Eric O's Favorite Gold Miners

Before getting started, this would be a good time to review the parameters I've laid out as to where my biases lie.

Location Risk

Size Matters

Royalty Deals

Just a reminder that this List is just a window into what I'm thinking at any given moment.  Readers of this thread remain entirely responsible for their own due diligence, their own risk management, and their own trading decisions.

And with that, let's get going!

Atna Resources:  Atna has the Briggs Mine in California producing around 40,000 per year, but the big news is the recent consolidation of the Pinson property in Nevada.  This fully permitted 12 g/t underground project should be operational by YE 2012, and shooting for an annual rate of about 75,000 for next year.  They are funding it all through cash flows and a loan from Sprott.  Repayments to Sprott are pushed back to 2013.  No stock dilution.

Argonaut Gold:  Open pit operations in Mexico, with stellar operational success so far with their initial mine.  Start up of a second operation is underway.   Guidance for 2012 is 88,000 to 97,000, while 2013 looks more like 130,000, all at industry average costs.

Aurcana:  Start up at Shafter (Texas) is scheduled for June.  If all goes well this should vault Aurcana up to a similar silver production size as compared to something like Endeavour, at a much cheaper price.

AuRico Gold:  Recent asset sales are designed to lower overall average costs and improve financial metrics.  The leaner, meaner AuRico now has two mines in Mexico, the start up of the Young-Davidson Mine in Ontario, and a significant cash hoard.  Current production is around 234,000 oz/yr.   2012 guidance is 323,000 to 363,000, as YD gets up and running.  If you look out to 2014, company guidance is 450,000 to 530,000.   AUQ is hoping that YD alone will be producing 250,000 by 2016.  These are some eye popping growth projections, though much depends on a successful YD start up, which is never a sure thing.  Silver fans should note that the Ocampo mine has a significant silver component added in to the totals as Au equivalents.

Aurizon Mines:  A favorite buyout candidate as far as I'm concerned.  A single top quality underground mine in Quebec, and lots of cash.  Still a great buy even if you value all their development projects at zero.   Casa Berardi should keep cranking out about 160,000 per year, for years and years to come, at below average costs.

Claude Resources:  This has been brutal.  The stock has been beaten to within an inch of it's life recently, largely on concerns about stagnant production and rising costs at the Seabee Mine in Saskatchewan.  Meanwhile, management has gone about it's business expanding the mill, deepening the shaft, and drilling up new, higher grade ounces.  All of this should mean rising production and lower costs going forward.  The other big thing is the Madsen Project, near Red Lake.  This former producer has the permits and the infrastructure to be a quick and cheap start up anytime that Claude wants to pull the trigger.  For now they are continuing to drill, in order to really start it up with good size.  

Detour Gold:  Gigantic open pit fully financed and well along in construction in Ontario.   Should average about 650,000 per year for 20+ years, with start up scheduled for Q1 2013.  Still trading at a discount to where it should be upon a successful start up.

Endeavour Silver:  Solid silver miner in Mexico.  The recent El Cubo acquisition from AuRico has gotten mixed reviews, but since El Cubo is only 10 km from their existing operations I'm fine with it.  If anybody can straighten things out at El Cubo, Endeavour can.  Current production is around 5.6 million oz AgEq.  When the El Cubo deal closes, they should be more like 7.6m AgEq, with about $50 million cash left over to work with.  Endeavour has long wanted to buy Great Panther's adjacent operations, but El Cubo is the next best thing.

First Majestic Silver:  Top shelf silver miner in Mexico.  They've been running around 8 million oz AgEq per year, with plans to double that by 2014, largely on the back of the steady start up and expansion of the Del Toro Mine.  They recently acquired Silvermex on the cheap, just days after SLX reported some terrific drill holes.  When the deal closes, SLX will be adding around 1 million oz Ag to First Majestic's annual totals, for starters.

Great Panther Silver:  GPL is running two operations in Mexico for a combined total of around 2 million ounces AgEq.  Plenty of cash flows for further development.  The thing I love about the Panther is the excellent trading liquidity and volatility of the stock.  When silver bullion moves, you can count on the Panther to move.  

Impact Silver:   Producing around 1.0 million ounces of Mexico silver.  Plans on the board for steady growth, funded from cash flows.   For so small a company, IPT seems to have excellent market action.  Similarly to my comments about Great Panther, when silver moves, Impact moves.  No doubt about it.

Kirkland Lake Gold:  Steady resurrection of an historic Ontario motherlode that logged past production in excess of 20 million ounces.  Currently producing around 100,000 per year, though at above average costs.  Mill expansions are underway that should vault KGI to 250,000 to 300,000 per year by 2014, with costs improving.

Rubicon Minerals:  Fully financed, permitted, and under construction, the PEA from last summer on the F2 Deposit, near Red Lake, Ontario, envisions 180,000/yr for 12 years, though high grade underground mines tend to outlive their initial life estimates by a large margin.  The economics look good, and they just hired a new operational guy who brings just the right experience from Goldcorp.  Target for start up is YE 2013.

San Gold:  San Gold is currently running at about an annual rate of 88,000 from the Rice Lake Mine in Manitoba.  Capacity expansions and recent good drilling bode well for the future.  Guidance is 120,000 for 2013.  The other nice thing about San Gold is that they are the big dog in their district.  All the penny juniors around them always come to San Gold looking for JV's.  That tells me that San Gold will be involved with anything big that comes along in their area.

Timmins Gold:  They've successfully restarted the former producing San Francisco open pit mine in Mexico, and are posting good growth in resources and production.   They're currently going at an annualized rate of around 86,000 per year, with expansion programs underway to hit a steady 130,000 per year by 2013.

Now, let's get out there and make some money!