COMMENT

Some analysts are having better impressions than they have had in the past. Just announced they are upping their guidance. There is potential for lower cash costs based on the premise that the grades look to be coming in better than expected. At these valuations, it is starting to look interesting.

COMMENT

Sold his holdings a few years ago when he thought it got expensive. Started looking at this again and has built up a very big position. New management looks a lot more prudent and conservative. Have a new development program in Siou, Burkina Faso. Regarding geopolitical risks, he likes to diversify his portfolios because you can get surprised by events. Currently he is comfortable with this country.

TOP PICK

Nice solid balance sheet with about $380 million net cash. One of the largest silver producers with about 25,000,000 ounces a year. Not much growth in the short term, but they do have a project Navidad in Argentina, one of the world’s largest undeveloped silver mines. Unfortunately, Argentina is not a place you want to build but it sounds like winds of change may be coming. Yield of 4.46%.

TOP PICK

Market Cap is about the same as its cash. Came out with a feasibility project in Ghana with about a $286 million CapX to produce 200 million. Just announced financing and will be breaking ground early next year.

TOP PICK

A silver streaming company. Basically they buy silver with upfront payments and then get silver returned to them at a price of whatever was agreed on. They basically get the margin between the cost of their agreement and the silver price. They don’t have the operating cost risks or capital overrun costs that mining companies have. Yield of 1.72%.

BUY

(Market Call Minute.) Ridiculously priced.

BUY

(Market Call Minute.) Stock has been hammered. Need to finance but assets are so great, he believes it will get financed.

BUY

(Market Call Minute.) Has come through their ramp-up stage, they are executing, getting their production on and bring down their cash costs. Last quarter had record production.

BUY

(Market Call Minute.) A higher risk sort of name. New CEO. There will be a lot of new plans coming out. Has heard that they are high grading the mine and he is very encouraged with what he is seeing. Still a fair amount of risk.

N/A

Markets. This rally has gone ahead very quickly, particularly in the US. Feels their market is a little bit ahead of fundamentals and could be subject to some sort of shock. If the economy is as strong as the market would indicate, then they will certainly begin tapering at some point next year. The market seems to live in fear of that liquidity moving out of the market. Also, there is always a possibility of some geopolitical event in the Middle East, upsetting the apple cart. Wouldn’t be surprised to see some sort of correction, but the good news is that overall the business economy does appear to be stronger. Good news for Canada is that as global economies begin to expand again, the demand for commodities will come back. 2014 could be a much better year for Canada, relative to the US than 2013 has been.

DON'T BUY

Has not bought this, but some clients brought some in with their accounts. He has been focusing on other players in the mining sector. Their big project, Ambatovy, in Madagascar is almost a make or break project for them. There have been a bit of cost escalations there along with some delays. On a price basis, the stock looks very, very cheap. There are other, more diversified plays that he would prefer. (See Top Picks.)

DON'T BUY

Payout has been in excess of 100% which is not sustainable. A lot of analysts are projecting that next year the payout should drop to below 100% with the possibility of it dropping to 65% in a few years. Still a very high level. Last few quarters have not been great. He prefers Enercare (ECI-T).

BUY

Things seem to be working out fairly well for this company, particularly with the installation of the smart meters they have been doing. 7% yield.

COMMENT

Likes this gold company because it is so well-run, a fairly lower cost producer and has a fairly good production profile going forward. Tries to limit his holdings in gold to 5% or less.

HOLD

Sell Bonavista (BNP-T) and buy Enerplus (ERF-T)? Bonavista has done relatively better and has always been a well-run company so he would hesitate to leave this one. Still pays a pretty decent dividend yield of a little over 6%. About 80% natural gas, so it has been penalized to some extent. Very good properties and extremely well managed.