Barrick Gold (ABX-T)

A leader. He doesn't play too much in the gold space. It's more speculative than what he typically buys. Not on his radar. 

He'd prefer RIO, a low-cost leader in the iron ore space, with copper assets and a nice distribution. You could also look at MDI to play the miners, as it gives exposure to the whole sector. 

Does not invest in gold. Hard to justify investment. Share price has not appreciated in 30 years. Not good for shareholders. Capital allocation not good. Only beneficiary is management who collect salary. 

Expects this to fall 3.5%. Gold is essential to any portfolio. He owns physical gold, not the companies, because the costs of production are rising faster than the price of gold. Expects some gold companies to go bust.

Very large business makes it tough to earn  high rate of return.
Gold prices difficult to predict.
Prefers Franco-Nevada & royalties.
Valuation not very good.

Increase on real returns on bonds is a negative on gold prices.
Gold not as attractive with higher interest rates. 
Would wait 6-12 months before buying (when interest rates are cut).

Likes gold sector, but not ABX.
Gold a strong commodity.
Geopolitical risk & company debt major drawbacks of company.
Prefers other names in sector.

Very supportive of Pakistan gold project.
Technical prospects very good.
Management very good at emerging markets & politics.
Political risk a substitute for technical risk (deposits very large). 
Political risk very high. 

You want to be long gold and silver at the right time, once every 15-20 years, and it's hard to find those times. Free cashflow is harder to come by when costs have been rising. And you have to be right about your bond yields, which have to keep coming down for gold to work. That's probably the way they're going to go. He likes ABX and AEM and owns them, but is not piling in.

Has since sold shares.
Doesn't think chart is good anymore.
Thought it was toppy.
Very interested again, but waiting for shares to fall again.

If you're looking for gold exposure, a reasonable name to consider. ABX results did not impress, and the stock's down. Watch and wait, as the sector's been strong. Interest rate cuts would be negative catalysts for gold names. Enter on a pullback.

An aggressively run company. The gold market is interest now with Newmont buying Newcrest. Owning a gold position isn't bad during inflationary times. The valuation here is reasonable.