John O'Connell, CFAKinross GoldK.TOTOP PICKMar 25, 2013

Doesn't own either. Kinross has historical issues trying to right the ship, doing better recently. 

For ELD, a very high 60% of NAV is exposed to development risk. Recent mine is financed and built, but there's still execution risk. Trades at a discount on geopolitical risk too.

His preference is AEM, with one of the best teams and one of the best executions he's seen over the last decade.

Pulled back recently.
Has sold shares, but looking with current share price.
Wait a little before buying.
Expects gold to go up the next few years. 

Has initiated a position in the company. Company focusing on core business model. Strength in US Dollar putting pressure on gold (expect this won't last). Larger institutions recently buying shares in the company.

Barrick Gold? He prefers Kirkland Lake and Agnico Eagle among the big producers, because they have better leverage and are streamlined. He always puts Barrick and Kinross in the same category. Kinross buys assets at low prices, but he'd rather buy the companies they buy than Kinross itself. (The one positive with Barrick is Warren Buffet coming on board; big-value investors will buy Barrick and won't bother researching the mid-tiered players.) That said, he expects a better-levered move from KL and AE.

Bullish on gold. This one will give you exposure to the miners. He's always looked for the best operators, like KL with its clean balance sheet. Watch the USD. If it continues to rally, you'll get a much better opportunity to buy.

The earnings were good. He just doesn't like these big companies. He has done better with the other producers. He would go with Agnico that presents a better value. (Analysts’ price target is $9.25)

Not fond of the big boys like this and prefers buying them early to ride the wave when they grow. It's like buying Microsoft in 1995. Companies like Kinross are only now getting into the money, because of their production costs in so many projects. He avoids companies like this.