Rick Rule
Member since: Mar '05
Pres. & CEO at
Sprott USA
Sprott USA
784 Opinions
Latest Top Picks
(A Top Pick Mar 05/19, Down 11%) He's recommended this many times. He's VERY long Ivanhoe. They mine copper, zinc, platinum and palladium. But a slowdown won't be kind. It's well-funded by Chinese and Japanese investors. They have three world-class mines. You should continue to hold this.
(A Top Pick Mar 05/19, Up 11%) Very very well-run and well-financed. Carries fine assets. It's a great small-cap miner.
(A Top Pick Mar 05/19, Up 92%) He betted that their west African mine would be high-quality and reasonably successful. They're ahead of schedule and on budget.
It's a sum-of-the-parts story with three moving parts. The knock on it was they always needed to finance, but they financed. He likes their assets, including a joint venture with Barrick, which is worth PG's market cap alone. Their Ontario and Mexico assets are extraneous and will likely be sold. (Analysts’ price target is $3.93)
Lots of zinc and silver. Boasts high-quality people and deposits, but it's in Bosnia which has a poor mining code. But this could be a tier-one deposit that he's counting on. This is his exploration play. (Analysts’ price target is $2.12)
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Opinion
Expert
Chart
COMMENT
COMMENT
March 2, 2020
Gold's sell-off Friday, why? Some players with margin debt were speculating in gold, or had gold among other assets in leveraged portfolios. When margins calls hit, the sell decision is often made by the credit officer or margin clerk, not the investor. Also, gold is EXTREMELY liquid. Together, this encourages selling. He expects gold to do well if volatility is high--people buy gold out of fear. Also, gold reacts to people's faith in the purchasing power of the US dollar as expressed in the US 10-year treasury which already returns less than inflation.
Show full opinionHide full opinion
Gold's sell-off Friday, why? Some players with margin debt were speculating in gold, or had gold among other assets in leveraged portfolios. When margins calls hit, the sell decision is often made by the credit officer or margin clerk, not the investor. Also, gold is EXTREMELY liquid. Together, this encourages selling. He expects gold to do well if volatility is high--people buy gold out of fear. Also, gold reacts to people's faith in the purchasing power of the US dollar as expressed in the US 10-year treasury which already returns less than inflation.
HOLD
HOLD
March 2, 2020
Did problems with their Fosterville mine prompt Kl to buy Detour Gold? Yes, there's speculation about those reserves. Detour shareholders complain they didn't get paid enough while KL shareholders object to the low quality of Detour mines. He believes bigger companies are better--they're more liquid with lower cost of capital in a capital-intense business. KL will go through some rocky times until the market adjusts to the new reality of KI. !2-18 months from now, will be forgiven and KL will be a darling again.
Did problems with their Fosterville mine prompt Kl to buy Detour Gold? Yes, there's speculation about those reserves. Detour shareholders complain they didn't get paid enough while KL shareholders object to the low quality of Detour mines. He believes bigger companies are better--they're more liquid with lower cost of capital in a capital-intense business. KL will go through some rocky times until the market adjusts to the new reality of KI. !2-18 months from now, will be forgiven and KL will be a darling again.
precious metals
BUY
BUY
March 2, 2020
He's owned this for two decades. ALS has been weak lately because a lot of its cash from royalties from coal mines. Alberta suspects coal gets backed out by natural gas, which means ALS's free cash flow from that gas will decline in the next five years. This stock is still very cheap based on free cash flow and is in great financial shape. A lot of cash is smart in this volatile market
Show full opinionHide full opinionHe's owned this for two decades. ALS has been weak lately because a lot of its cash from royalties from coal mines. Alberta suspects coal gets backed out by natural gas, which means ALS's free cash flow from that gas will decline in the next five years. This stock is still very cheap based on free cash flow and is in great financial shape. A lot of cash is smart in this volatile market
precious metals
DON'T BUY
DON'T BUY
March 2, 2020
Political risk? There's less than people think. Papua New Guinea is a frontier market with corruption, but the government has treated mining fairly well--without mining, PNG would have real problems. THE KNT deposit is a fine discovery. But KNT is fully priced as a result.
Show full opinionHide full opinionPolitical risk? There's less than people think. Papua New Guinea is a frontier market with corruption, but the government has treated mining fairly well--without mining, PNG would have real problems. THE KNT deposit is a fine discovery. But KNT is fully priced as a result.
Mining
DON'T BUY
DON'T BUY
March 2, 2020
Its BC nickel play. Doesn't like GGI. Last year this was a darling stock, but their drill holes haven't impressed him.
Show full opinionHide full opinionIts BC nickel play. Doesn't like GGI. Last year this was a darling stock, but their drill holes haven't impressed him.
