Good management and their 5 year plant tries to balance sustainable dividend and capital investment. It is not a well owned stock, almost 80% retail. Through the down turn management have been able to demonstrate the sustainability of the business model. Healthy growth and efficiently bringing debt down. He looks for moderate capital appreciation.
They are mining gold in Ontario in the second half of this year. He has been focusing on tiering his risk. He likes producers and these guys will be in production in a year or two, perhaps by the end of this year. At Canadian prices, Gold prices are tremendous. There is visibility in their production.
Market. Trade threats from the US don’t worry him. It is NAFTA and especially in the energy space. It is a guess and he is waiting on the sidelines to see what language and body language we get. Short term we go a bit to the sidelines. In the long term you have to pay attention and be aware of what it means if something changes. Oil has doubled since January of 2016. The energy index is only up 8%. In the S&P the commodity index is at multi decade lows. We need to see a few quarters of results before the market accepts the new price of oil near $60. OR-T is investing in the Yukon. The reaction has not been too positive. He thinks this will be attractive to seniors in the next few years.