Investing in Gold Mining Equities: Assessing Management, Minerals/Mines & Money Society of Mining, Metallurgy, and Exploration: Current Trends in Mining Finance Doug Groh Tocqueville Asset Management New York, April 2013
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Tocqueville Asset ManagementDurable Investment Approach Backed by Substantial Resources
Objective: Long term exposure to a rising gold price. Investment Process (I)Return and Risk Management • Since Gold Bull Markets suffer periodic setbacks, we seek to mitigate portfolio risk via the following disciplines: • Rigorous primary and secondary research • Gold sector activities are monitored on a daily basis • Emphasis on diversification from a relatively thin universe of companies • Balanced portfolio exposure: • 15-20% Smaller exploration-type companies • 25-35% Mid-sized development companies • 40-50% Larger operating companies • Tactical allocations to physical metals or cash if we believe gold mining shares are significantly over-valued • Investment Thesis: The early-stage mining companies at the beginning of the discovery and development stage, we believe, often offer the greatest value opportunities.
Investment Process (II)Intensive Research Focused on Management, Minerals/Mines & Money
High risk Low risk Life Cycle of a Gold Mining StockIntensive Research Required to Identify Sweet Spots Source: Tocqueville Asset Management, LP References to securities or investments should not be considered recommendations to buy or sell. Past performance is not a guide to future performance. Securities that are referenced may be held in portfolios managed by Tocqueville or owned by principals, employees, and associates of Tocqueville, and such references should not be deemed as an understanding of any future position, buying or selling, that may be taken by Tocqueville.
Gold Stocks Represent Historic ValuesXAU (PHLX Gold/Silver Sector Index) as a Ratio of Spot Gold ($/oz)
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Policies for valuing portfolios, calculating performance, and preparing complaint presentations are available upon request. The Gold & Precious Metals Composite (the “Composite”) consists of only discretionary separately managed accounts in the Gold and Precious Metals Product which are at least $1 million in asset size at time of inclusion. Accounts meeting the Composite criteria are included in the Composite in the first full measurement period in which that account is under management. Currently the “Period” consists of the first full month. Prior to December 31, 2008 the “Period” was the first full quarter. The Composite returns are benchmarked against the total return of the PHLX Gold/Silver Sector Index (XAU). The inception date of the Composite was September 30, 1998. The Composite creation date was November 1, 2008. The Composite has not been independently audited. 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Doug Groh Co-Portfolio Manager Tocqueville Asset Management 40 West 57th Street, 19th Floor New York, NY 10019 (212) 698-0757 email@example.com For more information, please contact: