A day's wage used to be a silver dime, a silver quarter, or maybe a silver dollar. A silver dime today costs about 48 cents, at $6.74/oz. for silver. About 900 million oz. of silver are consumed annually, and just under 600 million ounces mined annually. Oddly, there is is seven times as much refined gold as silver... Buy real silver, it is scarce, real wealth, and cannot go to zero value. By the time paper money fails mankind once again, as it always does, any silver dime you can lay your hands on will probably be worth more than what $100 to $200 will buy you today. You can buy silver now, or work for it later.
This week's report lists the market capitalizations for 85 silver stocks. There are 31 silver stocks that list reserves, resources (and exploration potential) which I calculate by using my "ounce in the ground" formula. There are 54 explorers. There are about 30 additional "silver" stocks with incomplete information. Additions & Changes from last week are in bold.
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To read about my religious bias, see my other web site, bibleprophesy.org There are two essays near the top of the page that explain why I believe the entire world will return to using gold and silver as money again before the end times. See Ezekiel 38. Also, see my essay: Biblical Guidelines for Managing your Money
Kitco reports silver at $6.85/oz. as of Friday, 2:14 PM West Coast US, which was used to calculate the following figures. The CAN $ / US $ conversion factor is .7703. I will use .77 for ease.
How to read the table below: Stock Symbol that works at Yahoo! Finance (Company name) / The number that follows the company name, below, represents the company's resources, divided by the market cap as denominated in silver; thus, it is the number of silver oz. "in ground" that you gain title to when you trade away one ounce of silver to buy 1 oz. of silver's worth of stock. The number is the expression of leverage that silver stocks can give you, the higher the number, the better. / Next, I list the valuation price change since last week (and stock dilution, and resource changes, if any) as up/down or even. / Finally, there are additional comments (EXPT is "exploration potential")
Company names in bold have summaries below with updated information since last week. Click on the name to see the summary below.
Please review the new format that has existed in the last few months. If I have updated any information about a company in this week, I put the name in bold. Now, you only need to click on the bold names, and it will take you directly down to the updated company profile, where the updated information will also be in bold, such as new diluted share numbers.
This first list are the companies with information about reserves/resources/exploration potential. The list is ordered/ranked based on the resource picture. The most expensive (with the fewest silver resources given their market cap) are listed first.
ABX (BARRICK) 0.93 up --producer, hedger (15? mil oz. gold hedged, 3 yrs production)
This next list has silver exploration companies with market caps under about $30 million (Market cap = total number of shares fully diluted, times the share price. It's what the company is "worth" in the market place, given the stock price, and is one of the important numbers I calculate each week in these lists.)
* = I own shares. There are expanded profiles on each company, way below. But before I get to that, let me discuss my methodology, and the problems with it.
See the number above, listed after each company in the first list? That number represents the number of silver ounces in the ground that you get when you buy an ounce of silver's worth of stock. The number treats all reported ounces in the ground as equal, however, they are NOT EQUAL. Some ounces in the ground are more certain and others are more speculative. Some are higher grades, some are lower grades. Some have been well drilled, others have less drill results. They range from most certain to least certain such as: "proven & probable reserves," and then, "measured, indicated, or inferred resources." A reserve has a feasibility study produced for it. A resource, does not.
Here's the math on how I calculate that one number. First, I get a market cap by multiplying the fully diluted shares (which bullishly assumes all options and warrants will be exercised and converted into outstanding shares) by the share price in U.S. dollars. Next, I divide that by the silver price, so the market cap is denominated in terms of silver ounces. Then, I divide the ounces in the ground by the market cap as denominated in silver. This produces the single number of how many ounces of silver in the ground you are buying when you give up one ounce of silver in your hand, for shares of stock, instead. This way, you can not only compare silver stocks to each other, you can compare them to silver directly. This also helps people in other nations, using other currencies, to value these companies.
This valuation does not include zinc, or copper, or lead, but it does include gold at a 1:10 ratio of gold:silver. At goldsheetlinks.com, they add 100% of proven & probable reserves, but only 70% of measured & indicated resources, and only 50% of inferred resources. I don't do that. I count them as all the same.
I believe that the two most important numbers that a silver mining company can report are the resources in the ground, and the number of their fully diluted shares. Of course, there is much more to a mining company than that, but without those numbers, it is extremely difficult to even start an evaluation. This report highlights those key numbers, where possible. If you think those numbers are also important, please email the executives of the mining companies you own, and ask them to make sure their numbers are clearly published at their websites.
Problems with my methodology: My methodology assumes that the more ounces in the ground, is, in theory, best, given that I expect much higher silver prices. However, unless the price of silver really moves much higher, my methodology may not be the best one. If silver does really move up very high in value as compared to today, then I expect my methodology to be one of the best predictors of rising stock values, because more ounces in the ground mean more leverage to rising silver prices. However, the companies with greater leverage to the upside usually also tend to have greater leverage to the downside, and thus, tend to be more volitile.
Other factors to consider that the single number produced by my methodology does not: A resource calculation number does not tell you the entire picture about a company. The resource calculation number is designed as a starting place for further research. Other very important considerations are as follows: How much existing mining infrastructure is in place? The more the better, so think of it as a "bonus". How much cash does the comapany have on hand, and what is their burn rate? What is the management's attitude towards money, silver, hedging, debt, and dilution? This is why I list "additional comments" in the company profiles, below.
I don't consider grade to be too important (although I list it when I can), because I consider the cost to mine to be the more important consideration. The "cost to mine" is determined in a feasibility study, which is the last thing produced before trying to raise money for final construction of a mine. And usually, they cannot even count silver as a resource unless it is at least somewhat feasable to mine at today's prices for silver. And this is why I count all the ounces as the same. If a low grade ore can be mined more cheaply, and if a higher grade ore costs more to extract, and if it has to be somewhat economically feasible even at these low silver prices to be counted, it balances out quite nicely.
To quickly "tab" down to the company you are interested in, note the symbol. Then hit "control-F" to "FIND" the symbol below. ___________ If I use a word you don't understand and is not listed in the dictionary at www.m-w.com you can look up the meaning at http://investorwords.com/
I have updated the information for 8 companies this week. Check the company names in bold, above.
After I did tonight's weekly calculations, I noted that most silver stocks were up about 10% this week. That is also the approximate performance in my own personal portfolio, and also in my marketocracy.com silver stock fund, up 13.46% for the week. ------------- The government says that inflation is... how low is the number of this lie these days? 2%? Not counting oil, which just hit $49/barrel on Friday...
