Manager Picks Goodman & CompanyAgnico-Eagle, San Gold and Aurizon – Cohen's Manager Picks
Posted: March 12, 2008, 4:30 PM by David Pett
Manager: Robert Cohen, Goodman & Company
Style: All-style encompassing
Fund: Dynamic Precious Metals
Strategy: A movement toward quality with an emphasis on reduction in political risk. A more concentrated position among holdings ie bigger bets and fewer names.
Buy recommendations:
Agnico-Eagle Mines Ltd.
San Gold Corp.
Aurizon Mines Ltd.
Commentary:
"Aurizon's Casa Berardi gold mine is in production and producing about a 160,000 ounces a year. They have a discovery called Joanna and we really like the drill results coming from there. There's a preliminary economic assessment underway right now and the market hasn't tuned into that yet. We have a price target of $10 per share.
"We have a $3 price target on San Gold. The company is under followed with broker coverage just starting to break the ice. There's not a lot of fanfare with this one but its a nice little ramp up situation. They should be at full production rate by the end of this year and we should see it north of 1,000 tonnes a day, so about 100,000 ounces a year. We expect a resource upgrade in April and think there will be a lot of ounces added at a higher grade than the average resource grade.
"Agnico-Eagle are putting five gold mines into production in the next four years and we're forecasting production growth from 200,000 ounces to 1 million ounces by 2010 and 1.4 million ounces per year by 2012. We have a $102 per share price target.