Thoughts from Myron — A Contrast in Gold Miners


By Myron Martin, April 20, 2014

[Ed. Note: Today we’re pleased to present the latest piece from Myron Martin, who writes primarily about junior miners. As always, his words and ideas are his own, and he has agreed to our trading restrictions.] 

Greetings Gumshoers. I still have a tremendous amount of material to go through from the PDAC Conference in early March, with dozens of companies yet to research. I appreciate the input from readers, all I ask is that you exercise some patience as I can not get to everything right away and also keep up with the flood of e-mails coming in daily with important updates on stocks I am following for you. One of the highlights for me at PDAC this year was the McEwen Mining (MUX) shareholder luncheon (see picture below) and the opportunity to meet and talk to Rob McEwen, who outlined his conservative guidance for the company in 2014. Rob, for those who don’t know, was the far-sighted CEO of Goldcorp (G.TO GG) who challenged his people with personal incentives that built the Red Lake Ontario miner into one of the leading powerhouses in the industry today. As a high-growth gold producer in the Americas, Rob, now being located in the U.S., with mines in Argentina, Mexico and Nevada, has a goal of qualifying to be the first major gold miner to be on the S&P 500. I believe in his vision, given his past success and the solid foundation he has built since leaving Goldcorp. I’ve owned Goldcorp myself in the past, and it is so well known that I hardly need to do a profile on the company beyond saying that it is certainly an “anchor” for any precious metals portfolio and is available at a huge discount today, as are most (well run) companies that have survived the manipulations by the government/banker war on gold.

By contrast, the former #1 producer Barrick Gold (ABX), has fallen on hard times. In fact I have read several articles lately by analysts suggesting that Barrick might even end up going bankrupt. My reaction is that nobody in the precious metals field would be more deserving should that actually be the ultimate outcome of the brutal market the past two years. A comparison of McEwen Mining with Barrick’s current problems brings up the question of whether Barrick even qualifies as “well run”? How often have I mentioned that management is the #1 ...

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