With that as a backdrop, Canaccord Adams analysts Gary Lampard and Orest Wowkodaw figured this is a good time to look at which base metal companies in their coverage universe offer the most leverage to gold in fiscal 2010. The winner is HudBay Minerals Inc., which could have even more gold exposure in the future thanks to a discovery on its Lalor Lake project in Manitoba.
The analysts put together a list that lays out what percentage of revenue each company will derive from gold in fiscal 2010 (with minor adjustments).
HudBay Minerals Inc. (HBMFF.PK): 17%
Freeport-McMoran Copper & Gold Inc. (NYSE:FCX): 13%
Quadra Mining Ltd. (OTC:QADMF): 13%
Cameco Corp. (NYSE:CCJ): 13% (from its stake in Centerra Gold Inc. (OTCPK:CAGDF), which it plans to sell)
Inmet Mining Corp. (OTC:IEMMF): 12% (but that will decrease once the Troilus project closes next year)
First Quantum Minerals Ltd. (OTCPK:FQVLF): 10%
FNX Mining Company Inc. (OTC:FNXMF): 2% (has a sales agreement with Gold Wheaton Gold Corp., and is a Gold Wheaton shareholder)
Capstone Mining Corp. (OTCPK:CSFFF): 2%
Teck Resources Ltd. (NYSE:TCK): 2% (sold gold assets to reduce its debt load)
Vale SA (NYSE:VALE): barely above 0%.