Low Cost Gold Producers Rate High

0 0, Seeking Alpha (10/09/2008)
"Cash flow is king as investors weed through murky markets for opportunities in the mining sector, says Wellington West analyst Catherine Gignac. In particular, Ms. Gignac likes low-cost producers who are cashed up during these uncertain times.

In a note to clients Ms. Gignac wrote:

Those [producer] companies with cash flow and low cash costs, low capital spending programs and manageable debt service levels stand to benefit the most as the market high grades names in a flight to quality.

She said she likes gold producers Yamana Gold Inc. (AUY), Iamgold Corp...that all have low cash costs compared to peers and very low price-to-cash flow multiples. As for royalty companies, she likes Franco Nevada Corp. [TSX:FNV] that offers exposure to metal price movements with reduced management and cost risks."

 PRINT THIS PAGE   EMAIL THIS PAGE

Under SEC rules, analysts are required to disclose their interest in securities that they cover. We strongly encourage you to contact them to understand any potential conflicts of interest they may have.

Related Quotes: