Investment Q&A

Q: Does anyone know if GCU will survive or should I sell and hope for better odds in vegas. I had assumed with the gold resources they hold something would have been done by now.

Now I am not sure if anything good will come out of it. Losses in every stocks including U308, palladium, technology are washing me out of the market. I am starting to think that I should have stay in Vegas last year instead to buy anything Canadian at least I would have had the 10% odd of getting ahead. If I may ask what are the odds of the Canadian companies surviving this sunami? I took good losses in oil and gas but will wait a few years before to even look at anything oily.

Q: Question on the Deferred income taxes of $5,594,000,000.
Do you have any insight into this on the current report in section 22 they explain $655 million as an increase of Mexican income tax. What about the rest?

http://www.goldcorp.com/files/annual_reports/Goldcorp_AR13_full_v08.pdf
Page 87 is the balance sheet. on page 130 and 131 they explain it.

But it is a big one.

The below only explains $665 M

In December 2013, the Mexican President passed a bill that increases the effective tax rate applicable to the Company’s Mexican operations.
The law is effective January 1, 2014 and increases the future corporate income tax rate to 30%, creates a 10% withholding tax on dividends
paid to non-resident shareholders (subject to any reduction by an Income Tax Treaty) and creates a new Extraordinary Mining Duty equal
to 0.5% of gross revenues from the sale of gold, silver, and platinum. In addition, the law requires taxpayers with mining concessions to
pay a new 7.5% Special Mining Duty. The Extraordinary Mining Duty and Special Mining Duty will be tax deductible for income tax purposes.
The Special Mining Duty will generally be applicable to earnings before income tax, depreciation, depletion, amortization, and interest. In
calculating the Special Mining Duty there will be no deductions related to development type costs but exploration and prospecting costs
are deductible when incurred.
As a result of the law becoming enacted in the fourth quarter of 2013, the Company recognized a non-cash charge of $655 million related
to the deferred tax impacts of the above tax changes.

Q: Is there a reason to have sustained faith in Yamana? You have spoken (written) a few times on the geo-political risk that companies take on when they are located in "problematic" countries. Brazil and Argentina seem to come up often enough in terms of areas with political risk. Given that much of Yamana's resources are located in these two countries, what danger might it pose to Yamana's survivability?

In an off-shoot question, related to this topic: Has there been any resolution to Magna's investigation in Brazil?

Thanks for your help.

Q: Good Day,
I currently do not have any gold positions in my portfolio and would like your top 3 picks. I feel with the current and likely continued unrest in the world there is going to be a push back to gold. You thoughts?

Q: What is your outlook and opinion on BT0.T and can it be bought now (to be held for the long term i.e.5+ years)?

Q: Tech is in free fall, but is the price drop warranted? There are three main commodities but nothing is really new: 1. Copper has been range bound, is currently on the low side, the strike at one mine hasn't effected operations, and a slow world economy is unchanged, 2. Zinc is fine, 3. Met coal is under pressure but that too is not new (management believes that excess supply is being worked off but will take some time).

Which leaves Energy, meaning the Fort Hills oil sands project. This does not start to produce until 2-3 years out and the capex remaining appears to be available. It's maybe a $3B project which is not excessive given Teck's size. The main partner is SU (safe).

On a price book it looks very cheap (below 0.5). Management believes liquidity and capital are strong. Also, it weathered 2008-09.

So why the free fall? At what price does it become a buy?

Thanks, Mike

Q: Hi Peter, my pm portfolio consists mainly of streaming/royalty companies as well as Mandalay MND. If you had to pick one other gold/silver miner besides MND, which stock would it be ??
I'm looking for excellent management (similar to Mandalay) where the market cap is less than $300MM. The stock does not necessarily have to be a producer.

Q: Hi guys, your thoughts on the price of gold for a 3 to 5 year timeline. A few so call experts are calling for a $ 5000.00 + / ounce.
Thanks

Jim

Q: Could I have your opinion on Nuinsco Res.

Thanks

Q: Hi,

Teck has taken a large hit recently. What is your view on buying some now for the medium term (say 2-3 years) and how safe is the dividend in the next 12 months.

Q: Last review February 2014
Your opinion on the ranking of this company within the mid cap oil.
would it be one our your recommendations?
Thanks

Q: Peter.
Prior to subscribing to 5i I got this recommendation and or suggestion from BNN. It did not take long for me to go underwater for some reason. What ever MER there is on this, is all on top of my losses. Is there anything good about this holding, should I keep them for the long term. My age is becoming a factor now. It is starting to look that some of these suggestions and recommendations go short after a bit. Is this all my imaginations or is there something to it?

Q: Hi Peter and team, Your comments pls. on the offering of common stocks. They could only raise 21M....doesn't sound good at all, does it? Would you recommend getting rid of it. THX!

Q: This one has me puzzled quite a bit.
I am thinking of buying another 2000 shares or so, My weighting would still be less than 3%. Having trouble understanding that Bloomberg reported that QKR could be making a bid for this company at around $1.0 billion. This would value the stock at about $5.00 per share. Good earnings, a fairly high dividend, very low copper cost producer. Do you think the price is falling on this stock because of Lower China growth, thus much lower copper prices(copper prices falling every day), or that the takeover rumor has no merit and it is just that, a rumor. I guess I was putting to much faith into the story. One would have thought that the source was fairly reputable (Bloomberg) Comments please on the rumor

Q: I have several thousand shares in PNP going back several years and which (in my mind) I had essentially written off and thought some day they might come back which would have been a bonus. But yesterday PNP announced that it is non-compliant on some debt covenants. What do you make of this situation with PNP and should I sell before they declare bankruptcy which seems a distinct possibility?
As always your advice is much appreciated.

Q: What are your thoughts regarding the price of gold and silver given the Swiss referendum? I hold Silver Wheaton and was considering selling the shares since the U.S. dollar keeps rising and precious metals keep falling.

Q: Hi Peter and team, On Nov 5th YRI and K hit multi-year lows. Just 20 days later they have gained/recovered 22% and 54% respectively from that multi-year lows. Would like to know the underlying reasons for this quick recovery. Thanks.

Q: Hudbay price is approaching 200-day M.A. - They have a big mine in Peru nearly ready for production - your thoughts, please.

Q: Do you know why the stock has been going down lately.

Thanks for your invaluable guidance.

Q: Hi. I sold a full position in new gold at $6.80. I would like to reinvest in presious metals.
What is your oppinion on the risk reward of new gold and centeral fund of Canada at these levels? Or do you think there is a better choice?
Ken