H.6 (508) Table 2 MONEY STOCK MEASURES Percent change at seasonally adjusted annual rates ------------------------------------------------------------------------------ M1 M2 M3 ------------------------------------------------------------------------------ 3 Months from Apr. 2004 TO July 2004 0.4 4.4 6.0 6 Months from Jan. 2004 TO July 2004 5.9 7.0 8.6 12 Months from July 2003 TO July 2004 4.0 3.6 4.8
I think they are creating new money at quite fast rates (8.6%) if they are paying only 1.25% on bonds, don't you?
I have long believed that the world will return to using gold and silver as money within my lifetime. Lately, I have been thinking about how the world will return to using gold and silver coin as money. There are many, many issues involved in this topic. First, God is in control of governments of the world (Daniel 4), and second, God gives men the rulers we deserve.
Therefore, the United States cannot expect good presidents (who would return us to the gold standard) until the people of the nation return to God. If the people are evil, so will our leaders be evil, and there is no changing this. We reap what we sow. Presidents must pander to the majority to get elected. If the majority are immoral, it is mandatory that our presidents will be immoral as well.
God sets up to rule over men, the basest or lowliest of men. (Daniel 4:17)
Think about what would happen for a moment if we were blessed beyond this Godly rule, and if our prayers were answered, and if God himself were to become president. First of all, given the moral state of the people of the U.S. let's realize that God certainly would not be elected by the majority. But what would happen? And what would God do about our fradulent money situation? Well, from my reading of Romans 1 and 2, God gives men up to their lusts, meaning that he lets us choose evil if we choose it. Although God is quite permissive in this day and age, his basic laws are immutable, that men will ultimately reap what they sow, and men right now are sowing the seeds of monetary disaster. Dollars, and unjust weights and measures, are clearly an abomination to the Lord, yet God allows them today, because men choose them.
Too many men have abandoned all that is just (and who have been deceived) and are keeping the fraud of the dollar alive.
What would I do if I were president? Would I pass an executive order declaring that all dollars should be utterly worthless? I just don't see that as being productive, nor acceptable by the public, nor acceptable by God's laws, as a fair solution. A fair solution would be to let the people who wish to do so, buy gold and silver. In this way, scarce gold and silver would be allocated on a first come, first served basis, or go to the highest bidder, which is just and fair, and that's happening right now. I would certainly encourage this process along, just as I am now doing.
I'm not saying I would want to keep the fraud of the dollar alive... but what could I do? Would I issue a decree, given what I see now, that all banks that exist within the Federal banking system and are backed by FDIC... that their accounts as denominated in dollars should be backed by gold, and then make government gold available at $35,000 per ounce? But who would buy it at that price today? Such a move would also not be productive. So, what would I do? Perhaps I would simply sell government gold and silver to whomever had the wisdom to buy it, as the government is doing today? After all, it is quite clearly evident that if the government runs out of gold and silver, that government money will be totally worthless.
A study of the free market shows us that the people will use gold as money when the people demand to use gold as money. But if the people demand to be defrauded, or consent to be defrauded, how can you bring about justice?
Today, I see little political support for the sound money bill in New Hampshire, unfortunately. As little interest as there is in silver by investors, there is even less interest in this bill, unfortunately.
But how could it be any other way at the bottom of the market? Market bottoms are created when there is the least investor interest, that is also another axiom, or market rule.
The people are not going to rise up and demand to use gold and silver when the prices are at historic lows, and when the values of their fraudulent paper money are at absurd highs, like today. No, the people will want the government to maintain the high value of their paper bonds that most everybody has! Think of the relative values of the respective piles of wealth as votes.
$20,000,000,000,000 in bonds $9,000,000,000,000 in M3 $300,000,000 worth of silver.
Which are the people voting for by what they are choosing to own? Obviously, the vast majority of people are voting for paper, and not silver.
So, how will the world return to using gold and silver as money? I'm tending to think it will only be when the majority of the people demand it, and this will only occur when the majority of the people suffer tremendously the losses that will continue to be inflicted upon them because they hold paper money.
As it stands in the past year and a half or so, silver has moved up from $4.15 to $6.85 now, which is up 65%. Thus, the people who are holding paper, earning 1%, have lost about 64% if measured by silver. Today, few use silver as a measuring yardstick to value their paper money by, but eventually, they will, and they will see the wisdom of holding silver instead of paper.
The good news is that massive and tremendous losses can now be inflicted upon the majority by a very small minority who can see enough truth to buy silver.
As I have repeatedly said each week, if only 1% of paper money holders decide to buy gold and silver within one year, that will be the end of the entire paper money system. Don't believe me, just look at the numbers!
$20 trillion in bonds $9 trillion in M3
As I say each week: "A mere 1% is $290 Billion, which, at $500 /oz. is a massive demand of 18,039 tonnes [of gold]"
But with annual gold demand at a mere 4000 tonnnes, and with annual mine supply standing at about 2500 tonnes, there is just no way in the world that the world could sustain a 1% shift of paper money into gold without pushing the gold price to well past $1000/oz., and who knows how high!
And silver? A mere demand of $1 billion could send the price soaring to $20-30/oz.
Therefore, a righteous minority can wake up the deceived majority, and we can inflict tremendous monetary pain upon them. As Isaiah puts it:
Isa 30:17 One thousand [shall flee] at the rebuke of one;...
That's a tenth of one percent! So, if the U.S. has 300 million people, we need about 300,000 silver investors. Too bad my list is only 11,000, but I'm working on it!
The really amazing part is that the money system is growing at 8.6% per year right now! Yet, if only 1% flows to gold and silver, the system will die! Amazing but true! I feel like this is a fantastically unbelievable statistic, something right out of "Ripley's Believe it or Not!" Future generations will look back and be amazed by the stupidity of this generation.
We can affect radical societal change for the better by buying gold and silver, and we will be much better off for it, and will also be richly compensated for it as well, as the values of our precious metals rise.
So, how will the world return to using sound money? Probably not by willing choice when the price is low. Probably only by the time the price is high, and when the public demands gold and silver in preference to paper fraud.
How do you think the world will return to using gold and silver as money? Do you think we will get there? And when? Email your thoughts to me: email@example.com
Next week, I would like to take the time to expose some of Alan's comments. I believe his idea of a "gold standard" is perplex, and is really a paper money standard that is perceived to be as good as gold, where there are no runs on gold. His essay from 1981 should really be titled, "Can the U.S. continue to use paper money, or is paper money finished?" Or perhaps, "How the U.S. can keep the fraud of the paper money system alive as long as possible."
The author mentions over and over again the death penalty in the Coin Act of 1792 that was never enforced at any time in our nation's history, and he mentions the many occasions when it should have been enforced.
