Preparing the Bill Cara Gold 50 List

Later this month, I will unveil the Cara 50 candidates that I will be trading in two subscriber-accessible portfolios. One is for 25 large producers and royalty companies. They have market capitalizations above US$2 billion. The other is for 25 producers and royalty companies that have market caps below US$2 billion but above US$300 million.

Here is a list of 36 of my 50.

Anybody can trade the stocks I am listing but I am going to be trading this list for subscribers because I believe there will be periods of significant volatility in the months ahead that must be monitored closely every day and traded to capture gains and lessen risks. This is what I do. What I will also do is be independent and objective relative to many of the Seeking Alpha writers and Financial TV pundits who talk their book. Yes, I will hold many of these stocks, but I will also write up the bad as well as the good information that you need to consider.

As I was preparing the list I was thinking that every day on Financial Entertainment TV, I hear many names of tech, cannabis, and biotech companies that you all know but still have a tiny fraction of the revenues, earnings and cash flow of names on this list that most investors have never heard of. Take B2Gold for instance. The company will produce one million ounces of Gold this year at an All-In Sustaining Cost of just US$825/oz. Gold is now priced at almost $2,000/oz, so the earnings there are massive, and they will continue and even grow for many years. Should the price of Gold rise to $2,500/0z or higher (much higher) as many investors believe, the financial leverage here is substantial.

If you don’t do the homework, you could miss the opportunity of a lifetime. So, every day, I will try to write about one of these 50 companies. All of the 50 companies I have selected are sound — some more so than others, which I will try to point out. At the same time, I could be writing up so many others on my radar, but most of those are smaller and present more risk. There is also the penny dreadfuls that promoters will be pumping you daily, which I would avoid.

In the next few months, I anticipate a large pullback in what has been a phenomenal increase in equity prices. In some cases, like Microsoft (MSFT), the earnings support the interest of investors, and in the Biotech group, which I reported on recently, there are still some opportunities, but frankly, the market risk is growing. Despite some phenomenally strong fundamentals, the prices of my Goldminer 50 will drop at times along with the market. However, the company fundamentals are sustainable, and so the share prices will become even more attractive. So, in that case, it makes sense to buy the dips. Longer-term, I envision $2500 Gold and strong share prices in the Precious Metals for 18-36 months. At some point, I anticipate a share price melt-up that prudent investors will sell.

So, what I am saying here is that this group of 50 stocks will be 2x to 5x winners in less than 36 months based on earnings, cash flow, and dividends.

