November 24, 2011

The Globe and Mail says Wickman sees value in:

Nevsun Resources (TSX:NSU)(AMEX:NSU)

The Globe and Mail attempts to identify gold producers that are good value plays in its Thursday edition.

The Globes Sonali Verma writes in the Number Cruncher column that she employed the services of Wickham Investment Counsel managers Michael Bowman and Allan Meyer to help screen for gold stocks with low price-to-earnings ratios, low debt and healthy cash balances.

Mr.

Meyer says, "A large number of gold stocks are hitting our value screens, something that has been unheard of in the past.

...

Of the 715 companies that we follow on a value screen, these gold companies are in the top quartile." He points to "substantial" increases in 2012 earnings over 2011 -- on average, the increase in the earnings per share for the companies Wickham recommends is 62 per cent.

The surging price of gold has lifted earnings substantially.

Mr.

Bowman says, "Companies are yanking the stuff out of the ground at $400 an ounce and selling it at $1,700 an ounce." Another reason the miners are popping up on the value screen is that gold stocks have not jumped as fast as the price of bullion has.

Wickhams top gold stocks are Nevsun Resources, Primero Mining, Iamgold, Aurizon Mines, Capstone Mining and Pan American Silver.

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