Perhaps when people demand gold and silver coin as money, at that time, the U.S. will need a leader who will be willing to enforce that law? -------------
If I was in charge, there are many things I would change. I would not outlaw usury, for example, but I would not support it at law. In other words, I would not give usury contracts the protection of law, just as today, loan sharks cannot rely on the government to enforce performance of their loans. But if you get a home loan, and if you cannot pay, the banks can use government force to evict you from your home, and sell it on the market! Contract law does have limits; you can't sell a public bridge, you can't sell yourself into slavery, you can't engage in fraud (in theory). For my prior essays on Usury, please see Usury Enslaves - 19 January 2004 and Freedom from Usury23 January, 2004.
One of the changes that a few gold bugs often discuss is the supposed necessity for regulation or transparency of "over the counter" derivatives. A derivative is simply a contract. Men have the power to sign private contracts with one another. It's as simple as that. We cannot force all men to reveal the contents of their private contracts. Private property demands privacy. Why do I feel I need to remind my fellow goldbugs of the 4th Amendment to the Constitution?:
Amendment IV - Search and seizure.
The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.
Now, if people are to be secure in their papers, then this means they can have private contracts, or over the counter derivatives, unregulated. The only reason for the government to step in and nose about in people's papers is if there is a probable cause to search for them. A probable cause only exists when there is evidence that a person has done wrong, as determined by a judge who will issue a warrant, or if there is someone willing to swear an oath to that effect.
What I would change is the ability of public companies to engage in private contracts. I don't think it is fair that a public company can engage in private contracts that their shareholders may not know about. A company can literally sell all the assets of the company and defraud all the shareholders, and the shareholders will not know a thing about it! This is wrong. A public company has an obligation to report their financial condition on regular annual and quarterly reports. But if a public company can engage in private contracts to deliver silver or gold at various prices, and not disclose that, then what is the point of requiring financial disclosure? Silver and gold are money, and they need to be treated as such by the law. Unfortunately, the law today has been perverted to uphold paper as money, and to hinder gold and silver's use as money.
But I feel that it is futile to demand that our current government should enforce such a change, to prevent public companies from dealing in non-transparant, over-the-counter derivatives. And why? Because this government is actively working to keep the price of gold and silver low, through leasing and derivatives! We can no more expect them to stop than we could expect them to start telling the truth. And how can we expect the financial liars in power in government to stand up and do right and make corporations (who hide their lies with more lies) start telling the truth? We can't.
Now, I mention all of this because it is a fact that any one of my silver companies that I own has the right, without telling me about it, to sell their silver, and hedge it, and lock in a price at some insanely low price ranging from $5-20/oz.! That's the way it is, and that's not going to change! If that does not scare you about investing in silver stocks for the leverage, it should! Stocks are risky! And especially so in an environment where I expect there to be wildly rising prices, and very volatile prices. I hate the fact that my companies can hedge silver, and not tell me about it. This is why I am so keen on two things. First, understanding management's views on silver, and it's why I place such a strong emphasis on it. This is also why I'm so keen to preach my view on silver... so that hopefully, no silver manager will make the horrid mistake of hedging my silver which would destroy my silver investment by giving away my silver assets at low prices.
But there is a way to protect ourselves besides demanding that the government protect us. We must know our companies well. Buyers must beware!
WE MUST KNOW OUR SILVER COMPANYS' MANAGEMENT POLICY REGARDING HEDGING. This is perhaps even more important than the number of shares, or the ounces in the ground. So far, I have been too neglectful of this, in this report, partly because many of these companies are so far away from producing that they have not even considered this topic yet. Also, I realize that many of these companies don't want to put a stranglehold on their options for financing. They may want to be able to borrow money from the banks to finance, to be able to mine. But as I plan for my own future with regard to my silver stock investments, I have begun to think more and more about bank financing. I think bank loans are exactly the wrong strategy for financing a silver mine.
The reason is that banks have the power to create bubbles with their loans. If banks loan money for housing, they create a housing bubble. If banks loan money to lay down internet cables, they create a bubble of excess internet infrastructure. If banks loan money for silver mining, they will create a glut of silver on the market which will be counterproductive for all silver investors. What's worse is that banks can create price bubbles at will through this process of loaning money. They can loan all kinds of money for production, and then stop loaning, and sell silver in high amounts. Then, the mines who all borrowed money to produce silver at what they thought was a good price, could watch silver plummet, and then the loans can be called in. The mine then becomes the property of the bank, and the shareholders get nothing.
If a mine cannot be financed through issuing stock to the public, then the public obviously does not need the silver. The explorers and miners need to trust the free market process, and trust that they will get more than enough money thrown at them through equity financing if the silver price is high enough. Part of why I do what I do is to help insure that the silver miners will be able to find equity financing! And if the silver price moves back down after an equity financing, at least the silver stock remains debt free, and the stock price has no reason to drop to zero. The free market process is the most effective way to allocate resources, and have a prosperous economy. Central banking is a bane on mankind, and banks that create money out of thin air are mortal enemies and are competitors of the mines that create real money out of the ground through the hard work of mining it.
The entire idea that banks and mines can do business together is an appalling thought. In my opinion, gold and silver miners who borrow money from banks do not understand the first thing about the product they produce, or the business that they are really in.
This is why it is so important for silver companies to own silver bullion. If the miners hold silver in preference over paper cash, they are showing investors with their actions that they "get it" and understand their product.
A liberal argument that I've heard nearly my entire life is that "the rich are getting richer," as if that's somehow bad? It's not so much an argument, as it is an appeal to covetousness, socialism, and communism. But God has said that we shall not covet the property of others. Proverbs is a book of wisdom in the Bible, and right near the beginning, it compares thieves to communists. Make no mistake, communists, socialists, and liberals (and all who suggest raising taxes) are covetous thieves. The thieves say they will share the spoils among themselves.
Proverbs 1: 8My child, obey the teachings of your parents, 9and wear their teachings as you would a lovely hat or a pretty necklace. 10Don't be tempted by sinners or listen 11when they say, "Come on! Let's gang up and kill somebody, just for the fun of it! 12They're well and healthy now, but we'll finish them off once and for all. 13We'll take their valuables and fill our homes with stolen goods. 14If you join our gang, you'll get your share." 15Don't follow anyone like that or do what they do. 16They are in a big hurry to commit some crime, perhaps even murder. 17They are like a bird that sees the bait, but ignores the trap. 18They gang up to murder someone, but they are the victims. 19The wealth you get from crime robs you of your life.
The Bible version is the Contemporary English Version. (People have suggested I don't quote from the KJV, as it's too hard for people who are unfamiliar with archaic English.)
