big fall last night in canada, page-11

Hi Mike,

Overall as I mentioned in my previous post, I am very unimpressed by recent reports. The only stock that I would invest in right now and be confident of not losing my money would be CGX- the enterprise value is ~600mill, they have incredible balance sheet strength and operational cashflow (despite hedging) and have 4million ounces in reserves as is. There is a clear pathway for growing income when hedging expires.

If I had to pick a second, it would be be between MML, RRL, PRU, RMS, SLR and TRY. If PRU gets operational without too many issues, it would be the standout of this bunch. All of the stocks have (IMO) risks and they depend on your approach, financial position and investment horizon as an investor. Most of the risks relate to the fact that a lot of expectation has been built into the price of these stocks.

Risks:
CGX- liquidity, operational (should be ironed out shortly)
MML- paying too much for where it is at currently
RRL- paying too much for where it is at currently (pretty low risk)
PRU- commissioning issues, cost blowouts, etc
RMS- lack of reserves, increased costs of Mt. Magnet
SLR- paying too much for where it is now
TRY- lack of reserves