AEM Agnico-Eagle Mines is a large gold producer with solid management, reserves, and financial condition. The Company has good revenue, cash flow, and improving earnings. Its mines are in low
AGI Alamos Gold 2020 est. production: 420,000 oz Gold from 3 mines – two in Canada and one in Mexico. Strong portfolio of development stage projects in Canada, Mexico, Turkey, and US. Strong fundamentals
AUG Auryn Res. will become Fury Gold after acquiring 100% of Eastmain and spinning out the Sombrero copper-gold project in Peru. The flagship project is the Committee Bay gold project in Nunavut, Canada
BTG B2Gold 2020 est. gold production: 1.0 mil oz from 3 mines in Mali, Philippines, and Namibia. Strong fundamentals. Very low-cost production (AISC under 825/oz)
GOLD Barrick Gold Corp is one of the two largest goldminers with 2020 production ~5 mil oz. Solid balance sheet. Q1 operating cash flow of US$889M and free cash flow of $438M from world-class mines
CDE Coeur Mining 2020 est. production (no guidance): maybe ~330,000 GoldEq oz (almost all Gold) from 4 gold-silver mines Kensington (Alaska), Wharf (South Dakota), Palmarejo (Mexico), Rochester (Nevada)
EGO Eldorado Gold 2020 est. production: 535,000 oz gold from the Efemçukuru &  Kisladag mines (Turkey), Olympias & Stratoni mines (Greece), and Lamaque mine (Canada). AISC is ~$900/oz
EXK Endeavour Silver 2020 est. production (no guidance): maybe 6 mil oz AgEq from 3 high-grade silver-gold mines in Mexico (Guanacevi, Bolanitos & El Compas). Terronera is interesting development project
EQX Equinox Gold 2020 est. production: 570,000 oz gold (and funded to 1 mil oz) from Los Filos (Mexico), Aurizona (Brazil), Mesquite (California), and four smaller mines in Brazil. A Ross Beatty company
AG First Majestic 2020 est. production: 26 mil oz Silver from San Dimas Silver & Gold Mine, Santa Elena Silver & Gold Mine, and La Encantada Silver Mine, all in Mexico. Increasing cash flow & earnings
FSM Fortuna Silver 2020 est. production (no guidance): maybe 17 mil oz AgEq from gold-silver mines in Peru (Caylloma) & Mexico (San Jose), and soon in Argentina (Lindero). Sound financial condition
FNV Franco-Nevada is an exceptionally large gold-focused royalty & stream company (with Oil & Gas interests) in the US, Canada, Latin America, Australia, Europe, and Africa, and internationally
FCX Freeport-McMoRan is a world-leading copper miner (3.15 bn lbs est) that will also produce about 800,000 oz gold from mines in Indonesia, Arizona, New Mexico, Colorado, Peru & Chile. Rapidly growing
GAU Galiano Gold 2020 est. production: 235,000 oz gold from the Asanko Gold Mine in Ghana, West Africa. Was named Asanko Gold before June 2020. Consistent execution. Industry average AISC
GSS Golden Star 2020 est. production (no guidance): maybe 200,000 oz Gold from a few gold operations in Ghana, West Africa. AISC is about $1200/oz
HL Hecla 2020 est. production: 39 mil oz AgEq from silver mines in Alaska (Greens Creek), Idaho (Lucky Friday), & Mexico (San Sebastian) and gold mines in Quebec (Casa Berardi) & Nevada (Fire Creek)
HBM Hudbay Minerals 2020 est. production: 180,000 oz Gold, 300 mil lbs Copper and 250 mil lbs Zinc in Manitoba & Saskatchewan, Canada, and Peru; with large copper projects in Arizona & Nevada
IAG IAMGOLD Corp 2020 est. production (no guidance): maybe 750,000 oz Gold from mines in North and South America, and West Africa. Corp communications are lacking but fundamentals are sound
KGC Kinross Gold 2020 est. production: ~ 2.3 mil oz Gold with an AISC of just under $1000/oz; hence rapidly growing earnings & free cash flow. A strong balance sheet with ~$1.5 bil cash
KL Kirkland Lake Gold 2020 est. production: ~ 1.38 mil oz Gold with a very low $800/oz AISC. Operates the Fosterville Mine Australia; and Macassa & Detour Lake mines in Ontario, Canada
MAG MAG Silver is a junior company transitioning from developer to 2H2020 producer. Their principal asset is the 44%-owned Juanicipio JV with Fresnillo as the operator, in Mexico. Property has large potential
MMX Maverix Metals is a small but well-managed owner-operated precious metals company with 100+ royalties, streams, & other interests in North and South America, Australia, and internationally
MUX McEwen Mining is a junior gold-silver producer in Ontario, Nevada, Mexico & Argentina, led by industry giant Rob McEwen who holds 21% of MUX. Co is turning around its recent run of bad luck
NGD New Gold 2020 est. production: ~ 435,000 GoldEq oz (incl. ~294,000 oz Gold) from mines at Rainy River (Ontario) and New Afton (British Columbia). High 2020 AISC est. to be $1450. Closer to breakeven
NEM Newmont 2020 est. production: >5 mil oz gold from mines US, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, & Ghana. FCF is almost $20 bil/yr. Holds $3.8 bil cash
NG NovaGold’s main asset is its 50% interest with Barrick in Donlin Gold project (Alaska), which holds 39 mil gold oz and at 1.1 mil oz/yr for 27 yrs could be one of world’s largest open-pit gold mines
OR Osisko Gold Royalties is a small Quebec-based company with 135+ royalties, streams, & other interests in Canada with the industry’s highest cash operating margins and lowest geopolitical risk profile
PAAS Pan American Silver is the world’s 2nd-largest primary silver miner with 10 mines in Peru (43%), Mexico (31%), Canada (15%), Bolivia &Argentina (11%). Owns~10% of New Pacific. Improving earnings outlook
PVG Pretium Res. 2020 est. production: 345,000 oz gold from Brucejack mine in British Columbia. Good earnings and FCF. AISC ~$990/oz. The company also owns a 100% interest in the Snowfield project in BC
SAND Sandstorm is a precious metals co, that grew to ~200 royalties, streams, & other interests in 20 countries from just 5 in 2010. 2020 income is ~60,000 oz Gold but is est. to be 135,000 oz in 2023
SA Seabridge is developing world-class gold-copper-silver projects at 100% owned Kerr-Sulphurets-Mitchell property in British Columbia; and Courageous Lake property in Northwest Territories, Canada
SVM Silvercorp operates 2 polymetallic mines in China. Strong cash flow and earnings, lowest AISC of any silverminer w/strong cash position. Controls New Pacific, which could become the world’s biggest silver mine
SILV SilverCrest explores for silver-gold in Mexico. The company’s development property is the Las Chispas in Sonora, which the company has much cash and says has impressive “base case” potential economics
SSRM SSR Mining produces gold & silver (~425K geo) in Canada, Mexico & Argentina with a low AISC of $740/oz. Strong financials ($504M cash 12/31). Excellent EPS & Cash Flow growth
WPM Wheaton Precious Metals is the world’s premier precious metals streaming company with the highest-quality portfolio of long-life, low-cost assets from 20 operating mines and has 9 developing projects
AUY Yamana Gold 2020 est. production: 786,000 oz gold and 10.25 mil oz silver from Cerro Moro mine (Argentina), El Penon & Minera Florida mines (Chile), Jacobina mine (Brazil), and Canadian Malartic mine

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