We're already heavy investors in the mining sector but are always on the lookout for new candidates to add to our long term portfolio.
The American mining firm Northgate Minerals (NXG.TO) is a stock that we started to buy late last week right at the new highs for the year. The next important level for it to crack on the Canadian $ price is the old 2004 high of C$3.43 (last week's high was C$2.73).
if you look at the 2 stock charts (C$ & $) they're slightly different because of the exchange rate moving around.
The company is medium capitalised at around $480m
Traded in both Canada and on AMEX, we always prefer to buy in Canadian $ if offered the choice
Reported good earnings last week of around $0.18 per share
We think earnings could top over $0.50 within 18 months
It has some derivitive/hedge exposure but this will likely be nullified this year (but as always these claims should be taken with a pinch of salt, it's therefore a black mark because)
Good gold/copper properties in Canada
Good management
Our target price IF gold and copper remain strong to stronger is over C$10
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