"Goldcorp (GG) recently posted very solid results; but even more important, is the powerful pipeline of major projects," notes resource expert Adrian Day.

The editor of The Global Analyst continues, "Indeed, a major expansion at a planned mine development will benefit not only Goldcorp, but another one of our recommended holdings, Canada's Virginia Mines (VGQ).

"At Goldcorp, the expansion of its major projects will, in aggregate, boost the company's output about 70% by 2015. In addition to the successful ramp-up at Penasquito, and ongoing construction at Pueblo Viejo in the Dominican Republican, the company announced significant improvements at a major project.

Continue reading Gold Buys: Goldcorp (GG) and Virginia Mines (VGQ)

Gold Buys: Goldcorp (GG) and Virginia Mines (VGQ) originally appeared on BloggingStocks on Mon, 14 Mar 2011 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Royalty Model Boosts Silver Wheaton (SLW)

Royalty Model Boosts Silver Wheaton (SLW) originally appeared on BloggingStocks on Wed, 28 Jul 2010 15:30:00 EST. Please see our terms for use of feeds.

Continue reading Franco-Nevada (FNV): Resource Royalties

Franco-Nevada (FNV): Resource Royalties originally appeared on BloggingStocks on Tue, 27 Apr 2010 12:00:00 EST. Please see our terms for use of feeds.

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"International Royalty Co. (ASE: ROY) is my top speculative idea for 2008," says Adrian Day, editor of The Global Analyst.

"Mining is a tough business, with high capital costs and one in which, as the old saw has it, 'Murphy works overtime.' One way to mitigate the risk while remaining exposed to upside in resource prices is through royalties. Royalties come in all shares and sizes; they can be net or gross, fixed or sliding scale, and so on.

"International Royalty Co. has put together an extensive portfolio of over 60 mining royalties, most of which are on properties not currently in production.

"Its crown jewel, accounting for half the company's net asset value, is from a royalty on the world-class Voisey's Bay nickel mine in Labrador, Canada. Many of its other royalties are on gold projects, including its second most important asset, the royalty on Barrick's Pasuca mine in Chile.

"The stock sold off recently after the company raised money for a potential purchase of the royalty division of Newmont Mining; instead, the division was effectively IPO'd. But this decline makes ROY very inexpensive for a low-risk royalty company, selling at just over 10 times next year's estimated cash flow, much less expensive than other royalty companies.

"As metals prices continue to advance and more of the properties on which ROY holds royalties come into production, ROY will benefit tremendously, making it a solid long-term growth story as well as ripe for a rebound from oversold levels."

Best Stocks for 2008: Mining profits from International Royalty (ROY) originally appeared on BloggingStocks on Sun, 30 Dec 2007 18:00:00 EST. Please see our terms for use of feeds.

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"My favorite conservative idea for 2008 is Apollo Investment Co. (NASDAQ: AINV)," says Adrian Day, editor of The Global Analyst.

"The company makes investments of debt and equity to medium-sized businesses, and a Regulated Investment Co. pays out most of its net income in dividends. Like other RICs, the dividends tend to be high and growing, but also like other RICs, it was caught up in the market turbulence of the past few months affecting all finance companies.

"Apollo Investment, the public arm of the eponymous New York private equity firm, came out just over three years ago. It is large ($2.2 billion market cap), financially conservative, and tends to do larger deals than most similar outfits.

"Its average investment is now just over $47 million, and as the fund grows, this should get larger still. It has investments in 67 companies, just over half of which is in sub debt.

Continue reading Best Stocks for 2008: Income potential from Apollo Investment (AINV)

Best Stocks for 2008: Income potential from Apollo Investment (AINV) originally appeared on BloggingStocks on Sat, 22 Dec 2007 15:20:00 EST. Please see our terms for use of feeds.

This article is part of a 20 article special report on "Metals, miners and money".

