Argonaut Gold (AR.TO)

Likes it. Has an asset in Mexico and acquired a few over time and finally one in Ontario. They have free cash flow that will fund growth over time. 2014 guidance was lowered, but is reflected in the share price. Under $5 he would look to add. They have top tier management.

He has very little gold. These guys are really good operators. These guys have costs around $700 per oz. This is one of 4 companies in North America that has costs under $1000. Growth coming from production. Not a bad entry point if you want it for a little bit of insurance.

Problem is with the commodity, not the stock.

Has always been on a list of very good companies. No cash flow problem. This is a go to name. This would be a great time to buy it except that seasonality has run out. He would look for a bounce to take profits.

This is his only gold holding. Likes their production growth. Thinks gold is weak into the taper and maybe after. Longer-term he feels it has an NAV of over $10 and it will get there in time. Thinks it will grow through a flattish outlook and would be a buyer if gold drops to $1200 again and stocks go way back from where they are. $5.25 would be a place to add.

Gold company that benefits at this time of year. Broke a long-term declining trend and is now on a new trend with higher highs and higher lows. He is expecting another breakout that will be above the 200 day moving average.

Have 2 producing mines, both in Mexico and producing about 100,000 ounces of gold per year. In order to expand and diversify, they bought Prodigy Gold with a major asset in northern Ontario so there are growth assets in Mexico and North America.

This is his only gold holding. Had gotten beaten down with all of the others but has come back. Relatively low cost but has quite high production growth. It can grow its way through flat prices and will still show higher cash flows. It also doesn’t have any significant debt. Good management. Buy it under $7 but a year from now it should be $9.

Trimmed his golds earlier in the year so only has a token position, which is this one. In the short term, he worries that there is nothing in the way to make gold drop to $1250-$1300. If this happens, the stock will go down some. Pick it up on down gold days and it will be $11-$12 a couple of years from now.

What is the experts view of Argonaut Gold going forward for the next 12 to 24 months? Argonaut Gold is a mid tier gold producer out of Mexico. They have a lot of free cash flow. Asset quality is very good. They like their development pipeline. Management is top tier. They own it and like it at the current levels. They have several years of mining life available.

He has a small holding, but it is not one of the companies that he is actively acquiring.

Recently sold his last position in this company. Probably one of the best junior/intermediate golds in Canada right now. Very hard to make money off a natural resource company when the commodity itself is trading sideways or down. He doesn’t own any gold. If you are bullish on the commodity, he would stay with this company because it is the top. Thinks momentum has broken down on all resource stocks.

Just Reported another good solid quarter and had free cash flow with lower costs. Will have a slight increase this year. They continue to show good growth out for 3-4 years at least. Good entry point. Just acquired a company in northern Ontario.

Likes it. Performing well. Project in Mexico, one of the top producing gold countries in the world.

Should we wait before stepping into this one? His advice is if you like it, buy some of it now and then wait. If it drops more, you could take advantage of lower prices. His company has a $12 target and an outperform rating on it.