Investment Q&A

Q: Looking for a good way to play the Nickel market. Been following it of late and I think the fundamentals look promising. RNX - royal nickel, has so much risk being at such an early stage. S - Sherritt just seems like a poorly run company. Are there any "pure" or near "pure-play" producers in the space?

Thanks,
Rob

Q: SWC.U has been showing some strength recently. Is there anything to the company? Would you mind also commenting on platinum/palladium as an industrial metal. Is demand basically coming from the automobile sector?
Thanks

Q: Hi Peter, I don't own any gold stiock.yamana is at 52 week low for all the reasons. What is your opinion. Buy or hold. Thanks

Q: whats your thoughts on sandstorm gold , ssl. thanks

Q: Hi 5i,
my question is regarding Tinka Resources ( TK) . the stock recently was halted for several days. it appears majors changes are taking place within this company. i purchased this a while back at a slightly higher price. i know it is very speculative but i also was impressed with the drill results. so now in your opinion is this new company better than the old. in what ways ? please comment on management. also, what do you think of Peru ? can you find out what how much skin management has in the new company ? as an investor do you have any other info that might be of interest to me ? thanx norm

Q: Thank you for your time!

I have a follow up question on Argonaut Gold vs. BTO. I am overweight in gold with a substantial holding in AR. My average cost per share is $4.32. I do not mind holding on as I think the assets of this company are good. It is, however, disconcerting to see a new 52 week low every day! Should I consider moving my holdings in ArgonAut over to BTO, sell and take the loss or hold on? What would be a technical indicator that the stock has bottomed and one could average down....... If one is going to be hung for a sheep.....you might as well make it a Llama!!!

Q: Hi Peter,

I own some Sherritt shares and not sure if I should vote for Mr. Armoyan and his two nominees since the existing board hasn't done too much for the last several years.

Your insight is always greatly appreciated.

Henry

Q: Assuming the AEM & YRI purchase of OSK goes ahead as per the current offer how do you see it playing out for AEM? To me it looks positive as I feel OSK is an excellent property. Do you feel there is a potential YRI & AEM merger on the distant horizon?
I am thinking of adding to a current small position to AEM but maybe after the deal has closed. Am I right to wait?
Thanks

Q: For what its worth I feel the CEO of G badly bungled the OSK file. I never liked the low-ball offer - if you want it you put up the numbers to get it. A low-ball offer just invites competition. OSK, in my opinion, is an excellent miner...it's got the reserves, the grades, the location and the team that brought a gold mine into production during declining gold prices. I know you like G and I am a shareholder myself but now I am wondering about the executive suite.
I sort of recall seeing the CEO stating on television that the initial offer was a take-it-or-leave-it offer and he wasn't about to overpay. Then he increases the bid once YRI comes to the table. His word does not appear to be his bond.

Q: Hello All,

I am confused by the. Continued weakness of Argonaut Gold (AR) and was attempting to understand the relative valuation. How does AR compare to a company like BTO? Are the relatively the same size companies? Do they 'deserve' to have comparable share prices? Would it be fair to expect AR to fall to the $3.00 range? Finally, which company would you consider to be a stronger buy and hold prospect?

Thank you for your help!

DON

Q: Any furth comments on Lucara Diamond LUC. Las comment was in February. Is it still a buy at 1.90?

Q: Peter VALE SA on New York. Thoughts on the miner - is trading below 200 day and near 52 week low. Pays a nice dividend and I am a patient value investor - with fewer names to choose from these days.

Q: I have held S (2% weighting) for just over 2 years and am finally back to par. I do not need to raise cash and it is my only holding in the materials sector outside of gold. My portfolio is weighted towards income (71 years old). Would you sell here and what would be a good replacement?

Thanks Team

Q: Hi Peter & 5i Team,

In your answer to Marc on April 16 regarding Kirkland Lake Gold (KGI), you wrote "The company ... and is probably worried about getting taken over ala Osisko."

Can you explain why a company would be "worried about getting taken over"? I thought that is a good thing to happen (atleast for shareholders who earn a premium on the takeover). Is it not also beneficial for the management of the company?

Thanks in advance.
Francis

Q: Hello 5i,on the most recent offer by Yamana and Agnico for Osisko could you comment as to your opinion as to if this is the last offer would you hold onto Osisko and take the shares of Yamana and Agnico or sell into the market? Also say on the basis of if you hold 1000 shares as of now of Osisko what would be the break down as to how many shares and or cash would you receive of Yamana and Agnico and when would this deal be completed.
Thanks Michael

Q: Peter and Team,

Is it time to cut and run on Kirkland Lake Gold? It feels wrong to sell such a high grade asset so low but it seems like it can't do anything right these days. Maybe I should be selling this and rolling it into my existing B2 Gold position (also own Goldcord and some bullion) or maybe I should be moving it to another "physical" name totally out of the gold space like Stella Jones?

I can't help but feel like the day I sell KGI will be the day that I miss out on some big guy coming in and buying this at a premium but still cheap!

Q: Hello 5i.
I have been sitting back and watching the developments in the takeover attempt on Augusta AZC by HudBay as per your advice from my previous question. Augusta has since claimed there are multiple parties interested in purchasing the company. HudBay seems to be calling their bluff and is trying to get the Canadian regulators to remove the shareholder rights plan so they can get on with things. If there are other interested parties should they have showed their cards by now? Would it be prudent to still sit and see what develops or is the challenge to rights plan the signal to head for the exit? I would like to be gone with almost my original investment if there is nobody coming but HudBay at the end of it all as they have stated their plan is to wear them down over time as they have done to others previously. Thanks for all your help.

Dave

Q: Your thoughts on Sherrit please.

Q: Hi Peter, a couple of days ago I asked for your advice in this space on SWY after its massive financing for Renard diamond project in Northern Quebec, I am holding the shares since 2010 and experienced all the ups and downs also reverse splits and averaging down I am finally in black, is it wise to hold on to this company's shares till production start in 1st quarter of 2016 or take some profits now ?
Your comment is greatly appreciated.
Thank you. M.N

Q: Hi, I would like your views on Centerra Gold generally and in terms of value. Also, do you think the dividend is relatively safe? I am looking for a small exposure to the gold sector. Would you have another name that you would recomend instead, which pays a dividend. Thanks for your input.