Cash flow. Cash Flow. Cash flow. That's where investors should focus in 2015, says Philip Ker, mining analyst with PI Financial. Ker says that Canadian and Mexican gold producers are generating greater cash flow owing to a stronger U.S. greenback and more finely tuned mine plans. In this interview with The Gold Report, he shares his top stock pick for 2015 and some equity stories that could unlock further shareholder value with the drill bit.

The Gold Report: The U.S. dollar is worth about CA$1.20. In percentage terms, how is that translating to the margins of Canadian precious metals producers?

Philip Ker: Margins are obviously a function of revenues minus costs. Our model currently uses $1,250 per ounce ($1,250/oz) gold and a $0.90 or CA$1.11 exchange rate. This means we're forecasting CA$1,388/oz for Canadian producers, but a favorable strengthening of the U.S. dollar toward $1.25 or CA$0.80 would allow Canadian producers to realize gold prices around CA$1,560/oz-a 12.5%…

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