Aurizon Mines, Northgate Minerals & CGA Mining

Long Northgate Minerals: NXG@$2.65
Long Aurizon Mines: AZK@$4.75
Long CGA Mining: CGX@$2.05


Last weekend, by a stroke of fortune, I shared a bottle of 1985 Sainte Croix du Mont with friends who 'discovered' the vintage hidden away in their cellar. This is one of those appellations that sits opposite far more illustrious neighbours (Sauternes and Barsac) and, consequently, is one of the greatest bargains in wine world (look up prices for a surprise) despite rivalling the giants across the Garonne for quality. The 1985 had aged well enough and was a magnificent unclouded golden colour. Sometimes it is worth passing on the real thing for an honourable and much cheaper substitute.

Gold, also a magnificent golden colour, is another 'real thing' difficult to get worked up about as an investment unless one is a raving inflation nutter. We are in a deflationary event. Maybe the inflation will come. Maybe not.

However, the last week has seen a clear technical preference for the metal and, despite the portfolio already containing one gold miner holding as a hedge, I add these three Canadian diggers evenly in one additional position.

It is possible to laud them individually but the idea boils down to politically calm geographies (bar CGX), Canadian accounting, robust cash yields and the feeling that their energy costs will fall in the near term thus boosting margins.


NB: Once again, the portfolio software on this page hits its limits and cannot take TSE listed CGA Mining. Very unfortunate for tracking purposes but there it is, with apologies.