The contemporary gang is now the entire two-party political system, the Democratic party, and also the Republican party that has done nearly nothing to reduce taxes now that they finally came to power in the house, senate, and Presidency.
The contemporary means of theft is the entire paper money banking system, taxes, and inflation.
The contemporary trap that lies in wait for the thieves is the destruction of all paper money. They will only end up shortening their own lives, as their false and fraudulently stolen wealth will vanish, and then what will they do to survive if they are not killed by the impoverished mob?
The essential implication of their argument that "the rich are growing richer", is that this is somehow bad for society, and that such wealth growth must be stopped through taxes on the rich, who must not be paying "their fair share". I hate that argument, too, because the wealthy do pay more. They even pay the income taxes of the workers who work for them! Where do you think their worker's income comes from? It comes from the profits made by their employers! And if such income taxes on US workers are too burdensome, they will take their business offshore, or sell their business to invest in silver instead.
Taxes do not help society grow. They help the governmental parasites grow, and that's it. Actually if government workers were merely parasites, it would not be so bad, but they are worse than parasites, they actually restrict economic business with their rules. It would often be better if we paid the government regulators to sit at home and do nothing and stay out of our productive lives!
But let's get back to "the rich are getting richer". First of all, I would argue that if wealthy people are growing richer, such is a sign of societal growth, which is a good thing! If the rich grow richer, it proves that economic opportunities for all people exist, which should be the reason that government exists. But if the rich are growing poorer, then you must be living in someplace like Cuba or worse, and you better get yourself on a boat, plane or train, and get yourself to another nation, and fast!
It would not hurt me, not one bit, if one man held half or even 3/4 the gold in all the world, live on property the size of Australia, and could hire 100,000 servants to cater to his every desire. And why not? Because his gold hoard would just make the rest of the gold all the more scarce and more valuable!
But what does it mean that the rich are getting richer anyway? As measured in dollars that are inflating, the rich must increase the number of dollars they own, just to stay even! So, of course the rich must be getting richer, as measured in dollars!
But to what do you compare the rich? The poor? The Bible says the poor will always be with us. And the reason is very clear to me. Many people are lazy, gluttonous, stupid, drug-using, alcoholic, idol worshippers. They will probably never grow rich until they first cleanse themselves of their sins. Imagine how productive a person could be if they always worked, never rested, ate little, never did any drugs or drank, and never wasted any time on any idle and worthless pursuits. Many people are amazed by my productivity, but I drink a bit from time to time, and am sometimes lazy, sometimes I play games, and take time off. I imagine how much more productive I could be. And if I'm a shining example, then no wonder many people are poor.
You also cannot compare the rich to the poor because what is poor? Zero dollars? Well, of course then anyone with money will always have more than the poor! The poor have nothing by definition!
Or, the poor have less than nothing, as the poor are often in debt, or increasing their debt! So if the poor have less than nothing, well then of course the rich are going to be richer than the poor!
In truth, ever since 1980, the wealthy, as measured by the value of their gold and silver holdings, have been growing steadily poorer! Shocker! Yes, it's true! The socialist argument is not only incorrect in it's assumptions about whether it is a good thing or a bad thing if the wealthy grow wealthy, but it is also a lie for the past 24 years! The wealthy have, in fact and truth, only grown more poor! If you held true wealth, gold or silver, from 1980 to today, you saw your wealth decrease, as gold's value was attacked by the paper money pushers!
The only escape from this awful conclusion of communism is to rush to gold and silver for wealth protection, preservation, and growth.
Readers tell me about silver stocks. For this, I'm very thankful. And it takes me a lot of research to pour through them. But of all the tips I get, very few get my attention. Finally after many months, I think I got another really great one, almost unbelievable it is so good. This particular silver stock, I believe, based on historical estimates, (not 43-101 compliant) may have about twice as much silver reserves and resources in the ground per ounce of silver's worth of stock than Avino--which profiles the best on this free silver stock report, except for Unico. This month, the subscribers to my personal portfolio got a look at the name of this company before all of you, who receive this free report. And yet, my subscribers paid little attention, mostly due to the reduced market interest in silver stocks. But why did they get this tip? Because I bought some prior to August 1, and it was in my portfolio, and that's the deal. But I just could not yet put it on this list, because I'm still not done buying it. If you signup to the look at my portfolio, you can get the name of this stock, and a brief profile of it. It is highly unusual that the look at my portfolio contains anything close to a stock tip, or trading advice, but this time, this might qualify.
Pay attention to the companies that advertise. Some of my best investments were in companies that advertised. I saw a banner ad for Sterling Mining at silver-investor.com, David Morgan's web site, about a year ago. I followed the ad, looked over the company, and saw little information that I could see to make a buying decision, back when the stock was 25 cents/share. Finally, at 50 cents/share, I bought some Sterling Mining stock, simply because I liked the company's philosophy, to acquire silver properties, and the stock eventually reached a high of about $13.00/share a few months ago. All that, from paying attention to an ad!
From my many discussions with mining company executives, I know that they often will begin an advertising program when they become aware that their stock is under-priced by the market. Those companies who are advertising tend to feel that their stock is cheap. This is a very good clue for investors, because it means that management will be less likely to want to do a large share offering (diluting the value of your investment) until higher prices are reached.
One of the best clues to know when to buy a stock is if you see insider buying. I love seeing insider buying. Insiders may sell a stock for any one of numerous personal reasons, such as personal portfolio diversification, or to raise money to live on. But insiders buy stock for only one reason: they think it's cheap.
It is exceptionally extraordinary if you can find an example where you are buying a stock below a price that insiders were recently paying for it, or if you can buy a stock below a recent financing. I have always made money on this strategy, so far. For example, I acquired Canadian Zinc at .11 Cdn, below .15 Cdn, the price of a prior insider financing, over a year ago. I acquired Formation Capital at lows, ranging from 21 cents to 25 cents, below other recent financings, and today stands at about 43 cents Cdn. I acquired Metalline at $1 in a financing below the price of insider buying at $1.30, and Metalline recently traded as high as $3.00.
The stock that was highlighted in the Aug. 1 "look at my portfolio" is also priced at 2/3rds of the price of a recent financing. Now, I have recently shared many of such examples, where a stock is trading below a recent financing, with my readers in recent reports. But this stock has significant historic silver reserves and resources also, at the best price I've seen.
I just don't understand who is selling or why. I think it's an institution who just wants out of this illiquid market sector, and that's fine by me.
