I’m pleased to report Premier Gold Mines (TSX:PG) is continuing, for the second year, to be a member of my website sponsorship program. The work at Allan Barry Reports is made possible through website sponsorship and having sponsors like Premier Gold is crucial for the success of the website and the work I do reporting on the mining sector.
Last month I was one of guest speakers at the PDAC conference, I presented my argument of why I think gold stocks are a great place for investors to put their money. In addition, I made some gold picks that I think will outperform their peers. Premier Gold was one of my top picks and have done very well since then.
I’m confident that gold is headed higher this year, you can find the reasons in this report I did about my talk at the PDAC. In the presentation discussing Premier Gold, I said that they are the kind of company gold investors would be wise to consider as a core holding.
My main argument for that outlook is they have an impressive portfolio of assets, from gold mines to exploration projects in some of the best gold camps in North America and great partners like Goldcorp and Barrick Gold. These are key reasons that in bearish trends for gold, Premier Gold doesn’t get beaten down as badly as their peers and when gold is in a bullish trend they outperform.
As is often the case in any industry, the companies that consistently outperform their peers is because they have strong management and Premier Gold fits into this category. They are lead by Ewan Downie, who has been gracious with his time and appeared on several of the past shows at Allan Barry Reports.
He has been around the mining business all his life as his father is also in the mining business, you can say it is in his blood. As all good leaders, he has surrounded himself with good people, I’ve covered the company since inception and they have always been talented at acquiring projects at timely moments and filled up their portfolio with an exceptional group of projects.
I’m such a fan of the company because they have built up their portfolio of projects like major mining companies of the past used to. That was before they started being run by bean counters, not rock guys. Ewan Downie and his team are definitely rock guys, you can see it in the quality of their projects. Whether you look at their exploration projects, or the mining operations they have bought into, there is always room for growth with the drill rig.
The biggest reason that I like what Premier Gold is doing starts with what happened in the last gold bull market from 2001 to 2011. During that time frame, the major mining companies really hadn’t done a lot of exploration for a couple decades or more, so they had to increase their reserves with the cheque book not the drill rig.
I believe we are in the early stages of another decade or more long gold bull market. And because the middle tier and large gold exploration companies were taken over in the last bull market it has left a void. There really are few middle tier gold companies, yet this size of company is crucial to the long term of the gold mining business.
They are the ones that go out and find new mines with the drill rig, and with so few around, the market is just begging for some to step into that opening. For those that have a strong management team, a portfolio of projects to help their short and long term goals, can step in and take advantage.
There are projects out there that need talented people that know how to find gold with the drill rig and that is exactly what Premier Gold has proven it can do for a long time now. I also believe we are coming into a time where there will be a revival in exploration and new gold mine development.
One of the reasons for this revival is because there just hasn’t been a lot of exploration success over the past few decades. This also creates another issue, there isn’t a lot of exploration talent out there.
Premier gold has two distinct advantages over most gold exploration and development companies. They have built a portfolio of projects that can move them into the middle tier and they have a team with exploration talent.
Going forward as we are in the early stages of a multiple year bull market for gold, and Premier Gold is well positioned for growth are why I consider them a core holding for investors that want exposure to gold stocks. They are well named as they are one of the premier gold companies in the gold sector.
The Business Part
Those that have followed my reports over the years know I’m all about being clear. For me to cover companies closely takes time and is costly to produce. Which is why I put together the website sponsorship program, now in its second year. With the sponsorships, I cover the costs of the added coverage and to produce my other reports for my readers and viewers at no cost.
At the beginning of 2016, after a multiple year bear market for resource stocks, I had no sponsors for my website and I ended the year with an impressive roster of sponsors. Premier was one of the earliest companies to take me up on the offer to join my website sponsorship program and I’m glad they have chosen to stay on board for a second year.
I’m delighted that Premier Gold has given me the chance to showcase them in my website sponsorship program for a second year. The website sponsorship program is $12,000.00 per year; I receive payment at the beginning of the program.
I’m not the only commentator that has website sponsors. What makes mine different, is that website sponsors don’t get to review or edit my written or video reports, they see the reports when everybody else does.
This way, you will know that it is my opinion of what is happening, I read their news and present my views on them when I see fit to write them up or interview them on my shows. I think this takes confidence from the sponsor company in my reporting and their projects.
I would like to thank the management of Premier Gold for being part of my website sponsorship program for the second year. Sponsors and consulting clients make my work possible. On behalf of my audience, thank you.
Whether I’m looking at a company to invest in, choose as one of my stock picks or a company I invite to be a website sponsor, they all must pass through the same filters. Premier Gold has been a company I’ve covered for several years, since they became public. They have been one of my picks before becoming a website sponsor and continue to pass the test on all counts.
When following a company as a pick or website sponsor, I like the ones that I expect to have a strong news flow and Premier Gold never disappoints. They are always up to something good with their current projects and have a way of surprising the market with news.
This has a way of amplifying performance during a bull market for gold and I like the way things are shaping up for gold to be in a multiple year bull market that started in January 2016.
During the multiple year bull market, I can easily see Premier Gold growing into a much larger company. In this scenario, Premier Gold should be a top of mind company for investors that invest in the gold mining space.
All the best,
Allan Barry Laboucan
Allan Barry Reports
Alset Energy (ION.V)
P.S. my reports are for information purposes only, before making any investment decisions it is important to do your homework and speak with your financial advisers.