Mining
COMMENT
COMMENT
March 2, 2020
He bought it too early. The dividend is not sustainable if the price of oil remains at $45 per barrel, but even if they cut it in half, it would still be a good dividend. He owns it because he feels Canadian oil is undervalued and this is due to our politics. The sooner that politicians realize that Canadian runs on oil--and Quebec enjoys massive transfer payments because of oil--then the sooner oil companies will like this will do well.
He bought it too early. The dividend is not sustainable if the price of oil remains at $45 per barrel, but even if they cut it in half, it would still be a good dividend. He owns it because he feels Canadian oil is undervalued and this is due to our politics. The sooner that politicians realize that Canadian runs on oil--and Quebec enjoys massive transfer payments because of oil--then the sooner oil companies will like this will do well.
oil/gas
STRONG BUY
STRONG BUY
March 2, 2020
He's long owned this and knows the owner. The recent market sell off--and in this stock--has been spectacular. This is a wonderful speculation, not an investment. A fine small-cap precious metals stock.
Show full opinionHide full opinionHe's long owned this and knows the owner. The recent market sell off--and in this stock--has been spectacular. This is a wonderful speculation, not an investment. A fine small-cap precious metals stock.
Mining
COMMENT
COMMENT
March 2, 2020
He likes small producers, because he predicts more M&A in this segment. M&A which increase liquidity in a company and stock
Show full opinionHide full opinionHe likes small producers, because he predicts more M&A in this segment. M&A which increase liquidity in a company and stock
Golds
BUY
BUY
March 2, 2020
Short-term for copper is not good, given all this volatility, but longer-term their deposits of that quality are superb. Can they get a road built to the mine? He thinks it will, given the politics in Alaska and among First Nations people there. After this year, the copper price should rebound. TMQ will generate a lot of free cash flow for a long time.
Show full opinionHide full opinionShort-term for copper is not good, given all this volatility, but longer-term their deposits of that quality are superb. Can they get a road built to the mine? He thinks it will, given the politics in Alaska and among First Nations people there. After this year, the copper price should rebound. TMQ will generate a lot of free cash flow for a long time.
PAST TOP PICK
PAST TOP PICK
March 2, 2020
(A Top Pick Mar 05/19, Down 11%) He's recommended this many times. He's VERY long Ivanhoe. They mine copper, zinc, platinum and palladium. But a slowdown won't be kind. It's well-funded by Chinese and Japanese investors. They have three world-class mines. You should continue to hold this.
Show full opinionHide full opinion(A Top Pick Mar 05/19, Down 11%) He's recommended this many times. He's VERY long Ivanhoe. They mine copper, zinc, platinum and palladium. But a slowdown won't be kind. It's well-funded by Chinese and Japanese investors. They have three world-class mines. You should continue to hold this.
Mining
PAST TOP PICK
PAST TOP PICK
March 2, 2020
(A Top Pick Mar 05/19, Up 11%) Very very well-run and well-financed. Carries fine assets. It's a great small-cap miner.
Show full opinionHide full opinion(A Top Pick Mar 05/19, Up 11%) Very very well-run and well-financed. Carries fine assets. It's a great small-cap miner.
Mining
PAST TOP PICK
PAST TOP PICK
March 2, 2020
(A Top Pick Mar 05/19, Up 92%) He betted that their west African mine would be high-quality and reasonably successful. They're ahead of schedule and on budget.
Show full opinionHide full opinion(A Top Pick Mar 05/19, Up 92%) He betted that their west African mine would be high-quality and reasonably successful. They're ahead of schedule and on budget.
Golds
BUY
BUY
March 2, 2020
Every investor should own some gold and silver like 5%, and most own none. This is an easy way to do it. You don't have to own the physical bullion. Disclosure: he works for Sprott.
Show full opinionHide full opinionEvery investor should own some gold and silver like 5%, and most own none. This is an easy way to do it. You don't have to own the physical bullion. Disclosure: he works for Sprott.
Golds
BUY
BUY
March 2, 2020
Well-run and financed with good assets, and it's way way oversold. Had a nice new discovery in New Zealand. It seems their political problems in the Phillippines will soon be resolved. This cheap now.
Show full opinionHide full opinionWell-run and financed with good assets, and it's way way oversold. Had a nice new discovery in New Zealand. It seems their political problems in the Phillippines will soon be resolved. This cheap now.
precious metals
BUY
BUY
March 2, 2020
Barrick should be every investment-grade portfolio. It's such high-quality, it may not outperform the index. It's the biggest, most liquid and highest-quality gold company. General investors will start with Barrick.
Show full opinionHide full opinionBarrick should be every investment-grade portfolio. It's such high-quality, it may not outperform the index. It's the biggest, most liquid and highest-quality gold company. General investors will start with Barrick.
precious metals
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