(Every week, Business Edge columnist Gyle Konotopetz
profiles the top three stock picks of one of Canada’s most
accomplished investment pros.)

FEATURED PRO: Jean-Francois Tardif is a portfolio manager with Sprott Investment Management (www.sprott.ca), an
independent brokerage boutique specializing in small and mid-cap stocks with high growth potential.

Tardif is part of the team that manages the Sprott Canadian Equity and the Sprott Gold and Precious Metals funds that both outperformed the market in 2002. The Sprott Canadian Equity fund gained 39.3 per cent last year (five-year gain of 29.8 per cent) while the Sprott Gold and Precious Metals fund appreciated 116.2 per cent last year.

Tardif’s Perspective: “We continue to be very bearish on the economy and the stock market as a whole and bullish on gold. I believe the price of gold will continue to rise in 2003. We believe in the long term the price of gold will go over $500 (US per ounce). We focus on gold companies that are unhedged or have minimal hedging and strong management. We also like silver.

“We see a deterioration of the economy with the U.S. government facing a big deficit that is increasing almost every month. If they cut taxes in the U.S., the deficit will be even worse and the number of jobs is decreasing.”

Tardif cautions the featured stocks carry high risks due to the volatility of gold stocks.



FIRST STAR
* High River Gold (HRG-TSX)
* Recent Price: $2.23.
* 12-Month Range: $0.70-2.92.
* Snapshot: High River is a fully unhedged gold producer with properties in Canada (Manitoba), Russia and West Africa. CEO David Mosher was leader of the team that discovered the world’s largest uranium deposit, the Jabilaka deposit in Australia.
* CEO: David Mosher.
* Head Office: Toronto (140 employees).
* Vital Stats: Revenue (last 12 mos), $63.2 million; 5-Yr Revenue Growth, 12.8%; Profit/Loss (last 12 mos), $2.8 million loss; Market Cap, $191.29 million; Shares Outstanding, 85.78 million.
* Tardif’s comment: “This company generates a lot of revenue and cash flow and has just become profitable. In their last quarter through September, High River had $6.9 million of cash flow and a net profit of $1.5 million. Since then, the gold price has risen a lot, so they should do even better with that. It’s also important that they’re 100-per-cent unhedged. We also like the management. Because High River’s mines are in Russia, the risk is higher than with companies that have mines in Canada.”
* Tardif’s Risk Rating: High.
* Web watch: www.hrg.ca



SECOND STAR
* IAMGOLD CORP. (IMG-TSX)
* Recent Price: $7.34.
* 12-Month Range: $4.01-8.75.
* Snapshot: Iamgold’s richest gold mines are in Mali and South Africa, and the company also has exploration properties in Africa and South America. It recently bolstered its portfolio by acquiring another Canadian gold play, Repadre Capital.
* CEO: Joseph Conway.
* Head Office: Markham, Ont. (64 employees).
* Vital Stats: Current Price/Earnings Ratio, 35.7; Revenue (last 12 mos), $137.6 million; 5-Yr Revenue Growth, 15%; Profit (last 12 mos), $15.5 million; Market Cap, $1.04 billion; Shares Outstanding, 141.6 million; Dividend Yield, 0.68%.
* Tardif’s Comment: “We like the recent merger of Iamgold with Repadre, which may result in a higher valuation. They’re unhedged, they have tons of cash and they have mines that generate free cash flow. We also like themanagement. It has similar attributes (to) High River.”
* Tardif’s Risk Rating: High.
* Web watch: www.iamgold.com



THIRD STAR
* RICHMONT MINES (RIC-TSX)
* Recent Price: $5.74.
* 12-Month Range: $1.95-6.74.
* Snapshot: Richmont’s primary focus is on its
underground mines in Quebec and Newfoundland. The
company hired former Barrick Gold senior vice-president Louis Dionne as CEO in December.
* CEO: Louis Dionne.
* Head Office: Rouyn-Noranda, Que. (183 employees).
* Vital Stats: Current Price/Earnings Ratio, 8.3; Revenue (last 12 mos), $54.3 million; Profit (last 12 mos), $11 million; Market Cap, $89.13 million; Shares Outstanding, 15.53 million.
* Tardif’s Comment: “This company generates a lot of cash and they have earnings and, with gold rising, they will make even more money. We believe that very soon they’ll have $2 of cash per share. It also has very strong management.”
* Tardif’s Risk Rating: High.
* Web watch: www.richmont-mines.com
* Tardif’s Record (since June 27): +12.4%. Best Pick: Eldorado Gold +44.7%. Worst Pick: Kinross Gold -1.7%.
* Disclosure: The featured stocks are held in the Sprott Gold and Precious Metals fund. Tardif says he is invested in Sprott funds but does not own the individual stocks.