Rio Alto Mining (RIO-T)

Zinc, copper and Iron Ore are all kind of hot recently. They have been under pressure for a year or two. You have to believe global growth will continue. When you make some money, you should get out. He owns Hud Bay.

The merger made sense. He likes both management teams. This is one of the places to be in the precious metals space.

This is a controversial name, but he thinks they have executed fairly well. He would suggest that it is low risk, and he wouldn’t describe it as a pick for a portfolio if he didn’t know the investor very well. This is not for the faint of heart.

It was very nice to see the acquisition of Sulliden (SUE-T), because so many times you see gold companies making mergers just for the sake of getting bigger, rather than actually creating some real synergies. This has created a company that now has 2 key assets. They are within close vicinity and will have some benefits. Expects there will be increases in the multiple people are willing to pay.

Has this as a sector “out perform” with a high level of risk of volatility. His target is $3.80. This is commodity driven. Well managed company.

(Market Call Minute.) Has increased his holdings in this one.

China is not going to be such a big buyer going forward. Emerging economies are going require commodities. Prefers BHP, which is a core holding. Better balance sheet and dividend profile. You will be ok in 3 to 5 years.

Like this one a lot. Very easy operation to mine. Good margins. Good deposit and it is getting bigger.