Wheels Group Inc GRFJF

RBC News

[Mine_Professor]

Globe says sell Kinross, rivals now, buy them back later

2008-04-09 07:04 ET - In the News

Also In the News (C-CG) Centerra Gold Inc
Also In the News (C-JAG) Jaguar Mining Inc
Also In the News (C-WGI) Western Goldfields Inc (2)

The Globe and Mail reports in its Wednesday, April 9, edition that RBC Dominion Securities expects weakness in gold this summer and strength in the fall. The Globe's Andy Hoffman writes that RBC says take profits now. RBC believes the summer will present a strong buying opportunity for gold and gold stocks. RBC expects gold to rebound in September and October. "I've never seen the gold price strong in the summer," says RBC analyst Mike Curran. Gold hit a record high of $1,033.90 (U.S.) an ounce on March 17 but has since pulled back. It closed Tuesday at $918 (U.S.).

RBC says investors should sell into gold price strength in April and May. "Over the past 28 years, gold has typically outperformed on a monthly basis in the months of April and May. This is usually followed by a seasonal slowdown in the summer months, and an upsurge in the early fall. With this in mind, investors may crystallize profits now and take advantage of gold at lower levels within the June-July period," says RBC. Gold producers including Kinross Gold, Harmony Gold Mining, Centerra Gold, Jaguar Mining and Western Goldfields are names RBC recommends clients increase positions in during the summer price weakness.

[Mine_Professor]

I meant to add the following note to the last post. This Year will be different, the junior gold’s in production are a screaming buy.MP

[stocksnbonds]

Tough call on selling. I took some profits recently because of the languishing share price. I do like the story but at these prices for gold, WGI should be much higher everything being equal. The problem for WGI and most value plays now is that people are affraid to get into the markets because they fear another steep drop in general equities which would bring value plays such as WGI

[babedinkleman]

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[stocksnbonds]

Thanks for the explanation. I didn't read through the last PR as thoroughly as I should have and this is a big mistake on my part. It explains perfectly why SP has been so low. The expectation is low until the next quarter. I sold a portion of my position as mentioned, although I do plan on getting back in a couple of months from now. I see no reason why gold should not go higher from current

[babedinkleman]

This post has been removed in accordance with Community Policy

[stocksnbonds]

I hear you and so does the board. I think we are all on the same page with respect to the mid/longer term potential. What's getting to me as well is the price being stuck in limbo. I think it was one of you folks here who led me to CGC (Capital Gold) and that has now become my primary gold junior play. WGI will come back to life but I see more potential short term in CGC. I see WGI languishing

[loantech1]

costs will be tad bit higher:Forecasted cost of sales per ounce for the full year 2008 will rise to between $410 - $430 compared to previous estimates of $355 - $365(1). But expected to fall in 2009 with better tires.

[babedinkleman]

This post has been removed in accordance with Community Policy

[loantech1]

Regarding the tires they could order a full compliment of cheap tires for all haulers and get on time start up delivery. Only way they could go to get the Michelins they had to wait and I beleive that is the brand they are obtaining for 2009. Not positive.