm the info they have, then he would be a buyer.

He has this as an “outperform” with a $4 target.

Sold a royalty deal to Sandstorm (SSL-T) for $60 million. They are a 75% holder of the Serra Pelada gold and PGM property in Brazil, one of the highest grade properties in South America and run by an excellent management team. Project is 75% complete so we should be seeing cash flow shortly.

His company has this as neutral with a $3 target.

Extremely high grade gold, platinum, palladium. Stock has been hammered. The question now is, “how is the mining going down there”. He doesn’t have the insights on this. It will be a difficult mining situation. Probably a high enough grade deposit that it works. Too many questions on it for him.

(A Top Pick May 24/12. Up 15.94%.) At a point where they are undergoing a bulk study. Just reached a mineralized zone and will be coming out with the results. Basically an awful lot of upside, which the market has been somewhat skeptical about.

Main project in Brazil used to be a producing mine in the 80's. A lot of indigenous people were mining there but it shut down in the 90's. This company then took over the property. They have a deal with the Brazilian government and the union which represents the indigenous people. Also, did a streaming deal with Sandstorm Gold (SSL-T) a little while ago. He had been Short but once Sandstorm came in, he covered his Shorts. It has continued to decline. There are other names he would prefer. (See Top Picks.)

Sandstorm gold gave them some financing recently. Brazil, open pit mine. Will restart mine and go underground. Doing some initial drilling. Likes that it is a heat bleach, lower capital intensive effort so you will not blow a billion dollars. They don’t have a technical resource and no technical assessment which makes it a higher risk.

Hasn’t been much news coming out of this company. As they get into the ore, you are going to get a lot more information. They are going to be able to drill from underground. They’ll also be getting some bulk samples coming out. Over the next 6 months will be a very exciting time for the company. Fully financed. Will be in production next year.

Management has a fantastic track record of picking projects that will ultimately come into production on time and on budget.