December 2, 2009
NIA Stock Suggestion Updates
Gold reached a record high today of $1,216.75 per ounce! NIA officially declared "Gold Mania" on September 8th when gold reached a record high of $1,009.40 per ounce, and prices have surged over 20.5% since then!
Silver reached a high today of $19.47 per ounce, its highest since July of 2008!
We would like to provide an update on all of our stock suggestions beginning with our gold stock suggestions, then our silver stock suggestions and finally our agriculture stock suggestions.
NIA Gold Stock Suggestions:
Capital Gold Corp. (CGLD) closed today at a new 52-week high of $1.06 up 71% since we suggested it on August 5th at $0.62. CGLD is beginning early stage exploration work on its Saric properties located in Northern Sonora, Mexico. They have intersected gold and silver mineralization from many of the recent drill holes targeted at identifying a potential bulk tonnage gold mineralized zone.
Entrée Gold Inc. (EGI) reached a 52-week high on October 5th of $3.16 up 127% since we suggested it on July 9th at $1.39, and has since dipped back to $2.47. Just like we predicted in our last stock suggestion update, EGI has been underperforming other gold stocks in the short-term now that the anticipated investment agreements in Mongolia have been signed. EGI remains one of our top long-term exploration plays. EGI recently signed a definitive agreement to acquire PacMag Metals Limited, which has a 100% interest in the Ann Mason Project located near Yerington, Nevada, which hosts the Ann Mason copper-molybdenum porphyry deposit.
Ivanhoe Mines Inc. (IVN) reached a 52-week high on October 6th of $13.70 up 135% since we suggested it on April 15th at $5.84, and has since dipped back to $12.47. IVN has been following EGI closely, like we predicted in our last update. IVN has assigned three drill rigs to the ongoing exploration work at Oyu Tolgoi. Underground access to enable more cost-efficient drilling into the Hugo Dummett Deposit is expected to be completed by the end of this year.
DRDGOLD Ltd. (DROOY) rebounded 14% today to $6.44 and is currently down 11% since we suggested it on October 18th at $7.20. We said in our last update when the stock was $5.45, "we will look back at this current time as having been an excellent buying opportunity." DROOY has bounced 18% since then. It was announced today that DROOY is selling 60% of their Blyvoor gold mine to Aurora Empowerment Systems for 296 million rand ($40.54 million). This will strengthen DROOY's balance sheet and allow them to focus on their surface operations. Aurora will provide Blyvoor with a capital facility of up to 80 million rand, which should be enough to get the mine back to producing its high grade gold. We continue to believe in DROOY as a turnaround play and consider it to be significantly undervalued here.
Yamana Gold Inc. (AUY) reached a new 52-week high today of $14.37 up 76% since we suggested it on April 8th at $8.17. AUY remains what we consider to be the safest and most solid mid-tier gold producer with the greatest chance of becoming the next large-scale miner.
Eldorado Gold Corp. (EGO) reached a new 52-week high today of $14.82 up 62% since we suggested it on April 1st at $9.14. EGO recently discovered a new gold mineralization zone at its Tanjianshan Mine in China. EGO now has three drills active on the zone and looks forward to continued expansion of the mineralization through 2010.
Royal Gold Inc. (RGLD) reached a new 52-week high today of $55.96 up 33% since we suggested it on March 18th at $42.21. Like we said in our last update, RGLD won't be able to outperform many of the mid-tier gold producers, but it is a very safe play being leveraged to the upside potential of gold without the downside risks of having to pay for the production costs.
GoldCorp Inc. (GG) reached a new 52-week high today of $46.24 up 65% since we suggested it on March 11th at $28.05. GG just declared its twelfth monthly dividend payment for 2009 of $0.015 per share and announced an agreement with Newstrike Capital for the sale of their 21.2% interest in the Morelos gold project in Mexico for consideration of not less than CDN$52 million.
Newmont Mining Corp (NEM) reached a new 52-week high yesterday of $56.45 up 39% since we suggested it on February 26th at $40.68. Like we predicted in our last update, NEM has been playing catch up to the price of gold and outperforming most other gold stocks in the recent weeks.
Barrick Gold Corporation (ABX) reached a new 52-week high today of $48.02 up 53% since we suggested it on February 26th at $31.34. ABX announced yesterday that it has completed the elimination of all of its gold hedges and now has full leverage to the gold price on the industry's largest gold production and reserves.
NIA Silver Stock Suggestions:
Silver Wheaton Corp (SLW) reached a new 52-week high today of $17.45 up 159% since we suggested it on February 26th at $6.74. We continue to believe that SLW is the safest silver play.
Endeavour Silver Corp (EXK) reached a new 52-week high on November 23rd of $4 up 141% since we suggested it on June 17th at $1.66 and has since then dipped slightly to $3.88. EXK recently acquired an option to purchase the San Juanico properties, located adjacent to the El Cometa property, part of EXK's Parral exploration project near the city of Hidalgo de Parral, Chihuahua State, Mexico. The San Juanico mine properties include the San Juanico and Dolores shafts, which had a history of small-scale production down to 100 and 150 meter depths respectively and the upper mine levels were until recently producing approximately 25 tonnes per day of silver-rich lead-zinc-gold ores. EXK is our favorite small-cap silver producer.
Hecla Mining Co (HL) reached a new 52-week high today of $7.47 up 202% since we suggested it on April 30th at $2.47. As a sign of the improving financial strength of the company, HL announced yesterday that it has elected to declare and pay all dividends in arrears and the next scheduled quarterly dividend for each of its outstanding series of preferred stock. HL is now the largest silver producer in the U.S.
First Majestic Silver Corp (FR-T) reached a new 52-week high today of $4.05 up 49% since we suggested it on June 2nd at $2.72. FR-T just opened its new La Encantada cyanidation plant, which has a total capacity of 3,500 tpd, with estimated annual production exceeding four million ounces of silver.
NIA Agriculture Stock Suggestions:
Potash Corp. of Saskatchewan, Inc. (POT) reached a new 52-week high today of $123.08 up 65% since we suggested it on March 4th at $74.63. POT's share price has made a drastic turnaround since our last update when we said we believe the fundamentals for POT's products are improving underneath the surface and their business will see another boom in the years ahead.
Zhongpin Inc (HOGS) reached a new 52-week high on October 21st of $16.79 up 45% since we suggested it on April 1st at $9.16, but has since then dipped back down to $13.81. We believe HOGS offers a great way to diversify into China and the company is positioned to grow for decades to come.
AgFeed Industries (FEED) is currently $5.07 up 10% since we suggested it on November 3rd at $4.60. FEED is currently positioning themselves for the long-term agriculture boom we expect to take place for decades to come in China.
A co-founder of NIA has purchased 7,400 shares of DROOY at an average price of $6.76, 16,500 shares of EGI at an average price of $2.50, 5,950 shares of EXK at an average price of $3.05, 2,700 shares of IVN at an average price of $12.64, 2,300 shares of AUY at an average price of $12.07 and 600 shares of NEM at an average price of $51.76, and can sell shares in any of these companies at any time.
