Royal Gold looks like it’s poised to take advantage of the soon-to-be-open Mt. Milligan project operated by Thompson Creek Metals Company Inc (USA) (NYSE:TC), with 52.25% ownership of the mine’s purported 6 million ounces of gold. Mt. Milligan is expected to deliver 262,000 ounces of gold annually for the first six years with production tapering to 194,000 ounces thereafter. Royal Gold, Inc USA) (NASDAQ:RGLD), after its $435-per-ounce payment for that gold, should net quite a handsome profit — even with gold well off its highs. Mt. Milligan, amazingly enough, remains on schedule and should begin production as early as August.
Tank you very much
I haven’t been a fan of the shipping sector in years, but I’m finally coming around to a few of the stronger candidates. This week I plan to add oil transporter Teekay Tankers Ltd. (NYSE:TNK) to the list.
Clearly, there are a lot of reasons to remain skeptical of shippers. Charter rates are down significantly from where they’d been just five years ago because of the recession, while oversupply of ships hasn’t allowed for contract rates to rebound as shipping demand slowly returned. Tack on Europe’s woes and there are enough reasons for investors to shy away from highly indebted and unprofitable shippers.
There are two particular aspects about Teekay Tankers Ltd. (NYSE:TNK) that caught my attention. First, the product it’s shipping (oil) is going to remain in high demand as long as China continues to grow and emerging markets in South America expand. There’s considerable stability in oil demand relative to dry bulk goods.
Also, Teekay Tankers Ltd. (NYSE:TNK) has close to half of its contracts locked into longer-term fixed rates. This gives the company some flexibility to set new contracts at higher rates should they come around, while also giving the shipper some predictability to its cash flow. With no debt maturing for the next four years, this looks like it could be cleared for a return to profitability and an eventual takeoff.
Foolish roundup
This week it’s all about realizing long-term projections. The Global explorers ETF, Royal Gold, Inc USA) (NASDAQ:RGLD), and Teekay Tankers Ltd. (NYSE:TNK) all look as if they’re finally going to meet investors’ lofty expectations, and shareholders should expect a nice rebound in all three stocks.
I’m so confident that these three names will bounce off their lows that I’m going to make a CAPScall of outperform on each one.
The article 3 Stocks Near 52-Week Lows Worth Buying originally appeared on Fool.com and is written by Sean Williams.
Fool contributor Sean Williams owns shares of Thompson Creek Metals, but has no material interest in any other companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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