Gold Stocks to Avoid... Maybe Not (BGO, CBJ, DROOY, HL)

I just ran across an article entitled Four Gold Stocks to Avoid which took a dim view of the prospects of Cambior (CBJ), Bema Gold (BGO), Hecla Mining (HL)and DRDGold (DROOY).

I'm taking the opposite view (with the exception of Hecla Mining, which has operations in Argentina). The author pointed out that these companies were all high cost producers. This means they have the most leverage to the gold price. A rising gold price will make a huge difference to their bottom line (from marginal to profitable).

The share prices of these companies will increase MORE than those of profitable gold miners. Watch and see.

Full disclosure: I currently own BGO.WT.TO

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