Oh, yes, this company is also advertising elsewhere. What do you know! But the company is not yet on my free report, and when it is added, I suspect the company may rise 50% to 100% in a week! I've seen such price action before, when a company was added to this free report, and buried way down, and not even featured. For example, when I first added O.T. Mining. See here:
Now, it's not guaranteed that the stock will go up when I add it to this list. I thought Plexmar would go up when I added it to this list, but it didn't really move much, and then the bottom fell out of the silver stock market right around that time.
So... why should I hype a stock tip like this? I don't need the $34 per signup, on the perhaps 5-15 signups I anticipate I may get by hyping like this. So, why? Most of the money, anyway, will go straight to my many advertising partners, affiliates, or my marketing team. See, advertising costs money, and I want to expand my market reach. But I'm tired of blowing my money on marketing, if people have no interest. So, this is a way for me to both measure market interest, and it's a way to self-fund advertising growth. It's like a church. It grows if people donate.
Also, people should not be buying silver stocks unless they can afford something like a $34 hit for a tip. Most commissions are larger than that.
If you really want to donate to my work, and if you have not done so already, simply buy a "look at my portfolio" in the size package you like. Simple as that.
The other reason to hype the look at my portfolio for this one stock is that I feel I already let the cat out of the bag a little bit, since it already went out to existing subscribers, and yet, the stock didn't really move, neither in price, nor volume. Therefore, I think I can continue to buy some myself, even if a few people signup and get the tip. So, I hope it's not too counterproductive by making this offer. See, my problem is that I actually stand to lose money by letting out a stock tip before I'm done buying!
Finally, I suppose there is a benefit if people signup, and start to bid up the stock a bit. It would be confirmation that they like what I like, and there is a bit of safety in that. In fact, some market experts say not to increase your holdings unless the stock price begins to go up. But they are trend investors, and I'm not. I'm a value investor, and I'd rather finish buying at current prices, and not have to buy any at a higher price. I also don't care if it dips up to 25% temporarily if I'm done buying, because I'm that confident already. Therefore, I don't need any confirmation from others.
But studying market sentiment is worth it. For if 30 people sign up next week to the $34 look at my portfolio, yes, my webmaster team will make about $1000. But if that happens, I'll be more inclined to spend $2000 (280 silver rounds) to hire a publicity agent. It's not an uneconomic business plan, since I make more on the capital appreciation of my portfolio, and on the finder's fees. But I shouldn't spend the money if people are not willing to listen. Instead, I should keep the 280 silver rounds. ------------------
Every now and then, people ask me about an old silver stock or gold stock they once owned. Usually, I know nothing about them. But I just found out a service that may be helpful. Old Company Stock Research Service http://www.oldcompany.com/
They will offer to buy old certificates that are worthless, considering them like used stamps--merely collectibles. I would be cautious about this, and get a second or third opinion about a stock before parting with your certificates.
---------------- About bullion dealers. Way back in 1998, I thought I would become a bullion dealer. I still have not yet done any profitable bullion dealing. For me, the risk of default seems too high. I only like a "cash on the barrel" method.
What I have learned, though, is that few bullion dealers seem to make any serious money from bullion dealing. Surprising, but true. It seems they do something slightly different to make money.
Anglo Far East Bullion company, for example, mints their own silver shekel coin. But the minting cost of these coins is staggering! They cost $25/oz., if you do the math. The cost of their gold shekel coins contains a much smaller premium by comparison, at only about $500/oz. The silver shekel coins make them less of a bullion coin, and more of a collectible, or novelty item. http://www.anglofareast.com/
Northwest Territorial Mint, for example, also mints coins. They are the largest private mint in the U.S. They mint for the Pentagon, and they mint the popular one-ounce silver rounds. But they also make many different kinds of commemorative medallions, which is their larger business. If you want a small run of, say, 100 silver rounds to commemorate a wedding, or something like that, a custom designed polished silver coin will run between $13 to $45 each, depending on how much you want to spend on engraving services. They basically are in the business of putting "art on coins". They are also a large bullion dealer, with the best prices anywhere on one-ounce rounds, at 45 cents over the spot price if you buy in bulk. http://www.nwtmintbullion.com/
Tulving is the dealer that I regularly use these days, because his buy and sell spreads are so narrow, and I know I get a good price when I sell silver for my living expenses. Yet, in Tulving's bio page, http://www.tulving.com/htinfo.html he says his main focus and recommendation are numismatic coins: In his opinion, the place to be? PCGS MS69 and Proof 69 Deep Cameo certified Gold, Silver and Platinum American Eagles, PCGS Modern U.S. Comemmoratives, and PCGS Proof and Mint State State Quarters. http://www.tulving.com/
And have I found success bullion dealing? Not yet. I surprised myself by earning finder's fees from private placements, which are orders of magnitude more than I make from the web site purchases of the "look at my portfolio".
If you are an Accredited or Sophisticated investor and want information I may find out about private placement opportunities in some of the very best silver stocks in my opinion, (This is not a solicitation for any stock, and I'm not brokering any securities) you can sign up to receive such a notice by adding yourself to my private placement list at http://www.goldismoney.com/subscription-pp.php
Because I have a market reach, I also receive a lot of tips about silver stocks. And thus, I believe I may have invested in some of the best ones that came my way. If you believe I may have an edge based on my work and unique position... then the best way for me to share this with you is to is tell you more precisely where I put my money. It's not investment advice. I offer a monthly "look at my portfolio". I do not issue recommendations, and I don't list number of shares or the size of my portfolio, but I will show the top investments in my portfolio, by rank, updated monthly. It includes which stocks are 9% and more of my portfolio, those between 9% and 6%, under 6%, under 3%, and under 1%.
If you have any questions about billing or order fulfillment, you need to contact my support staff at firstname.lastname@example.org and not me. I manage a large portfolio, and I don't have time to process billing requests. I don't bill any cards, my support staff handles all of that. The toll free telephone customer support line is: 877-895-6824.
------------------- The Anglo Far East Bullion company has offered me a service. They will be hosting a conference call titled, "SILVER'S EXPLOSIVE FUTURE" with Jason Hommel. (August 27th at 6.00 PM west coast Pacific time) --available to the first 200 people who register at http://www.anglofareast.com/teleconference.html (so far 50 people have already registered, over 2 weeks in advance)
The Anglo Far East Bullion company is also working on a web-broadcaster for the call so that it can be available live on-lineand are hoping that this maybe will be available in time for this month's call.
Please take a moment to register now, before next week.
------------------- General Commentary on Silver (slightly modified from last week):
Now, I think it's time that the silver community started a letter writing campaign to the editors of newspapers around the world, to tell them about silver.
Here is a sample letter:
May 21, 2004
I'm a silver investor. I believe paper money is fraudulent. There is over 30 trillion dollars, U.S., worth of bonds in the world, but less than 2 trillion dollars worth of gold, according to gold.org.
