Philip Richards (Telegraph)

Philip Richards (Telegraph)

RAB Capital co-founder and Special Situations Fund manager Phillip Richards was interviewed by JT Long of the Gold Report.

RAB became well known natural resources investors during the past decade's commodities super bull market period (2004-2007).

Mr. Philips discusses the gold, silver, nickel, vanadium, zinc and oil and gas companies that he owns, including a shared position, Endeavour Mining.

TGR: Endeavour Mining Corp. (EDV:TSX; EVR:ASX) just released its Q1/14 results. Is it positioned to survive long term?

PR: Endeavour is a producer in the process of ramping up. Its 2014 production guidance exceeds 400,000 ounces, which makes it a decent midsized producer. Its cost is just below $1,000/ounce ($1,000/oz). At that level, it is profitable with gold at the $1,280/oz level, but clearly, it has a high enough cost that it will be leveraged to any increase in the gold price.

Endeavor looks pretty cheap on a forward valuation that assumes a rising gold price. People really don't buy gold stocks assuming a falling gold price. In their own way, both Endeavour (an established producer) and Victoria Gold (a proven deposit in a safe jurisdiction) give very good leverage to a rising gold price.

This is a great time for investors to take an interest in companies like Largo and Endeavor. Both have big projects that are now coming to the point of reality. One can buy in at share prices that are cheaper than they were a few years ago.

More: Less Correlation Among Commodities Demands More Careful Selection: Philip Richards