Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Ned Goodman reveals his gold stock picks

Peter Kennedy Peter Kennedy, Stockhouse Featured Writer
0 Comments| May 10, 2013

{{labelSign}}  Favorites
{{errorMessage}}

Barrick Gold Corp. (TSX: T.ABX, Stock Forum) (NYSE: ABX, Stock Forum) co-chairman John Thornton made headlines recently when shareholders voted against the company’s executive compensation plan after it was revealed that Thornton has been paid a signing bonus of $11.9 million.

The plan was voted down in a week when shares of the world’s leading gold producer were getting hammered, sinking to around $22 from a high of $44.75 in June of 2012.

But after a speech in Vancouver Friday, Dundee Corp. (TSX: T.DC.A, Stock Forum) President and CEO Ned Goodman described Thornton as a “superstar” and said he will turn the company around.

It is why Barrick is currently Goodman’s top pick among the senior golds. “They are the one that everybody hates right now,’’ said Goodman after a speech to the Association of Mineral Explorers, British Columbia.

Tipped as Barrick founder Peter Munk’s hand-picked successor, Thornton is a former President and co-CEO of Goldman Sachs Group Inc. (NYSE: GS, Stock Forum). He was also a professor and director of Global Leadership at Tsinghua University in Beijing.

Click to enlargeGoodman (pictured at left) said Barrick is a victim of a combination of circumstances which surfaced at roughly the same time. They include a Chilean court-mandated work stoppage at the Pascua-Lama project, which straddles the border between Chile and Argentina.

But the veteran investor said it’s inconceivable that a country like Chile, with its deep roots in mining, will not permit the Pascua-Lama mine to be built, albeit at an estimated cost of $8 billion, which is way above the original $3 billion estimate.

Goodman said he also likes Dundee Precious Metals Inc. (TSX: T.DPM, Stock Forum), a company that was launched as a closed end fund in 1984 before being turned into a mining company by Goodman’s son Jonathan Goodman, who is now Dundee’s executive chairman.

On May 8, 2013, Dundee Precious Metals reported a first quarter profit of $6.6 million or 5 cents a share, compared to $31.3 million or 25 cents a share in the same period in 2012. It attributed the decrease to higher operating expenses and lower metal prices.

On Friday, Dundee Precious Metals shares eased 3.7% to $5.47, leaving the company with a market cap of $688.7 million, based on 125.9 million shares outstanding. The 52-week range is $9.93 and $5.45.

Goodman had no specific predictions about the price of gold, which was virtually unchanged Friday at US$1,448 an ounce. All he would say is that “it’s going higher.’’



{{labelSign}}  Favorites
{{errorMessage}}