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.

Primero Mining Posts Solid 1Q

How this stock is still under $3 a share is beyond me.

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First Quarter Highlights:

--  Improved Earnings and Cash Flow: Adjusted 

    net earnings of $18.8 million ($0.21 per share) 

    were improved from $1.6 million ($0.02 per share) in
    2011 and operating cash flow before working capital 

    changes increased to $21.3 million ($0.24 per share) 

    from outflows of $1.2 million (-$0.01 per share) in 2011; 

    prices to commence in May.

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Cash Position Continues to Grow


 The Company's cash position increased to $86.3 million 

 at March 31, 2012(after paying the initial $9.4 million

 principal and interest payment on the promissory note held 

 by a subsidiary of Goldcorp Inc. in January) from the December 31, 

 2011 balance of $80.8 million. The Company continues to invest in organic 

 growth while building on its balance sheet strength 

----

Expecting big things from Joe Conway (formerly CEO of IAMGOLD) and Primero. 

I am long Primero(Quote - PPP). 

Primero Mining Posts Solid 4Q

Primero Mining posted a pretty good 4q and full year 2011 results today:

"The Company reported 2011 net earnings of $67.8 million ($0.77 per share) with adjusted net earnings of $28.3 million ($0.32 per share). Operating cash flows(3) were $80.2 million ($0.91 per share)."

For the 4Q: "The Company earned net income of $36.8 million ($0.42 per share) in the fourth quarter of 2011, compared with net income of $6.9 million ($0.08 per share) in the fourth quarter of 2010 due mainly to the impact of the APA filing and the resultant recovery of income taxes retroactive to the date of acquisition of the San Dimas Mine." I do expect this filing to be ruled in favor of Primero at the end of this year. 

A production decision to expand the San Dimas mine will be made in the 3Q. Primero currently trades at only $2.50 with a market cap just over $200 million. They are expecting upwards of $90 million in free cash flow for 2012 - Can you say undervalued?

I am long PPP.