I have outlined why fundamentals look best at market highs, and worst at market lows. Just like we n...
Canadian Gold Gains
10/14/2015 8:00 am EST
Albert Barsanti reiterates his buy recommendations for a pair of Canada-based mining companies. Here's the latest from The Complete Investor.
Endeavour Silver (EXK) recently reported finding both gold and silver in three historic veins in its Mexican Bolanitos mine.
The metals are in areas that lend themselves to relatively easy extraction, meaning that even under current market conditions the company’s cash flows should remain positive.
Results from the company’s Guanacevi mine, also in Mexico, were even more exciting, with high-quality silver and gold repositories found adjacent to existing structures, making expansion into this rich area relatively cheap.
That news comes as a welcome surprise, since earlier the company had indicated the area probably didn’t hold much value.
Despite weak commodity prices, shares of NovaGold Resources (NG) have gained almost 20% so far this year.
This reflects investor approval of the company’s more targeted focus on higher quality ore from its producing mines.
Looking ahead, NovaGold is particularly bullish on its Galore Creek project, citing its high-grade metals and relatively low costs. Its stake in the Donlin Gold project, however, may prove most important to future profitability.
The participation of major miner Barrick Gold (ABX) suggests a long lifespan for the mine, which will allow it to benefit from the sharp rise in gold prices that we believe lies ahead.
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