RBC's Chris Beer interview
I couldn't resist popping into an internet cafe. Here's a decent article. Check out his quote on favourite pick Randgold, and comment on continued margin expansion for gold miners. Here is the link for the entire article and the quotes I liked. Now back to the sunshine. Happy Canada Day!
https://www.theglobeandmail.com/globe-investor/funds-and-etfs/funds/precious-metals-manager-sees-gold-price-pointed-north/article1625047/
Is it better to buy bullion or stocks?
We don’t hold bullion because we are positive on the gold price. If gold goes up 25 per cent, historically stocks will go up 75 per cent. That relationship over the last couple of years has contracted from three times the gold price to, at present, probably 1.5 times. It has contracted because, while the gold price has gone up, the profit margin per ounce hasn’t really increased [as costs rose.] But it does look like we are going to see continued margin expansion. In that environment, gold stocks will outperform bullion.
Randgold Resources Ltd. (93.40-1.35-1.42%): The gold miner and explorer headed by chief executive officer Mark Bristow is “one of our favourite mid- to large-cap names,” he said. “The company was one of the first to identify West Africa as a great place to explore and build gold mines.” Randgold has two mines in Mali that generate free cash flow to fund two “outstanding projects in Senegal,” he added.