Chen Lin Places His Bets on Self-Financing Producers
TICKERS: AXR; AXU, AUN; AUNFF, BRD, EMX, GSV; GDVXF, IMN, IVP, OGC, ORV, PTQ; PTQMF; P7Z, PVG
Source: Zig Lambo of The Gold Report (2/4/13)
TGR: What else are you following now that looks interesting?
CL: Brigus Gold Corp. (BRD:NYSE.MKT; BRD:TSX) has been on my list for a long time. The company is projected to produce 90,000–100,000 oz (90–100 Koz) of gold this year at costs between $700–750/oz. In the past year Brigus suffered from a terrible hedge—below $1,000/oz—put on by the previous management. The new management bought out the hedge but had to sell a royalty to finance it, so that's still putting pressure on the company's balance sheet. Last year Brigus bought back some of the hedges and royalties. That should help the company going forward.