N/A
Fairly good environment for gold however, the trading pattern of gold for the last 12 months has had an enormous amount of institutional money investing in hard assets (metal) as a hedge against the US$. Copper, zinc and nickel doubled. Gold went up about 55%. Concerned about base metals, because if the economy is moderating it will mean lower demand for base metals. Question; If metals drop, will gold be dragged down as it was dragged up with base metals?The other side of the story is if there is pressure on the US$ and it drops, everything priced in US$ goes up and gold could go up. He believes in the latter.
TOP PICK
(A Top Pick May 1/06. Down 30%.) One of the best-managed exploration companies in the world. Likes grass roots generative discovery teams. Good price.
TOP PICK
(A Top Pick May 1/06. Down 35%.) Superb management. Focused in Brazil.
TOP PICK
(A Top Pick May 1/06. Up 10%.) Morphing into a financial business. Have 0.3% of a smelter on Inco’s Voisey Bay, a joint venture in uranium exploration, a copper/gold deposit and currently doing a feasibility study on a new refinery in Labrador.
DON'T BUY
Likes the management. Have some ground staked in the James Bay area. Initial results were not great and the stock took a beating. Not excited about any of the James Bay area plays.
WEAK BUY
Monster gold deposit in Romania. A lot of resistance has hampered their progress. Also have to acquire 1000 homes and government buildings for surface rights in order to develop the mine. They have only acquired half.
BUY
Their Ecuadorian properties are a far more exciting than its Newfoundland assets. Exploration costs in Ecuador are being funded by another company.
WAIT
Their deposit is very exciting. There is a huge silver resource in Corani, Peru. The trouble is, it is remote and at a high altitude and the grades are low. Would like to see what impact the altitude will have. Too early.
DON'T BUY
Lost their court case to Aquiline (AQI-T) but immediately appealed. Not sure that they will win. Wouldn't bet on this.
DON'T BUY
Won their court case, but there is an appeal. If you want to buy, wait for the dust to settle.
DON'T BUY
Bought the rights for 4.75 million ounces of production for 20 years for $285 million. For every $1 increase in silver, the internal rate of return goes up by 2%. A very good deal for them, but no leverage for the investor as the market cap equals the transaction.
BUY
Feels that exchange traded funds for any of the commodities are buying investments. Very convenient and liquid. If all you're trying to do is preservation of capital, then this is fine.
DON'T BUY
Made a phenomenal discovery. On the last set of drill results, sold his holdings as the grade might diminish to the north and might not increase at depth. Too early to tell. Easy money has been made.
DON'T BUY
Their property in Alaska started off fairly low grade, but large deposit near surface. Then discovered an underground deposit to the east with a higher grade. At $3.50 copper this discovery is exciting. Doesn't own because he is not bullish on base metal demand and is not buying base metals.
BUY
Excellent geological team in creating new projects. Even though it is a speculative, risky exploration company, it is a core investment because of its people.