As of April, 2004, the size of M3, the money in U.S. banks, has reached 9.1 trillion dollars, yet due to fractional reserve banking, the total of U.S. currency and coin in circulation is only 724 billion dollars as reported by treas.gov.
At silverinstitute.org and cpmgroup.com, they each report that silver has been in a deficit for about 15 years, where world mine supply has been about 500 million ounces, scrap supply about 200 million ounces, and industrial and jewelry demand about 800 million ounces. The difference, about 100 million ounces, has come from investor and government selling, drawing down reserves of silver. Known supplies of refined silver are down to about 250 to 600 million ounces. At the COMEX, they are down to 48 million ounces of silver left that is registered for delivery, which you can see at nymex.com.
The governments of the world are printing up too much paper money, and the world is running out of real money, silver. I believe this will lead to the price of silver rising dramatically in value, around the world.
I urge your readers to verify the statistics I have provided, and to make their own decisions.
------------------ I wrote an article: Miners to Use Silver as Cash - 27 November 2003 Apparantly, I was about 6 months too early in my predictions, but that's ok, I'm a very long term thinker and investor. I did not miss the mark by too much time, and if you think in terms of decades, I was right on the mark. There are several companies that are increasingly deciding to hold their cash in the form of silver bullion. These companies are:
SSRI SSO.V (SILVER STANDARD RSC) SRLM.PK (STERLING MINING) NPG.V NVPGF.PK (NEVADA PACIFIC GOLD) EDR.V EDRGF.PK (ENDEAVOUR GOLD) ------------------ The Silver Valley in Idaho is bringing back the use of silver as money. A silver one-ounce coin, a "Sterling" to be used as a $10 piece. http://shoshonenewspress.com/index.asp?Sec=News&str=2869 ------------------
For news on the New Hampshire Sound Money Bill, that proposes to use U.S. Treasury minted Silver Eagles and Gold Eagles as money see: http://www.goldmoneybill.org/
Send any donations you can, to: [These are not political campaign donations.]
SOUND MONEY FOR AMERICA, c/o Henry W. McElroy, 15 Iroquois Rd, Nashua, NH 03063 ANY AMOUNT, ANY LEGAL TENDER CURRENCY - U.S. OR FOREIGN !
For more info, contact Rep. Henry W. McElroy, NH State Representative Sponsor of the bill 603-233-5892
Harvey Wharfield 978-635-9586
We also need assistance with the following.
1. Please contact your local representative to your state government. Find out whether they might support a similar "sound money bill" in your own state.
To contact your state rep to the federal goverment, see http://www.house.gov/writerep/ To contact your state rep to your local state government, you will have to find that on your own. Try searching for "contact state representative california" and replace the name of your state in the search.
2. If you know of any local representaives to your state government, who may be GOOD, LIKE MINDED REPRESENTATIVES, SENATORS, and GOVERNORS, who may like to support, or sponsor, a sound money bill in your state, please tell them about the NH initative. Copy the above, and send it along to them. And call Henry W. McElroy or Harvey Wharfield, and let them know of the other reps who may assist the cause.
3. If you have an email list to people who may be interested in gold and silver as money, or who may be good conservatives, please send out this notice to the list, so the project can move forward!
-------------------------- There are two excellent annual silver surveys that are sponsored by industry.
The two reports present the case that about 500 million oz. of silver are mined each year, about 200 million oz. of silver comes from scrap, and about 100 million oz. of silver comes from investor dis-hoarding, either by individuals or government sources, in order to meet the annual demand of about 800 million oz. of silver by industry & jewelry. This is wildly bullish, because investors are net selling more than buying, and I think the potential of investor demand is huge, and can be measured by seeing how much paper money there is in the world. --------------------------
Here are two U.S. Government produced reports on silver, containing data on years from 1900 to present, on U.S. & world production, and U.S. consumption, and U.S. industry & government stockpiles.
-------------------------- Silver consumption, per capita, in the U.S. is the same today, in 2004, as it was in 1945.
And what is the per capita consumption of silver in the U.S. today? 5500 tonnes x 32152 = 177 million ounces of silver used per 285 million people. 177 / 285 = .62 oz. silver consumed per year, per person, in the U.S., whether in 1945, or in 2004. Each person in the U.S. today, on average, uses 6 tenths of an ounce of silver. -------------------------- See my article: Biblical Guidelines for Managing your Money
As the New York Times, January 11, 1859, page 2 said--- "It is well known that the most colossal fortunes the world ever saw have been based on silver mines..." --quote found by Charles Savoie ----------------------------
WHERE and HOW to BUY SILVER BULLION http://www.goldismoney.com/buy-gold.php ---------------------------- My 2004-2009 price predictions for gold and silver: 2004: $595/oz. gold, 50:1 ratio = $12/oz. silver 2005: $1011/oz. gold, 30:1 ratio = $34/oz. silver 2006: $1719/oz. gold, 10:1 ratio = $172/oz. silver 2007: $2923/oz. gold, 5:1 ratio = $ 585/oz. silver 2008: $4,969/oz. gold, 1:1 ratio = $4969/oz. silver 2009: $8448/oz. gold, 5:1 ratio = $1698/oz. silver 2010+: infinity dollars/oz. gold, infinity dollars/oz. silver.
I calculate the gold price rise by guessing that by 2009, M3 will have a "gold-value" like it did in 1980, which is to say, M3 was worth 2 Billion oz. of gold or less. It also assumes M3 will about triple in that time. These figures are conservative, because I see no reason that M3 should be valued more than the gold the U.S. actually holds, which is a mere 261 million oz., not billion. Today, the M3 value is $8870 billion / $425/oz. = 19 billion oz. of gold M3 could buy in theory. The silver:gold ratio is also a very, very vague guess, reflective of monetary demand chasing silver, which is more scarce than gold in above ground, refined form. I have no idea when the ratio of 15:1 will be exceeded, I'm just totally guessing. I suppose it could happen this year or next month for all I know. Of course my real price targets are infinity dollars per oz. for both gold and silver when all is said and done, I just don't know how long that will take, nor what year it will be. But my point in producing the price predictions is to show my bullishness for silver and gold.
Note, there is virtually no monetary nor investment demand. Note, the 2002 mine production (585 mil oz.) is greatly exceeded by industrial, photo, and jewelry demand. (838 mil oz.). Note the chart on page five, "Supply from above-ground stocks".
