Peak Picks: How to Mine for Value in June 2025 with Dennis da Silva
Inside the Portfolio of Dennis da Silva: Why Gold, Gas, and Growth Are Back on the Menu
Dennis da Silva, senior portfolio manager at Middlefield Limited, has his eye on a familiar territory—resource stocks. In a market fraught with geopolitical tremors, unpredictable U.S. trade moves, and choppy commodity waves, da Silva believes that gold and natural gas remain the lighthouses for investors looking to navigate safely through the fog.
Navigating Volatility with Precious Metals
With gold prices still perched above the US$3,000 mark, the market narrative has shifted from whether to own gold to how much of it to hold. Da Silva sees upside—significant upside. Even though gold recently retreated from its record highs, it's still clocking more than 20 percent gains since November’s U.S. Presidential Election. The uncertainty surrounding Donald Trump’s return to the White House and his chaotic tariff regime has amplified investor interest in tangible, inflation-resistant assets.
Da Silva points to a telling disparity. The S&P/TSX Composite Index has an 11 percent weighting in gold and silver stocks, yet most institutional portfolios are still hovering around just 3 to 5 percent exposure. The misalignment, he argues, presents a re-rating opportunity of 20 to 30 percent as investors play catch-up.
The Case for Iamgold
At the heart of da Silva’s conviction is Iamgold. This intermediate gold producer is finally turning the page on its most ambitious undertaking—the Côté Gold project. Years in the making and plagued by budget overruns that ballooned capital expenditures to $3 billion, the mine is now nearing full production. Da Silva argues the narrative has changed.
By 2026–2027, Côté is projected to generate a free cash flow yield of 25 percent. That’s elite territory in the gold mining world. It also pushes Iamgold’s production to over 800,000 ounces per year, nearly doubling its current output. With declining operating costs and only six million ounces of its 20 million ounce resource base accounted for in the current mine plan, da Silva sees a high-beta gold play ripe for revaluation—and possibly acquisition. At gold prices north of $3,200, the economics look dramatically better than when the project first broke ground.
Crude Fatigue and Natural Gas Potential
While gold enjoys investor enthusiasm, oil isn’t getting the same love. According to da Silva, the market is almost universally bearish on crude, despite WTI stubbornly defending the US$60 per barrel level. He believes this consensus negativity could set the stage for a rebound.
Natural gas, on the other hand, is gaining traction as a medium to long-term winner. Liquefied natural gas (LNG) is becoming a cornerstone of global energy strategy, and demand is only heading in one direction—up. Da Silva warns that unless supply catches up fast, prices will have to rise significantly to curb demand and stabilize inventories.
Spartan Delta’s Undervalued Duvernay Bet
One of the more intriguing picks on da Silva’s list is Spartan Delta. A relatively under-the-radar natural gas and liquids producer, Spartan Delta went through a transformation in 2023. The company sold off its Montney assets, issued a special dividend, spun out Logan Energy, and pivoted to building a large-scale Duvernay oil play.
Da Silva believes the market has yet to fully grasp the scope of this pivot. With operations just north of Paramount’s project, the Duvernay play is rapidly becoming one of the hottest liquids-rich oil zones in Canada. Spartan Delta now boasts low debt, self-funded growth, and a deep inventory of assets that are shifting toward oil and condensates—a recipe for strong cash flow through 2029.
According to da Silva, the value of Spartan’s Duvernay assets alone could justify the current stock price, even before accounting for the company’s gas operations. He sees a significant disconnect between the market’s valuation and the asset’s actual potential—especially when peers like Paramount and Baytex are aggressively developing similar plays nearby.
Troilus Gold’s Massive Potential
The third name on da Silva’s radar is Troilus Gold, a small-cap developer with a monster resource. The company’s flagship project in Québec is a past-producing Au-Cu-Ag (gold-copper-silver) asset now progressing toward permitting and financing. Despite doubling in value so far this year, da Silva believes the stock is still deeply undervalued when compared to peers.
The numbers are compelling. Troilus plans to build a $1.1 billion open-pit mine capable of producing 300,000 ounces annually. Its 2024 feasibility study paints a picture of a long-life asset highly leveraged to the gold price. Even a 10 percent shift in the price of gold translates to over a 30 percent move in the company’s net asset value.
On the ground, the project is blessed with strong infrastructure, access to cheap hydroelectric power, and a sizable land package. The company is also in talks with export credit agencies, with four letters of intent totaling $1.3 billion already in place. With a current resource of 11 million ounces, Troilus remains one of the last large, undeveloped gold projects in the hands of a junior company—making it a juicy M&A target.
Why the Market Outlook Favors Hard Assets
The overarching thesis behind da Silva’s picks is straightforward: in a world of rising macro uncertainty, hard assets matter more than ever. Central banks are moving to diversify away from U.S. dollars, retail investors are looking for inflation hedges, and institutions are still underweight gold. Meanwhile, the supply-demand imbalances in the natural gas sector suggest that companies positioned correctly—like Spartan Delta—stand to benefit from rising prices and expanded margins.
As for gold developers like Troilus, the combination of leverage, scarcity, and growing investor appetite means there’s room to run. Even with recent gains, these companies still trade at significant discounts to their underlying value—particularly if gold continues its trajectory past US$3,200.
Conclusion: A Strategic Bet on Value Amid Chaos
Dennis da Silva isn’t chasing the latest tech trend or meme stock craze. He’s leaning into the tangible. Gold miners with real assets. Energy producers with expanding margins. Developers on the verge of breakout growth. In today’s market, that’s more than a conservative play—it’s a strategic bet on value rising from the rubble of macro uncertainty.
For investors willing to look past the noise, da Silva’s top picks offer exposure to some of the most underappreciated and potentially lucrative corners of the Canadian markets.