Mandalay Resources Corp. (MND-T)

They had three working mines, now two. When you have a major catastrophe in a mine, people often jump out. This company has been around for years and years. That shows a certain staying power. He likes to invest in companies that have been around for at least 10 years. He doesn’t know their financials, but they have managed to stay around, which suggests that they are likely to stick around.

He likes this company. It is very difficult to operate one small mine, and even more difficult to operate 3 small mines. They have a durable competitive advantage in being able to operate small high grade mines profitably.

Management is refreshing. They look for return and for what value they can add. Usually with the assets they purchase they add value with their technical ability. They also have a good philosophy with respect to wanting to provide returns for their shareholders. Loves their philosophy and the way they add value to assets. They buy them cheap and then they add value so that their value accretes to their shareholders.

If you have gold assets in good places, you should be in good shape. Doesn’t know this company that well, but sounds like a decent play, so he would hang onto it.

An absolutely top quality team. First-class implementers. Stock has had a reasonably good run. It might be a safe place to hide out right now, but if you own it now, you need to be prepared to own it for awhile while it consolidates the gains that it has enjoyed, and while it puts the rest of the Elgin assets to account. 3% dividend yield.

One of the best management teams out there. Instituted a 2.5% dividend. Very good at Buying cheap. Good miners and operators. However, he would love to see a mining company that has a marquee asset. Right now this has 3 decent projects, but doesn’t have that marquee that he is looking for. $1.35 would be quite reasonable.

Was a favorite name at his previous employer. They continue to come through with higher production and lower production costs. It is rather illiquid for him with the fund he is running.

Fantastic silver company. Very well run. Assets are in Chile and Australia. Production is roughly 3 million ounces a year in silver and 40,000 ounces in gold. Probably generates around $40 million a year in free cash flow which he really likes. On a relative to enterprise value, it has a yield of between 10% and 15%. 3.3% dividend yield. Q1 came out with very, very strong numbers. The asset base is positioned to grow, so we should see results continue to strengthen throughout the year.

(Market Call Minute) Pays a dividend. If you like the gold sector it is worth buying.

Key thing about this company is management. Good management. Pays a nice dividend. Have 2 assets, one in Australia and one in South America. As a portfolio manager, he likes big, world class assets because it is very tough to make money with small assets. These guys are good operators and have done a great job with what he would consider 2 “okay” assets.

Small company with the risks associated. These people have executed flawlessly. Implementation skills are unmatched among small miners.

One of his favourites. Asset quality is good. Free cash flow is good and dividend. They bought an undeveloped asset in Chili – a few years out. But they don’t have to come to market for funds to develop.

Silver. One of the companies that under promises and over delivers and this is one in the resource sector that he really likes. Production continues to increase. If he were to own one silver company that has a lot of upside, it would be this one. 3.89% yield.

His largest weighting on the resource side. Always under performs and over delivers. Put on a little dividend. The last one he would sell.

Hasn’t seen management for a year or two. Likes their Australian silver operations, which has very thick veins. The mine shows a very good cost profile. Management has a track record of buying very good assets. However, silver has come down to the $19-$20 level where she expects it will stay for a long time. 4.2% yield.