The difference between mine supply and industrial demand was met by a combination of three factors: 1. Government selling, 2. Private selling, 3. Recycling
U.S. government selling is ending, as their stocks have run out, or will run out. This factor will reverse, because the U.S. government will need silver to continue their coin program, and/or need silver when they wake up and decide they need to replenish their strategic stockpile for domestic security. Silver is a war material. China's selling of silver will also likely turn into buying, as China will need silver for continued industrial development, or when they also lose faith in the U.S. dollar.
Private selling has been rapidly shrinking and is now almost ended, and should turn into buying, and become monetary demand. Monetary demand is everything in the silver supply / demand situation. It's not now. Now, it's nothing. But it will become something incredible, because the dollar is dying.
Ted correctly points out that a lower price creates excessive demand from consumers. However, Ted Butler does not point out, and neglects to mention, that a perpetually low price also creates lack of demand from investors who are "trend investors".
I think most silver experts over-analyze all the supply and demand factors of the silver market. No factor is more important than monetary demand. The force of photographic demand is like a light breeze compared to the hurricane or tornado of monetary demand. Monetary demand is everything. ----------------------------
Consider the gold market for a moment: Even short selling at the COMEX is nothing compared to monetary demand. The short position most certainly helps to depress the price of gold as the short position is growing larger. However, it adds fuel to the fire if there is short covering, and thus, it can boost the gold price later. But the commercial short position on the COMEX is next to nothing compared to the non-reported "over the counter" trading that is done that does not appear on the COMEX.
(Numbers in metric tonnes, 32,152 oz. per tonne.)
870 tonnes -- the paper position at the COMEX, 280,000 contracts for 100 oz. each. 5,000 tonnes -- the official number admitted that the central banks have sold. 15,000 tonnes -- the number GATA research shows that central banks have sold / or leased. 30,000 tonnes -- the number of official central bank gold, minus either the 5000 or 15,000 tonnes. 145,000 tonnes -- all the gold mined in the history of the world. 2,600 tonnes -- annual mine supply 4,000 tonnes -- annual demand
And all of that is nothing compared to the amount of dollars out there that exist that could buy gold. $20 trillion bonds, $9 trillion M3 = $29 Trillion. A mere 1% is $290 Billion, which, at $500 /oz. is a massive demand of 18,039 tonnes. Do you understand what that means? That means that far, far less than 1% of dollars, in either bonds or M3 can buy gold, because there simply is not that much gold available.
Long before 1% of U.S. paper dollars tries to buy gold, gold will be going up well over $1000/oz., and silver will be headed up over $50/oz.
---------------------------- To scare away investors--that is the entire reason gold and silver are manipulated in the first place. Only the trend investors can be deceived. The problem is that nearly everyone is a trend investor. Very few investors understand value. If people knew the facts and used their brains, the available above-ground refined silver would be gone by tomorrow, and the price would be well over $20-50/oz. But don't trust me, check the numbers and follow the links:
"The money chart"
1,000,000,000,000: 1 Trillion dollars 1,000,000,000: 1 Billion dollars 1,000,000: 1 Million dollars $45,153,000,000,000: U.S. Household wealth, as of first quarter, 2004. (Includes Real Estate, and investments) $33,000,000,000,000: World bond market, yr end, '01: http://tinyurl.com/vr7u
For a while I was using M3 and dividing that by the US gold (261 million ounces), which implies the us dollar is 84 times more valuable than it should be, and that gold should hit $34,000/oz. after the fraud is destroyed. Today, I realize I need to add in the Bond market, because bonds are an asset class designed to siphon away and replace real money, which is to say, gold. This gives a price of about $111,111/oz. for gold. At $ 430/oz, this implies that US bonds and paper currency are 258 times more overvalued than gold.
Gold is overvalued relative to silver, because at current prices, it takes 68 ounces of silver to buy 1 ounce of gold. Historically, this ratio was 15 or 16. Given the silver shortage, this ratio will hit 10:1 or 5:1, or even 1:1. Thus, gold is perhaps 68 times more overvalued than silver.
Silver is overvalued relative to certain select silver stocks, perhaps by a factor of 3 or 10 or 20 to one.
Thus, if you multiply all those numbers, 258 x 68 x 10, You will see that bonds and currency are overvalued relative to select silver stocks by a factor of 139,000 to one. In other words, if silver stocks reach their true value, and paper currency disappears as it always does, then you might expect certain silver stocks to go up in relative value by a factor of 139,000 times more than they are worth today. By that time, you should definitely sell the silver stocks, and buy gold.
Can silver stocks really appreciate so much? Is there historical evidence for such a crazy thing? Yes.
See http://www.sterlingmining.com/old.html Excerpt: "CDE rose from penny stock status (.02 in 1967) to an NYSE-listed, $60 per share stock in 1980. In fact, the average share on the Spokane Stock Exchange rose in value nearly 16000% (yes, sixteen THOUSAND percent), as America could not get enough of silver and silver stocks."
CDE rose by a factor of 3000, or 300,000%, and by 1980, the metals boom was stopped short, and paper money's death was postponed. If paper money dies a death that lasts a generation world-wide, then even greater gains should have been expected.
For this reason, a wise silver stock investor should NEVER sell silver stocks for paper cash. A wise silver stock investor who looks for value would never sell a fairly valued silver stock for an overvalued silver stock that traded for hundreds of thousands of times more value than it should be. Likewise, there is no excuse for a silver stock investor to have any cash or money market or bonds in his portfolio for any reasonable length of time, except for when selling one silver stock to raise the cash for another silver stock, or for when you need to raise the cash to buy silver, or a private placement in another silver stock.
So, if you want some fairly liquid alternatives to cash, in case you don't know what other silver stocks to buy at the time, here they are: 1. Buy silver. You can hold silver in an IRA. 2. Buy CEF. Central Fund of Canada, ticker symbol CEF. It's gold/silver bullion fund. It has 50 oz. of silver for every 1 oz. of gold. The fund is fairly liquid, you can buy it as easily as any other stock, and is a good cash substitute. Unfortunately, given the current ratio, about 55% or more of the value is in gold. 3. Buy a fairly large cap silver stock, with fairly large volume, that is stilll fairly cheap on the list. SSRI is probably the best candidate.
The sheer stupidity of big money not recognizing the value of the world's remaining silver is utterly shocking to the rational mind. Clearly, bond holders are utterly deceived, and totally unaware of the situation. All my readers should understand and know that bonds were originally invented to suck the capital and money (gold and silver) away from the people. Bonds today are a paper promise to repay paper. What a con game! Are bond holders conservative and safe? No, they are fools! There is nothing safe about holding a paper promise to receive more paper when we have been experiencing hyperinflation for the past two and a half years!
