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COMMENT
Market Outlook He has an investment clock that suggests it is a good time to invest in gold equities. Now that gold producers have cut debt, dividends and costs we should now start to see a recapitalization of the junior mining sector as gold prices have edged back to $1500 per ounce. Smaller transactions are getting done suggesting it is starting to begin. The issue is when will the institutional investors come back in. The divesting of large assets by the large players could suck up some of the capital that could have been directed towards the junior miners -- this could slow the progress of the junior space somewhat.
COMMENT
WAIT
It has a great management team and the Yukon is a friendly place to develop. Infrastructure is the issue. Smaller mining operations can deal with this, but lack of power and transportation are challenging. Where copper prices are, this is still too levered -- you need copper prices to go higher.
Mining
DON'T BUY
He used to own this. He was interested in the West Africa play, but he was looking for a higher grade play instead. Right now West Africa is not a safe play geopolitically speaking. This is probably impacting the share price. Infrastructure constraints make it more expensive in their area as well -- power comes strictly from diesel.
Mining
DON'T BUY
An excellently managed royalty with diversified metals -- mostly base metals, coal and potash along with gold. It is down about 16% since August as it was impacted by lower copper prices and some reductions in production. They carry about $95 million in debt, costing about $2 million per quarter. There may be some short term financing risk.
precious metals
