When gold is as hot as it has been lately, it makes sense to watch the actions of top management executives who have proven track records. With that in mind, I am beginning to trade positions in Jim Sinclair’s, Tanzanian Royalty Exploration Corporation (TRE): 5.96 0.00%, vol: 0, and Rob McEwen’s, US Gold Corporation (NYSE:UXG) 5.15 0.00%, vol: 0. Both of these well-known executives have been involved in the exploration and mining industry longer than most of us have been trading mining shares.
Jim Sinclair is a famous precious metals specialist, commodities and foreign currency trader.
Taken from Jim’s website:
From 1981 to 1984, Mr. Sinclair served as a Precious Metals Advisor to Hunt Oil and the Hunt family for the liquidation of their silver position as a prerequisite for the $1 billion loan arranged by the Chairman of the Federal Reserve, Paul Volker.
He was also a General Partner and Member of the Executive Committee of two New York Stock Exchange firms and President of Sinclair Global Clearing Corporation (commodity clearing firm) and Global Arbitrage (derivative dealer in metals and currencies).
In April 2002, shareholders of Tanzanian Royalty Exploration (formerly Tan Range Exploration) approved the acquisition of Tanzania American International, a company controlled by the Sinclair family, for shares in Tan Range. Following this transaction, Mr. Sinclair became Chairman of Tan Range and now leads its efforts to become a gold royalty company.
Rob McEwen is the former Chairman and CEO of Goldcorp (NYSE:GG)32.05 0.00%, vol: 0.
Taken from Rob’s website:
Rob McEwen is Chairman and CEO of US Gold and Lexam Explorations and the founder and former Chairman and CEO of Goldcorp, which is the world’s lowest cost million ounce gold producer. Rob followed his father into the investment industry and developed a passion for gold. In 1990 Rob jumped into the mining industry, where he transformed Goldcorp from a collection of small companies into a mining powerhouse. Since 1993, when Rob started restructuring Goldcorp, its market capitalization has grown from US$50 million to over $10 Billion and Goldcorp’s share price has increased at a 28% compound annual growth rate.
Since July 2005, when Rob became US Gold’s largest shareholder and shortly thereafter the company’s Chairman and CEO, its share price has increased by approximately 1,170% as the company pursues its goal of becoming Nevada’s premier exploration company.
Jim and Rob both have a strong vested interest in their companies' success by demonstrated by their holding a large number of insider shares. I like what I see from both companies as they are poised to become strong companies on the backs of proven leaders.
I exited a position in TRE yesterday at $5.85 and opened a position in UXG in the past two days under $5.50. I will likely trade in and out of both companies as we lead up to an expected rate cut in October.