Peter Spina: Stock Picks from Canvest 2015

While attendance was a little sparse at this week’s 2015 Canadian Investor Conference, investors who did show up definitely didn’t leave empty handed. Those who took the time to sit in on a talk or two likely left with at least a few companies to look at. 

One speaker who gave stock recommendations was Peter Spina, president of GoldSeek.com and SilverSeek.com. Here’s an overview of his presentation and a brief rundown of the precious metals companies he likes at the moment.

The long-term case for precious metals

Spina started by taking a macro view of the market, noting that global debt is through the roof, while paper currencies are in trouble.

Looking specifically at the US, he said that debt is at $18 trillion and will continue to rise, though it’s been stalled by the current interest rate halt. Like many, he believes the Chinese yuan is a threat to the US dollar as the Asian nation wants to use its currency to become a global powerhouse.

Meanwhile, as tension between Russia and China remains and the global view of the US worsens, the question of which country will rise to the top is becoming ever more pressing.

While one might expect all of that instability to push investors toward safe-haven investments like gold and silver, Spina said that as yet many western investors don’t feel an incentive to enter the market. However, in his opinion that may be to their detriment. He sees the gold price averaging between $1,100 and $1,400 per ounce this year, but believes that by 2020, “the gold market will be on fire again” with the price breaking through to new highs.

Stock picks

On that note, he ended his talk by mentioning a few companies that he currently likes, noting that stocks are an “excellent opportunity” to leverage the gold price turnaround he sees coming. Without further ado, here they are:

• GoldSource Mines (TSXV:GXS) — Spina said that GoldSource is his top pick for 2015, noting that the company is set to go into production at its Eagle Mountain gold project in Guyana. The low-cost, low-capex project has a NI 43-101 resource of 188,000 indicated and 792,000 inferred gold ounces with the potential for expansion. 

• Inca One Gold (TSXV:IO) — Inca One was Spina’s top pick for 2014, and unsurprisingly he still likes the company. It has a gold milling facility in Peru that services government-permitted, small-scale miners, and according to Spina has good margins and is not affected by the gold price.

• SilverCrest Mines (TSX:SVL,NYSEMKT:SVLC) — Mexico-focused SilverCrest produces silver and gold at its Santa Elena mine, and Spina said the company put out great numbers this past quarter. SilverCrest recently shifted to underground mining at Santa Elena, and Spina said it’s looking to increase production there.

• Fortuna Silver Mines (TSX:FVI,NYSE:FSM) — Spina described Fortuna as a “market outperformer,” noting that its operations are very low cost. The company is currently operating the Caylloma mine in Peru and the San Jose mine in Mexico.

• New Jersey Mining Company (OTCMKTS:NJMC) — New Jersey Mining Company might not be a familiar name for investors, but Spina believes it’s a company worth watching. It’s the majority owner and operator of a flotation mill and concentrate leach plant, and is currently processing ore from the Golden Chest mine in Idaho.

• Seabridge Gold (TSX:SEA,NYSE:SA) — Spina’s final pick was Seabridge Gold, whose KSM project is the world’s largest undeveloped gold-copper resource. The company received a positive federal environmental assessment decision for KSM in December, and Spina believes that it now has buyout or joint venture potential.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article. 

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