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Mid stream company, a toll road. 4.2% dividend yield. Just increased to this this morning. Payout ratio is under 60%. Excellent cash flows. Because it is an infrastructure play, the gains are capped at 10% plus dividend.

Venture Stocks. Feels about 30% of these stocks will disappear and it will turn into a slaughter unless there is a major shift in sentiment. People are not putting money into this risky sector. About 70% of companies trading on the Venture Exchange have only $1 million or less in the bank. If they account for 30% of the total valuation of the venture exchange, which is $40 billion, companies with $1 million or less cannot survive very long. Right now, the opportunity exists to acquire some really quality companies, quality management and quality deposits at a discount to what they are worth. You have to be very, very careful and do your due diligence because there is no more dumb money to bail us out. As a potential investor, one of the first things he’d be looking for is, do they have enough money to not only survive but to do some meaningful work. Secondly he’d be looking at the projects that offer potential of a major economic deposit that would interest somebody else as an acquisition. Thirdly he would look at management. There are a lot of quality people in this industry. If you get these 3 things right, you will do fantastic in this market.

Is it true that market sentiment is not very positive towards the Yukon and, if so, why not? 2-3 years ago, the Yukon was the place to be. There was something like 160 companies that were picking up projects and doing stuff up there. Out of this, there was one discovery that kicked it off that was followed up by another major discovery. Yukon has too much gold, which is a problem. The geology is such that most of the gold that is being shed into streams is coming from small structures, small veins. Difficult to find a large deposit, and if you do you face the problem of infrastructure CapX costs to develop it.

Likes what they are doing. Deposit is very good. Probably the best iron ore deposit in Canada. Best located. Infrastructure is there. They can handle the CapX. Their partner was supposed to come in and spend a bunch more money if the feasibility met certain criteria. Feasibility met the criteria but the Chinese said they needed a month to look at it. Now waiting for the Chinese to come back and say they are in, which is expected about the middle of March. He would wait for certainty on this before buying.

Over 4 million ounces. Very good deposit. Low grade, just over a gram, but it holds together really, really well. Economics behind mining and processing it are going to be really good. Sits under a lake but that is an issue that can be resolved. Also, have to come to some kind of permanent arrangement with the native tribes. This stock has been hammered from fund selling. At this price, he is tempted himself.

Like this one a lot. Very easy operation to mine. Good margins. Good deposit and it is getting bigger.

Not had a discovery yet but are employing the joint venture model. They generate the concepts and bring other people in to spend the money drilling. He trusts the management and they are in the right places to find a massive deposit. He is just going to let the process go on.

One of the best deposits in the US. 7,000,000 ounces at about 1.7 g plus an antimony (?) kicker with it. A fantastic deposit. There is a lot of questions as to whether it gets permitted or not but he thinks permitting goes ahead. Getting hammered by funds redemptions. Tempted to buy this again.

Very dynamic company. Another one that has been hammered by the fund selling. Smart management. In Nevada and Ontario in the Red Lake District. Management has positioned itself in such a way that a major is going to have to buy them out or one of their deposits. Worth looking at.

To him this is a test mine to see how these things really work. Large, low grade disseminated deposit, but not well disseminated as the deposit is spiky which can cause troubles to a mining operation. Have done a lot of work to try and deal with this and he is watching to see what happens. There are big expectations and usually when you start something this big, there are hiccups.

Interesting deposit. One of the spiky ones where gold grades are very erratic in the holes as they follow it down. Most recent drilling was deeper with some really good hits. Once you get down there though, you have to start thinking what is the strip ratio and what is the cost to get down to it.

(A Top Pick March 7/12. Down 68.92%.) Very well run company. Bought this because they had the joint venture with Newmont but Newmont is dragging their feet so he sold his holdings.

(A Top Pick March 7/12. Down 24.01%.) One of the best prospect generators. $15 million in the bank, gets $5 million annually in a royalty and are doing great work. Scattered among 5 countries globally. Top quality people working for them.

(A Top Pick March 7/12. Down 32.95%.) Big project in Armenia. 3+ million ounce deposit, about a gram. It’s going to be very cheap to mine. There is feasibility on it that shows it worth over $1 billion at a 5% discount rate and you can buy the company for $200 million. Thinks they are a takeout candidate.

Wouldn’t it be a more prudent use of money for companies to acquire companies than trying to grow by the drill bit? A lot of the majors did some big acquisitions over the past 5 years or so and paid way too much for things and are getting burned terribly. Management is scared and they’re pulling in. New fad is now cash flow and earnings. To do that they are going to tweak their mines which have already been tweaked and they are not going to get much profit or savings out of that. They’re going to add to their mines by drilling around existing mines but 9 out of 10 times the grade is lower and deeper so costs are not really going to go down. Also, there are not that many good deposits out there.