Latest Expert Opinions

Signal
Opinion
Expert
TOP PICK
TOP PICK
September 15, 2017

A fracing sand provider. Down 50% year to date on concerns of production coming out of Texas. While volumes are going to be increasing, when you cancel the type of sand coming from Texas, combined with demand growth overall, there will not be that massive glut everybody is concerned about. The stock is reflecting a doomsday scenario, which there is no basis of reality in. Trading extraordinary cheaply. Very, very strong balance sheet. Dividend yield of 0.9%. (Analysts’ price target is $40.)

A fracing sand provider. Down 50% year to date on concerns of production coming out of Texas. While volumes are going to be increasing, when you cancel the type of sand coming from Texas, combined with demand growth overall, there will not be that massive glut everybody is concerned about. The stock is reflecting a doomsday scenario, which there is no basis of reality in. Trading extraordinary cheaply. Very, very strong balance sheet. Dividend yield of 0.9%. (Analysts’ price target is $40.)

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$28.810
Owned
Yes
TOP PICK
TOP PICK
September 15, 2017

This is his biggest E & P holding. 90% hedged next year, so it is really a production story and a delineation story. They are spending more money next year than this year on delineation. They’ve had really good success in the new zone where they have 600 locations. They’ll be growing more than 50% next year. Relatively healthy balance sheet and a good hedge position. Trading at a discount relative to other Permian producers. There is upside from them continuing to delineate the Wolf Camp C, because the economics are pretty outstanding on “finding costs” at about $5 a barrel. (Analysts’ price target is $38.)

Parsley Energy (PE-N)
September 15, 2017

This is his biggest E & P holding. 90% hedged next year, so it is really a production story and a delineation story. They are spending more money next year than this year on delineation. They’ve had really good success in the new zone where they have 600 locations. They’ll be growing more than 50% next year. Relatively healthy balance sheet and a good hedge position. Trading at a discount relative to other Permian producers. There is upside from them continuing to delineate the Wolf Camp C, because the economics are pretty outstanding on “finding costs” at about $5 a barrel. (Analysts’ price target is $38.)

Eric Nuttall
Partner & Senior Portfolio Manager, Ninepoint Partners
Price
$25.640
Owned
Yes
COMMENT
COMMENT
September 15, 2017

A long-term kind of hold. Everybody is waiting for a uranium recovery in prices. The buying side has been on a bit of a strike. There seems to be no hurry in restoring long-term inventories among major users. No one is really making a lot of money at current prices. This company has the benefit of having a very good contract book, which protects them from short-term prices. Expects buyers will probably be back in the next 24 months to start to refill inventories, which will strengthen and bolster demand.

Cameco Corporation (CCO-T)
September 15, 2017

A long-term kind of hold. Everybody is waiting for a uranium recovery in prices. The buying side has been on a bit of a strike. There seems to be no hurry in restoring long-term inventories among major users. No one is really making a lot of money at current prices. This company has the benefit of having a very good contract book, which protects them from short-term prices. Expects buyers will probably be back in the next 24 months to start to refill inventories, which will strengthen and bolster demand.

Dennis da Silva
Managing Director & Sr Portfolio Manager, Middlefield Capital Ltd.
Price
$12.330
Owned
Unknown
COMMENT
COMMENT
September 15, 2017

Has a massive project in Alaska which has been mired in controversy. It has had partners leave, big CapX spend, environmental sensitivities, etc. There was some rejuvenation when Trump was elected, because environment was a little bit less of an issue. He is at the point where he perceives mega projects are not desired anymore. Seniors have found a bit of religion in trying to focus on efficiencies, getting their house in order, and have been doing small acquisitions and trying to build future development projects on a more modular basis.

Has a massive project in Alaska which has been mired in controversy. It has had partners leave, big CapX spend, environmental sensitivities, etc. There was some rejuvenation when Trump was elected, because environment was a little bit less of an issue. He is at the point where he perceives mega projects are not desired anymore. Seniors have found a bit of religion in trying to focus on efficiencies, getting their house in order, and have been doing small acquisitions and trying to build future development projects on a more modular basis.

Dennis da Silva
Managing Director & Sr Portfolio Manager, Middlefield Capital Ltd.
Price
$2.230
Owned
Unknown
COMMENT
COMMENT
September 15, 2017

A Mongolian project with single assets. For all intents and purposes, it is a public controlled vehicle of Rio Tinto (RIO-N), which owns 51%. A low grade large deposit with lots of growth going down the road as they develop the underground portion. It is currently open pit. Feels it is fairly valued. Sensitive to copper.

A Mongolian project with single assets. For all intents and purposes, it is a public controlled vehicle of Rio Tinto (RIO-N), which owns 51%. A low grade large deposit with lots of growth going down the road as they develop the underground portion. It is currently open pit. Feels it is fairly valued. Sensitive to copper.

Dennis da Silva
Managing Director & Sr Portfolio Manager, Middlefield Capital Ltd.
Price
$3.760
Owned
No
COMMENT
COMMENT
September 15, 2017

This got a little bit of press because of the recent Alamos (AGI-T) acquisition of Richmont in the last week, which is in the same vicinity. A nice little deposit, and he sees good upside to more regional exploration. Sees a resurgence in the Canadian gold space.

Harte Gold Corp (HRT-T)
September 15, 2017

This got a little bit of press because of the recent Alamos (AGI-T) acquisition of Richmont in the last week, which is in the same vicinity. A nice little deposit, and he sees good upside to more regional exploration. Sees a resurgence in the Canadian gold space.

Dennis da Silva
Managing Director & Sr Portfolio Manager, Middlefield Capital Ltd.
Price
$0.640
Owned
No
HOLD
HOLD
September 15, 2017

Great management. One of the best performers and is up 128% year to date. Just under 600,000 ounces and is kind of a 2nd quartile cost producer. Very good margins. Did a very big merger last year with New Market, which basically makes it an intermediate producer. From its Australian assets, there is a lot of upside in the near term. After 2 years, the Macassa mine in Canada, probably through a 2nd shaft, can grow production by another 200,000 ounces. Great earnings.

Kirkland Lake Gold (KL-T)
September 15, 2017

Great management. One of the best performers and is up 128% year to date. Just under 600,000 ounces and is kind of a 2nd quartile cost producer. Very good margins. Did a very big merger last year with New Market, which basically makes it an intermediate producer. From its Australian assets, there is a lot of upside in the near term. After 2 years, the Macassa mine in Canada, probably through a 2nd shaft, can grow production by another 200,000 ounces. Great earnings.

Dennis da Silva
Managing Director & Sr Portfolio Manager, Middlefield Capital Ltd.
Price
$15.660
Owned
Yes