Ram Rao,
Understand that I am not talking about the Canadian Juniors as a group. Many are not worth our money. Still I can't find in the SA gold companies. except maybe for Harmony, a vehicle that offers the kind of leverage the few best Canadians juniors explorers are offering, if gold would return to $400.
I am talking juniors with a few millions ounces of gold (or gold equivalent) in the ground that are currently priced at anywehere between $2 and $10 per ounce. When gold return to $400 and juniors are priced at $100-$150 and more per ounce in the ground that is when leverage will come into play.
<< From my own personal experience the financial viability of my Canadian Juniors is being questioned one by one as this bear market in PM's drags on. But so far the survival of ALL my South Africans is NOT in question>>
Then your selection of Canadian Juniors is poor. Stocks like Glamis Gold, Viceroy, Geomaque, Agnico, Goldcorp, Claude Res, Meridian, Richmont, River Gold and more will all survived as their financial situation is good or very good.
But these are producers... I am talking more about explorers which are not currently depleting their reserves at low gold prices. On the contrary, they are developing them for the next several cycles. They have large resources, no debt, cash in the bank and often a good senior partner paying for the development. OK they are not comparable to mid-tier and senior SA producers on that basis... But I am talking about leverage, nothing else.
<< I will challenge you to come up with a specific list of juniors that you think as a package will outperform my HGMCY, DROOY and RANGY combination going forward, and we can compare notes in 6 months or 1 years time. >>
Well I don't know about 6 months or 1 years time... let use gold $400.
And my picks would be Cumberland, Minefinders and Southwestern Gold.
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