Haywood Analysts: Compelling Opportunities Left in Junior Golds

It has been an awful 12 months for the junior gold sector. Despite an 18% rise in the gold price, the equities are down 52%, according to Haywood Securities analysts Andrew Kaip and Kerry Smith. As investors worried about the health of financial markets, they moved their money out of the high-risk sector and the results were devastating.

The Haywood analysts note that there are now plenty of compelling valuations among the junior golds. In fact, the companies they cover are pricing in gold at just $480 an ounce, 47% lower than the current spot price.

They wrote in a note to clients:

The junior precious metals sector presents prime acquisition targets that we expect to materialize once a semblance of stability is restored within the broader markets.

However, they noted that investors should be focused only on the companies with good cash positions, good management teams and projects that are advanced enough to generate investor interest once the turmoil on the market subsides. They have realigned valuations of junior companies to focus on those names.

The best buying opportunities they pointed to in their coverage universe include: CGA Mining Ltd. [TSX:CGA], Lake Shore Gold Corp. [TSX:LSG], Linear Gold Corp. (LGCFF.PK), Andina Minerals Inc. (ADMNF.PK), and Anatolia Minerals Development Ltd. (ALIAF.PK).

Comments

[GMiki1:]

I agree, though I don't know the companies they name. Certainly there are a lot of solid companies that even have capital and are close to producing or are already producing. I wish I had a ton of cash, but I don't. However, I AM well positioned for the reversion, whatever you might call it.

The trashing not just of the equities, but of the metals and other resources has been insane. I can understand short covering and delevering but the panic selling and the thinking commodities are over is crazy.

And why is COMEX gold settling for cash? That makes the gold paper market sheer gambling with no there, there. Moreover, silver is so ridiculously undervalued that you can't buy it on the actual market for less than an enormous premium.

We live in a virtual, rather than material world? Image is everything?

2008 Oct 03 11:10 AM

[rpaulnews:]

The rich are determined! (banks & governments?) Drive the price of raw commodities into the dirt, wiping out increased production(exploratory developmental mining), while at the same time buying up the raw material as it is falling(us mint-coin dealers shortage). Can anyone say conspiracy? Prediction--The first government to announce gold standard currency wins the global game!

2008 Oct 03 12:26 PM

[marxbites:]

Would that that would be the good ole USA !!!!!!!!

I am listening to Frank, Hoyer in the House right now.

What a criminal government run by banksters and corp elites we have.

"The general spread of the light of science has already laid open
to every view the palpable truth that the mass of mankind has not
been born with saddles on their backs nor a favored few booted
and spurred, ready to ride them legitimately by the grace of God."

--Thomas Jefferson to Roger C. Weightman, 1826

Screw the establishment ONE PARTY system of criminals. The CFR/NWO/Int'l Banking cabal.

Search and read: A CHRONOLOGICAL HISTORY OF THE NEW WORLD ORDER

& "Wall Street, Banks and American Foreign Policy" at lewrockwell.com or mises.org

BOTH those websites are the tonic we indoctrinates of compulsory education need. Rockwell and Mises are resources for history and economics that squash the mealy mouthed apologist court historians that ruling elites commission to keep their criminal control as hidden as possible.

2008 Oct 03 12:57 PM

[GMiki1:]

If you all read Chuck Butler's *The Daily Pfennig* today, he explains why the dollar has risen. Because LIBOR has been so high, the European banks stuck with U.S. toxic waste have had to sell Euros to buy dollars because they need dollars in U.S. banks.

www.kitcocasey.com/art...?/

When LIBOR normalizes, supposedly the dollar high will revert. It's not that I wish the dollar any harm; I simply seek fairness. Apparently too much to ask in markets.

2008 Oct 03 03:52 PM

[growthvalue:]

IGRU.PK is my fav jr miner right now

2008 Oct 03 07:33 PM

[growthvalue:]

IGRU.PK is my fav jr miner right now. Best managment team and proven reserves of mag in the ground. Awaiting permitt

2008 Oct 03 07:34 PM