"When building a portfolio of junior mining stocks, stick with the best -- not just the cheapest," says money manager and advisor Adrian Day in his industry-leading The Global Analyst.

Although he is cautious on gold prices for the near term, Adrian Day suggests, "Gold is still only part way through its current bull move, one that likely still has years to run." Here, he looks at five favorite top-quality junior miners.

"Gold has had an extraordinary run, based partly on the decline in the dollar, which appears overdone in the short term. The fundamentals for a weaker dollar and for a stronger gold price remain intact, but I would be cautious about chasing markets now, especially the seniors.

"But it would be a mistake to sell too much, particularly in an attempt to trade the market and buy back precisely the same stocks at lower prices. Such attempts often end badly, as one fails to buy back favorite companies after selling at perhaps intermediate tops.

Continue reading Top resource ideas: Adrian Day 'sticks with the best'

Top resource ideas: Adrian Day 'sticks with the best' originally appeared on BloggingStocks on Sun, 11 Nov 2007 14:10:00 EST. Please see our terms for use of feeds.

"This is a great time to be buying in the gold and silver area," says resources expert Adrian Day. In his Global Analyst newsletter, the money manager and advisor explains, "We are focusing on quality companies in the junior resource sector, following what is traditionally the weak summer period for gold prices."

One favorite of the advisor is Gold Fields (NYSE: GFI), which he notes has a strong balance sheet and long-term reserves. He points out that the stock has been held down as would-be acquirer Harmony sells shares.

In addition, he states, "Goldcorp (NYSE: GG) is one of the strong balance sheets, highest growth outlook, more favorable country risk profiles among the senior miners."

Among silver companies, he says, "Silver Standard Resources (NASDAQ: SSRI) has a strong balance sheet (even allowing for a problem in some commercial paper it holds) of C$242 million, including bullion.

Continue reading Adrian Day: Top buys in gold and silver

Adrian Day: Top buys in gold and silver originally appeared on BloggingStocks on Thu, 06 Sep 2007 09:15:00 EST. Please see our terms for use of feeds.

Last December, over 100 stocks were featured in our Top Picks for 2007 report. Now, at mid-year, we turn to the 20 advisors whose picks showed the strongest gains to get an update on their previous picks, as well as a new favorite stock for the second half of the year.

Adrian Day, editor of the Global Analyst, chose Virginia Mines Inc. (TSE: VGQ) as his favorite stock for 2007. It rose 31% as of 6/1/07. Here is Adrian's original recommendation for Virginia Mines and his current favorite stock for the second half of the year.

He now says, "Virginia Mines, is a Canadian resource exploration company, but one with a difference. Although small (with a market cap of less than $150 million), it has about 14 active projects with four current drill programs underway, a lot for a junior company.

"It does this by bringing in partners of its Quebec exploration projects, partners who spend the money. Virginia gives up some upside on any particular project in return for spreading its risk and having a piece of multiple projects. This strategy enables the company to maintain a strong balance sheet, currently about C$45 million.

"The company's active projects include an exploration program adjacent to its recent gold discovery at Eleonore, a property sold last year to Goldcorp. There are early signs that Virginia could find more deposits on this ground. Other prospective projects include a zinc discovery, joint ventured with Breakwater.

"The stock has moved this year from C$4 to the current C$5.70, but it remains inexpensive. The business model is very low risk, while any exploration success will see the stock price higher."

Top 20 advisors: Adrian Day sees golden gains in Virginia originally appeared on BloggingStocks on Mon, 25 Jun 2007 14:02:00 EST. Please see our terms for use of feeds.

Last December, over 100 stocks were featured in our Top Picks for 2007 report. Now, at mid-year, we turn to the 20 advisors whose picks showed the strongest gains to get an update on their previous picks, as well as a new favorite stock for the second half of the year.

Adrian Day, editor of the Global Analyst, chose Virginia Mines Inc. (TSE: VGQ) as his favorite stock for 2007, which rose 31% as of 6/1/07. Here's Adrian's original recommendation on Virginia Mines and his current opinion on the stock.

