Quote:
Originally Posted by CAHEK
I don't like junior because they don't have enough cash flow if gold prices will continue to drop. I like big one's which like Newmont or Barrick.
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I like the Juniors in gold/silver as falling prices can open a bigger window for acquisition especially if the junior has at least one or two productive mines in operation. I watch the bigger names like Barrick and Newmont too.
Well worth to take a look at Yamana (AUY). Its approx $7bn market cap so not too small with profitable mines. They've got a big exposure to south America ie less stable regions but have very low cash costs as a result of that and can stay profitable even with gold at $1000/oz -plus they're expecting over 15% production ramp up this year with some new mines going live. I bought this one at $9.50 and sold at $18 (almost a double) couple years back.
Its now back at under $9 - superb entry point if you think gold is going up from here.