Agnico CEO Calls for $3,000 gold

Agnico CEO Sean Boyd said today on King World News that he is calling for $3,000 gold in the next 24 months. He's never called for gold to be this high before.

Here's his reasoning: “I think you’re in a situation right now where the problems in Europe are front page and it has hurt the euro. So the US dollar is stronger. If you look at the US dollar, that story is on page 3 or 4. It will be a front page story soon. The debt ceiling has to be raised and we really haven’t fixed a lot of the issues, whether it’s in the US or in Europe.”

This is what I've been saying for quite some time now. The US economy and the US dollar is not front page news - yet. Once people realize how much trouble we are in, I think we will be in for a major rally. This could happen after QE3, this could happen when the debt ceiling needs to be raised, again. They will wait to the last minute to do this...

He is also bullish on the mining stocks, and the juniors, which I think will produce the biggest returns going forward: "When it turns and gold turns, this is where you are going to get the best leverage. You are going to get the best leverage from the quality stocks, and then, ultimately that will move down the chain and you’ll see some huge returns coming out of the juniors at some point.”



GOLD IS GOING TO $5,000 an OUNCE. End of story. 

Read more at King World News.

Leeb on Gold Juniors - "Greatest Bull Market of All-Time."

Stephen Leeb is Chairman & Chief Investment Officer of Leeb Capital Management:

"The junior gold stocks, the ones with honest to goodness reserves which have not been developed, they will see one of the greatest, if not the greatest bull market of all-time."

Read more at KingWorldNews

Sandstorm Gold Releases Great 1Q Results

Another great quarter for this gold streaming company. I've been in since .65 cents and have no intentions of selling anytime soon!
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Sandstorm Gold Recognizes Record Gold Sales and Operating Cash Flow of US$9.3 Million

 Vancouver, British Columbia, May 3, 2012 - Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (TSX-V:SSL) is pleased to announce its unaudited results for the first quarter ended March 31, 2012 (all figures in U.S. dollars).

First Quarter Highlights

• Record operating cash flow of $9.3 million.
• Record gold sales of 7,946 ounces.
• Average cash cost per ounce¹ of $314 resulting in cash operating margins of $1,380 per ounce.
• Sandstorm entered into a revolving credit agreement to borrow up to $50 million, which remains undrawn.

"The first quarter proved to be another record quarter in terms of gold sales and cash flow," said President & CEO Nolan Watson. "As our cash balance continues to grow, we are better positioned to complete additional gold streams..."

Read more - www.sandstormgold.com

 

Brigus Ready for a Breakout

BIG news out of the Brigus Gold camp today. I guess there was a good reason for all that recent insider buying!

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"Brigus Reports 26.83 Grams Per Tonne Gold Over 15.50 Metres at the Contact Zone on the Black Fox Complex.

The initial resource estimate for the Contact and 147 zones, as released in December 2011, added more than 50 percent to the gold resource at the Black Fox Complex. Exploration drilling at the Black Fox Complex is progressing as planned with four drill rigs and an updated resource estimate on the Contact and 147 zones will be released in 2012."

ALSO:

"Brigus Gold Corp's (BRD.TO) first-quarter production touched the top end of its guidance, helped by robust output at its Black Fox mine in Ontario and the gold producer said it expects costs to be lower than its earlier forecast.
 
The company still sees gold production of 77,000 ounces to 85,000 ounces in the year.
Cash costs, which are estimated at $775-$825 per ounce, are likely to drop to about $700 per ounce in 2013, the company said in a statement."
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If this doesn't bump the shares up, I don't know what will. This stock should be trading AT LEAST over $1 a share right now...

I am long BRD.

Gold Stocks News for Thursday

Lots of news flow today for the juniors.

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"Sandstorm Gold Announces Proposed Share Consolidation  Vancouver, British Columbia, April 5, 2012 -- Sandstorm Gold Ltd. ("Sandstorm" or the "Company") (TSX-V:SSL) is proposing a consolidation of its issued and outstanding common shares ("the Common Shares") on the basis of one (1) post-consolidation Common Share for up to every five (5) pre-consolidation Common Shares (the "Consolidation"), with the final consolidation ratio to be set by the Company's Board of Directors within the range approved by the shareholders."

Fine with me. The company wants to open up to the US markets and bigger investors. The warrants will not be affected negatively.

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"Brigus Gold Hits Q1 Production Target
Halifax, Nova Scotia; April 5, 2012 (NYSE Amex: BRD; TSX: BRD) – Brigus Gold Corp. (“Brigus” or the “Company”) is pleased to announce that it produced 16,922 ounces of gold at an average grade of 3.04 grams per tonne (gpt) in the first quarter of 2012 – hitting the top end of its guidance."

*This is also good for Sandstorm! Great job by the team at Brigus to turn this around. Only expect better things on from here.

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And finally....

Vancouver, April 5, 2012 – Luna Gold Corp. (TSXV-LGC) (LMA-LGC) (OTCQX-LGCUF) (“Luna” or the “Company”) is pleased to announce its gold production update at the Aurizona Gold Mine for the quarter ended March 31, 2012. 

Aurizona Gold Mine produced a quarterly record in Q1 of approximately 16,000 ounces.

Sandstorm owns a 17 percent stream. Luna Gold is an interesting story as well.

Gold Juniors Will Outperform the Next Leg

 Something amazing has happened from October of 2011 until present day - The Dow has actually been outperforming gold (the HUI, the GDX and the GDXJ, as pictured below). Do not expert this divergence to last long. As you see, the juniors (GDXJ) outperformed all from 2010 to 2011, hitting $44 at one point.

The Dow and the S&P (GSPC) started the divergence early December of 2011. It is in my strong opinion that the GDX and GDXJ are in very oversold territory - both are trading near 52 week lows. And it is in my opinion that the Dow is very overbought!

In the long run, it is not even close...gold has been king.

I also believe that, whether it's in 2 months, 6 months, a year, that gold stocks will start outperforming physical, especially the juniors.

From 2005 to 2008, the GLD and HUI traded virtually side by side...the crash of 2008 changed that and GLD has outperformed since then....

I do expect them to meet again, I just do not know when. I will say this - the miners pay dividends and will most certainly be increasing them in the coming years. The miners are all pretty undervalued at the moment as well. Maybe its when people finally realize this, will the gap start to close. Or maybe when they realize the GLD doesn't really have any gold! I do believe the investment mentality on gold stocks will change, it is only a matter of time. Just keep buying at these insane valuations and buy the dips!

I am long GDX and GDXJ. 

Charts courtesy of Yahoo! Finance

Insider Buy Alert - Brigus Gold

Courtesy of CanadianInsider.com:

I am long BRD.