His new favorite for the rest of 2007 is -- like Virginia -- a "gold company with a difference." His new pick is Vista Gold Corp. (ASE: VGZ). He explains, "During the early 2000s, when the price of gold was weak, Vista acquired known gold resources, but ones that were uneconomic at the time.

"This enabled it to build reserves inexpensively, and rather than mining them when the price was low, it held on to the gold in the ground, building value as the price of bullion appreciated.

"Now Vista has 12 properties around the world in various stages of development, some economic at today's higher price. Together, it has over 13 million ounces of resource (proven, probable, and indicated), valued at just over $20 per ounce in the ground -- very cheap.

"In addition to the considerable exploration potential at many of its properties, it also has $20 million in cash. With strong leverage to rising gold prices, we would buy Vista as an option on gold, but one without an expiration date."

Top 20 advisors: Adrian Day views Vista Gold originally appeared on BloggingStocks on Tue, 19 Jun 2007 14:30:00 EST. Please see our terms for use of feeds.

I've just returned from the World Money Show, where some 10,000+ investors gathered to learn about global investing. I had a chance to meet with many of the advisors who were featured at the show, and I have been highlighting some of their favorite investment ideas. To view all of the stocks featured in this special global report, click here.

Elsewhere in this global report, we feature the top South African stock from Adrian Day, editor of The Global Analyst. Here, he looks north of the border to a top pick among more speculative Canadian-based, global exploration play.

He explains, "Altius (TSX:ALS) has its roots as a prospect generator, focusing on mineral-rich but under-explored Newfoundland and Labrador. It has grown beyond that, but still looks at opportunities to grow, using other people's money to advance projects and minimize its risk.

"And it still generates properties; recently it staked three new uranium properties in central Newfoundland and a nickel property in the east with a plan to advance to a joint venture or strategic equity stake.

Altius has seven main assets now, four of which are joint-ventures or minority interests developed through staking, including 10% of Aurora Energy, 30% of London-listed Rambler Metals, and a uranium property in western Newfoundland, joint-ventured with JNR Resources.

"Altius also owns a royalty on Inco's Voisey's Bay nickel project, which started operations just a year ago. This will generate about $1 million a quarter to Altius, with no cost, at today's nickel prices. This multi-decade project has plenty of exploration upside and great leverage to nickel prices.

Continue reading Global gains: Altius goes prospecting

Global gains: Altius goes prospecting originally appeared on BloggingStocks on Mon, 19 Feb 2007 14:30:00 EST. Please see our terms for use of feeds.

I've just returned from the World Money Show, where some 10,000+ investors gathered to learn about global investing. I had a chance to meet with many of the advisors who were featured at the show, and over the next week I will be highlighting some of their favorite investment ideas. To view all of the stocks featured in this special global report, click here.

The international diversity of this top-tier conference is easily seen in this article, in which Adrian Day, a London-based advisor and editor of The Global Analyst looks at the prospects for a South African company with operations from China to Peru." Here's his review.

"Gold Fields (NYSE:GFI) is easily my favorite South African stock, and it's not difficult to see why: It has the best mines with the lowest cost and longest life; solid management; a strong balance sheet (with an ongoing emphasis on cost control); and a vision for international growth.

"Recently, however, its shares have lagged; this was because of a large equity issue occasioned by a substantial South African acquisition. But now that equity issue is concluded, we can buy again.

"Gold Fields has a focus on a few large, long-life assets, both in South Africa and internationally. Its recent $3 billion acquisition of the very deep and long-life South Deep mine has resulted in a jump in the share of its production from South Africa, as well as a significant increase in its share count and its debt.

Continue reading Global gains: South African gold

Global gains: South African gold originally appeared on BloggingStocks on Sat, 10 Feb 2007 19:00:00 EST. Please see our terms for use of feeds.