Alamos Gold Inc (AGI.TO)

Just closed the Richmont acquisition. Views it as a premier mid-cap name in Canada. There is no debt and they have a bunch of cash on the balance sheet. Generates free cash flow. He calculates their all-in sustaining costs is a little below $850 an ounce. Operates in Canada and Mexico. Likes management and the assets. It’s not unreasonable to have some gold exposure, in case things go sideways. Dividend yield of 3%. (Analysts’ price target is $12.00.)

This has taken a kicking over the last week or so with the Richmont acquisition. Think it was a bit of a surprise that the company had made an acquisition of that size. Its original base was in Mexico, but have now diversified into Canada. Richmont has a great little mine. It is ramping up to lots of exploration upside. Maybe they have overpaid right now and incorporated some of their growth into what they paid. He would rather buy something that is steady and consistent and does what it says it is going to do, without surprising him with any dilution or major acquisitions.

Made a bid to acquire Richmont Mines (RIC-T) which is considered as a good acquisition for them. It will increase their Canadian exposure in a more politically safe environment. It will also increase their production profile and lower overall costs. It is probably a decent holding for gold exposure.

He chose this gold company because it is trading close to its BV. Its last earnings report was really, really good. This is a company that has been working hard to reduce costs, and has been very successful. They’ve been doing a tremendous job as a mine, and if they get a rise in commodities, the earnings power will go up. Dividend yield of 0.2%. (Analysts’ price target is $13.25.)

He does not see a near term catalyst. It rewarded him in the past, however.

(Top Pick Mar 3/16, up 25%) It is a nice little company with a nice balance sheet. It is one of the golds he has been sticking with although volatile. In a longer term outlook, it is not a bad stock to remain in. They are in politically safe areas.

Junior gold company. It is a speculative play. If you are bullish on gold then it could be a fine company to hold. It made a major support base after a major run. If Gold went back to $1100 then that is the down side risk to a stock like this. He can’t speak to the quality of the company.

(A Top Pick Oct 20/15. Up 64.43%.) He chose this one because it had a good quality balance sheet. It is a junior miner and therefore had lots and lots of leverage against the price of gold, which he had been expecting to go higher. Also, felt the company was working hard at reducing costs and that earnings would start to surge up. It is still quite cheap, trading a little above its BV.

He remains bullish on this stock and on gold. It will have to go up, given the balance sheets of countries around the world.

A very high quality mid tier. Good balance sheet. Mature mines.

This looks like most gold stocks. The downtrend was broken this year. A few of his technical indicators on the daily chart were showing a little overbought on gold. This is not a doom and gloom scenario though. If it pulls back, that will be a buying opportunity.

(Top Pick Mar 17/15, Down 7.41%) The price of bullion has made a permanent turn to the upside. He is keeping this one. He likes gold right now. Look at what world banks are doing and what is the long term affect – dilution of money. Gold has to do well. He likes Canadian gold assets. He likes the company’s balance sheet. There is staggering leverage on the price of bullion. He thinks gold will do very well for the this and next year.

He has a quarterly, weekly and daily buy signal in gold. He is generally optimistic across all gold stocks. If the price of gold moves up you will see a significant earnings revision. This one has a huge leverage to gold. Hold it for two years, or get an ETF or one of his top picks.

(A Top Pick March 17/15. Down 40.7%.) Had thought that it might be time for bullion to start to move again. Instead, it has formed a nice base. It is still his view that gold stocks and bullion are dead cheap. If you own, continue to hold. (See Top Picks.)

You don’t want a gold stock that is down today. The fact that it is up today is a good sign. It is underperforming right now. Go with the strong stock or buy the XGD-T