Jason Mayer

Markets. The majority of QE is behind us and not ahead. China – there is some uncertainty of what growth is ahead of them and that has affected copper. Some think the Fed will ultimately reverse course in tapering. But data points regarding the economy have been constructive. As they slow down in China it is not positive for base metals in Canada. It will crimp demand where China accounts for 40% of it. Inventories are at a 10 year high. If copper goes down, stocks will certainly correct further.

He never calls a bottom. It is just a case of doing what the gold price has been doing. They could be shutting down mines and cutting production, but they are a lower cost producer. So this is a fine call in terms of gold, but at this time he would not want to make a call that we are at the bottom. If gold stays down they could shorten the life of mines by not going as deep and therefore cutting costs further.

Have had a rough time, capital cost blowouts and 13+ billion dollars in debt. As gold corrects, the equity will erode at an increasing rate. Costs are about same as G-T but then there is the debt to service on top of that.

For the time being it falls into the category of junior gold explorer. Still has some cash but no one cares about these types of companies and projects. They are bottom of the barrel. Not a bad stock, company or project, but right now it is in a part of the market that is out of favour.

Super cheap company, run by triple ‘A’ management team. Stock has been beaten up and is in a part of the market where they don’t generate enough growth for growth investors but don’t pay a dividend. Would not buy it here but would not sell. He is not sure on the timetable for their transition from a corporate basis.

If they can deliver then it is relatively cheap. You are trying to catch a falling knife. A number of issues ramping up their mine. The second half of this year will tell you a lot about where this company is going. Guidance is back-end weighted. Only time will tell. Balance sheet is in decent shape. They will be a survivor. Needs to see them hit milestones before going in.

Brought on a new CEO and management picture is a clear one. Should see a firm strategic direction for the company in the next couple of months. They are pursuing a more liquids rich strategy. He is a believer in Nat Gas over the next 12 months so this is one you want to buy.

Another company that was completely sideswiped by gold prices. They had some management changes and took some significant write downs such as West African project. Probably some more write downs in the near future. Management acting on a new approach of capital discipline.

(Top Pick Jul. 19/12, Down 2.76%) Only junior left in the area but not convinced on the timetable for an ultimate take-out.

(Top Pick Jul. 19/12, Up 72.69%)

(Top Pick Jul. 19/12, Up 22.11%)

Got washed out yesterday because they announced a delay in timing of their strategy. They got an unsolicited bid on an interest in a flagship asset. He is a bull on uranium.

Liquid rich Nat Gas play. Made the most impressive discovery in Alberta in a very long time. They are taking the cash flow and applying it to another project. You are continuing to see the economics improve as they figure out how to drill these wells. If we are lucky it could be taken out for $45-$60 within the next year.

Very low cost, built their own gas plant to service it. Scale to attract a potential sovereign or foreign bidder. The balance sheet can be supported by the business even if it is not the most attractive.

Markets. Currently, he has the most favourable outlook on Nat. Gas. Last year it bottomed at $2 and is at $4 now with considerable upside from here. There are vast amounts out there but it is a question of at what price is it economically viable to extract it. Recently, US Nat Gas companies have been performing better so for the time being he would look at the Canadian companies. Gold – he subscribes to the longer term thesis that with central banks racing to debase currencies it will result in inflation which drives gold. There was some talk in the fed speech of withdrawing QE.