Resource World Magazine

a p r i l / m a y 2 0 1 5 www.resourceworld.com 21 Centerra Gold [CG-T] $7.81, Feb. 5, Claude Resources [CRJ-T] $0.61, Mar. 24, Dynacor Gold Mines [DNG-T] $2.59, Mar. 24, eldorado Gold [ELD-T] $9.68, Jan. 20, Franco-Nevada [FNV-T] $74.10, Feb. 2, Kaminak Gold [KAM-V] $1.15, Jan. 27, Klondex Mines [KDX-T] $2.80, Jan. 27, NovaGold [NG-T] $5.17, Feb. 4, Osisko Gold Royalties [OR-T] $18.85, Jan. 20, Richmont Mines [RIC-T] $4.55, Jan. 27, Rio Alto Mining [RIO-T] $3.99,Mar. 2, Royal Gold [RGL-T] $95.64, Jan. 27, silver Wheaton [SLW-T] $29.86, Jan. 27, Westdome Gold Mines [WDO-T] $1.40, Feb. 5. What do all of the above stocks have in common? All of them are resource compa- nies that through exploration, production, royalties or streaming have some exposure to gold. The other and more important commonality is that the prices shown are the new 52-week trading highs that all of these companies' shares have reached in the first few months of 2015. "So what," you say. Gold stocks tra- ditionally do well in the first quarter of the year. This is true, but the difference I see this year is that these companies are touching new 52-week highs while their underlying commodity is trading well below its 52-week trading high of US $1,388 an ounce set in March 2014. Now granted, these are 52-week highs and not all-time highs, but coming from the very depressed levels that this sector has been in over the past four years, I think that these 52-week highs just might be significant. If we look at the price of gold bullion, it's been trading in a US $250 an ounce range from about US $1,150 to US $1,400 for about two years now and only recently rose to a new seven-month high of US $1,308 an ounce on January 22nd. So if gold bullion isn't trading at a 52-week high why are so many gold stocks doing just that? You could say it's the usual New Year optimism. You could say it's the seasonal strength for the commodity and the resource markets. You could say it's just the market getting ahead of itself and it will once again collapse as in the past few years once we get into the second quarter. And based on recent history, all three observa- tions have merit. Or we could say that maybe the market is telling us something different this time. Maybe the market is sensing that the two- year bottom on gold is going to hold and that the long hoped for move up through US $1,400 an ounce may soon be upon us. Remember, markets tend to look ahead by as much as six to eight months. So perhaps these stocks are forecasting a year end price of gold somewhere above US $1,388 an ounce. Now, I don't have a crystal ball, and certainly the past few years have been tough on gold companies and their investors. But the gold market certainly feels different this spring – in a good way. Let's hope the market is right. n Rodney Blake is an Investment Advisors with Canaccord Genuity Wealth Management, a division of Canaccord Genuity Corp, Member- Canadian Investor Protection Fund. The information contained in this article is drawn from sources believed to be reliable, but the accuracy and completeness of the informa- tion is not guaranteed, nor in providing it does Rodney Blake, Canaccord Genuity Corp, or its subsidiaries, or affiliated companies, assume any liability. This information is current as of the date appearing in this article, we do not assume any obligation to update the information or advise on further developments relating to these secu- rities. This article should not be considered personal investment advice or a solicitation to buy or sell securities. Canaccord Genuity and holdings of its respective directors, officers and employees and their associations, from time to time may buy or sell any securities men- tioned herein. The views expressed are those of the author and not necessarily those of Canaccord Genuity Corp. Rodney Blake can be reached at 604-643-7567 or rod.blake@ canaccord.com New 52-Week Highs at t h e m a r k e t R o d B l a k e

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