RG: The other one is Nevsun (NSU). I'll be the first to admit it doesn't really fit with the low political risk criteria, but it's a name I've covered for quite a while. The reason I covered it initially was the world-class discovery —the Bisha Project—they made about six years ago in Eritrea in Africa. They are now building the mine, which has gold, silver, copper, and zinc. The first couple of years of production are gold and there's three years of primarily copper production and then five years of zinc production. It's not a pure play gold company, but it's going to be gold to start. Quite frankly, it's one of the simplest and most attractive ore deposits in the world.

The risk with Nevsun and the reason the price is probably half of what it should be is Eritrea, which is a very young country with an uncertain risk profile. Over the last five years, Nevsun and the government have established a very good partnership where now the government is essentially a 40% partner in the mine. They have a vested interest to make the mine survive and be a successful operation because they're going to make money off it, too.

It's an extremely robust project and I think the country risk is overdone right now. They are building this mine, they have a $235 million project loan from several European and South African banks, and it's a great time to be buying Nevsun because you can buy it now for something that'll be a lot higher a year from now when they start producing.

http://seekingalpha.com/article/170413-r...