Investment Q&A

Q: Hi Peter,
Can you please give me your opinion on endeavour silver. Besides SLW which silver stocks do you like? thanks Clare

Q: What do you think of GPR? Do you know how much it costs them to produce 1oz of silver? Do you think its a good buy? I'm looking for silver companies that have cash, no debt and are producing at a low cost. GPR seems like a good candidate. Do you have any other recommendations better than GPR? Thanks and Happy Holidays!

Q: I am thinking of spending about one third of my port folio on 1OO ounces gold coins thanks team 5i

Q: Hi, thanks for great advice
i am about to sell Yamana for tax loss selling but would like to retain some gold or gold stock, hope fully the best alternative to YRI and the best company and with best possibilities in this sector to weather any downturn and make best comeback whenever that happens,
Could you please advise what should be the safest, yet the best to buy in this sector
Thanks again

Q: I have held a small position in this for the gold play which has not played out in 2014. Can I have your opinion as to whether I should sell for tax loss or hold
Thanks and look forward to your reply.

Q: I am thinking of buying either bto.to or tmm.to. Which one would you prefer? What are their debt level?
Thank you, and the best in this holiday season,
Jose

Q: 9:38 AM 12/22/2014
Good morning Peter

I have 9140 Sandstorm Warrants [SSL] listed as :

"WTS-SANDSTORM GOLD 4DEC16" with TDWaterhouse, and as
"WTS SANDSTORM GOLD LTD EXP 12/04/2016 S040240" by Scotia McLeod.

When I look at the Sandstorm website they only list SSL.WT.A Oct 19, 2015, and SSL.WT.B Sept 07, 2017, and "Non-public warrants" with no expiry dates.

My warrants are shown at zero value by both my brokers and Scotia McLeod affirms that they have no value. I find this really strange. Can you explain this, and is this in fact the case and can I do anything with them at all?

Also I would value your current opinion on Sandstorm Gold. Whatever happened to their unfortunate investment in Colossus Gold?

Many thanks...... Paul K

Q: Good afternoon. The first and last question with respect to VMS was on Jan. 2014. Since then, I believe the mine they are partners in (with HudBay) is in production, and VMS is receiving cash flow from said mine. I have previous (unsuccessful) experience with Junior miners, and am unsure what expectations to have with VMS now that they are producing. My broker advises to hold, but I'm not so sure. Other than VMS and a small position in Goldcorp, I have negligeable exposure to mining.

What sort of upside does VMS have, assuming copper prices remain steady?

Thanks,

Cam

Q: Thank you for answering my question on Lakeshore gold and the 47 Million shares that went across at the last second of trading of Friday. Just so I am clear about what you are saying is that Portfolio managers decide to adjust and re-balance so they either sell or buy and in this case they sold. In this case (if I understand correctly) it was decided to sell off 47 Million shares and that happened at the last minute. In effect it didn't drive the stock down more than 5%. Obviously. Also there were enough buyers to absorb 47 Million shares. Is this correct and if so does it not speak to the strength of this stock. One would think that this off loading of 47 Million share would cause the price to plunge by a lot more than 5%. This was 30 times more than the daily average. Thanks You.

Q: On Friday at the bell 48M shares were traded. I read it was rebalancing. Not sure what this means or what transpired. Can you explain the process and explain.

Thanks

Q: I echo the sentiments expressed previously in wishing Peter, Ryan and everyone and their families at 5i, the best this holiday season!! I would also like to extend these wishes to all members and their families fortunate enough to benefit from this great service!!

Prior comments have generally been positive on Timmins Gold. Could we get your take on their purchase of the Caballo Blanco prospect from Gold Group Mining. Do you know the asset at all? Was it a shrewd move at this time or are there issues that might keep this property from ever becoming a mine?? Thank you very much for your time.

Anthony

Q: Could I have your opinion on SAU. St Augustine gold and copper.

Thanks

Q: Could you please comment on Teranga vs. Argonaut at the present time, main factors being current valuation, and debt/risk? Thanks!

Q: Good afternoon. With Russia pursuing drastic measures (selling crown jewels) in an attempt to keep things under control, they are sure to be selling their gold reserves as well. How much of an impact would this have on gold prices, and would it be best to be out of gold in the mean time, or will the implosion of the Russian Ruble (and contagion to other markets) actually be a good thing for gold?

My only gold exposure at the moment is a 1% holding in Goldcorp.

Q: Hi Peter and Team - I agree with yesterday's positive response to a question on Argonaut Gold. I have a concern that according to Ink Insider Research there has been no buying (perhaps balanced off by no selling either) by insiders in this company for some time and their holdings in general appear to be quite low. Should this be a concern? Also would the reports that have access to support the above statement re insider holdings?

Thanks.

Rob

Q: Hello All;

Last month I sold my shares of Argonaut Gold (AR) at a steep loss for a tax loss. I have done well on the trade as the stock has continued to fall an additional dollar from where I sold. It is now time to purchase it back, but I am wondering if repurchasing my shares of AR would be the best use of my money. Can you please review the company metrics and provide me your opinion in to whether I should buy back into this stock?

Thanks in advance.

DON

Q: an updated opinion on mux please, damn, ive never seen these shares so low,even rob must be concerned.tkx pat

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.