---------------------------- And the fund investors who buy paper silver futures contracts instead of real silver are a very odd bunch of fools, for they should realize that nobody can deliver 800+ million ounces of silver promised in the paper contracts and options that does not exist. It's like the paper longs are betting on the bank run happening, but they all are making sure they get at the end of the long line. Instead, they could go front and center, where there is an open window available where you can go and get physical silver, and nobody is there. Idiots! If you know a bank run is going to happen, and you are actually willing to bet on it, then go and withdraw your money before it is too late! Don't bet on it happening, which, if it does happen, your contracts will be defaulted on! Amazingly blind idiots. Wake up!
How bullish am I on silver? Here's an interesting way to put it: "68 times infinity" dollars per ounce.
I believe the dollar will eventually be destroyed, likely within my lifetime, hence the "infinity" part. I believe the ratio of silver to gold may be equal during a spike, when the market realizes that above-ground refined silver is more rare than gold. Thus, silver may outperform gold by a factor of 68 times better. Currently, the ratio is 68 ounces of silver can buy one ounce of gold or 68:1.
I may end up selling silver for gold, some at the 10:1 silver to gold ratio, some more at 5:1, and I would sell any silver remaining at a 1:1 ratio, that we may hit during a supply/demand crunch during a paper money collapse.
How we can tell if silver is leading gold, or if gold is leading silver? IE, which is going up more, faster than the other? The way you can tell is by looking at the ratio. If the silver:gold ratio is going up (say, from 60:1 to 80:1), then gold is moving up faster (because it takes 5 more silver oz. to buy an oz. of gold. If the ratio is going down (from 60:1 to 40:1), then silver is moving up faster. So, keep an eye on the ratio.
A good website that hosts posting boards for many of the smaller canadian stocks (that Yahoo! finance does not have boards for) is stockhouse.com Click on "Bullboards". ----------------------------
This is a list of primary silver stocks.
I count a company's ounces of gold as 10 oz of silver. Why? Because I have a very strong positive bias in favor of silver over gold.
Given my bias in favor of much, much higher silver prices, then, to me, the grades of silver are far less important than buying more oz. in the ground. More oz. in the ground at a lower cost is the most important consideration for me.
My method is simple. Cost per ounce in the ground. How much do you get (silver reserve totals), and how much does it cost (market cap)? The cost is the market cap divided by the silver reserve totals. Cheaper is better. Buy low, sell high.
Disclaimers, Warnings, and Advice: I have gathered the information below over the course of several months. I believe it is accurate to the best of my ability. I have made mistakes in the data from time to time. I'm human. I have collected the information from public sources such as company web sites and public information found at yahoo.com to get the stock prices. This report in no way guarantees the accuracy of the information below, since the information may change at any time. The number of outstanding shares can change as a company engages in new share issues to raise more capital through private placements, or if outstanding warrants (and options) are exercised and converted into shares, or if shares are bought back. Shares can be consolidated, or split. The number of ounces of silver in the ground can also change, as these are often only estimates. The number can also change up or down, depending on drilling results.
This report is not investment advice. This report contains information that may or may not be up to date, and may be inaccurate. I urge you to contact the company and do your own research to verify the information contained in this report.
This report is not an offer to buy or sell any securities. I am not a broker. Only your broker can buy or sell securities for you.
I urge you to consult with your investment advisor to determine whether these kinds of investments are right for you.
I also caution you to be aware of your investment advisor's advice, they are sometimes paid to push things like mutual funds, bonds and other securities that may not be in your best interest to buy. Some investment houses are short physical metal, and thus, they may attempt to strongly discourage you from buying precious metal or precious metals investments. I believe that the propaganda machine in support of frauds such as bonds and the dollar is so strong, that they may even believe what they say when they give bad advice to avoid the safety and protection of precious metals. It is most likely that they simply do not understand the precious metals market as well as you do.
All total estimates of "ounces in the ground" can vary widely. There are "proven and probable reserves" which are the highest category of certainty which is obtained through many drill holes, and then at the least accurate, there are "inferred resources" which are hardest to estimate. Additionally, every miner always has "more silver properties that need to be explored, which probably contain more silver". For the purposes of this report, I have added all those numbers together. It is believed that all these "ounce in the ground" estimates can be profitably mined at $5-6 per ounce silver, or lower. Thus, I believe that when silver trades for $15/oz. or above, that all of these ounces can be mined at a substantial profit.
I may be wrong. (I probably make mistakes in every article, and there have been updates and corrections made each week, especially as prices change.)
Mining is a risky business. You need to be willing to sustain a total loss of your investment for various unforeseen accidents. Silver stock companies can do stupid things to shareholders such as take on debt, or issue more stock at too low prices which reduces the percentage of the company you may own (dilution). Yet, they need to issue shares to raise capital for drilling, and then an even bigger dilution to build a working mine. They may sell YOUR silver too cheaply, or worse, hedge the price of YOUR silver just as it begins to go up if they lock in a price which then proves to be too low if the dollar is destroyed. Mining is a risky business as estimates of assets in the ground can change. There is political risk and environmental risk. They can't franchise the business, are stuck in one location, are subject to government confiscation, or taxes, or union wage negotiations, and corporate looting.
Do your own research. Be responsible for your own investment decisions. Again, please, before investing in a mining company, call up the company, and speak either with the CEO or the Investor Relations contact person.
Contact the company. Check the company web site, read the annual reports, check my numbers, check my math, and email the company. That's what they are there for, to answer your questions, and to speak about the opportunity of the company. Don't trust everything you read over the internet. I am a biased source. I own silver mining stocks. And I'm not a broker, nor an investment advisor. I'm just a private investor trying to make sense of this crazy world, and sharing my information and thoughts on silver companies.
Beware of scammers. Surely, there are scammers in the mining industry in the past, and there will be scammers in the future. Remember the fraud of Bre-X. The new 43-101 compliance laws put in place after Bre-X will not prevent a "certified" geologist from lying if he feels lying will create a better payoff. The Bible warns, "trust no man", yet at the same time advises us to "cast our bread upon the waters", and to not issue "false allegations" against others. Physical gold and silver provide the "payment in full" as long as the coins or bars themselves are genuine and not fake.
This report may be copied, and transmitted by other people, and may become outdated by the time it reaches you.
I can't tell you how you should invest your money, of course. The reason is that I don't know how convinced you are of the silver bull market, nor do I know how soon you will be needing the money back, so I don't know how long you can wait to see results, nor do I know how much liquidity you need. Nor do I know the size of the money you have to invest. It is very hard to invest large quantities of money in a small market cap stock.
That being said, my investment strategy seems to be working for me, so far. And so, here is how I have started an initial valuation process of the following silver companies to guide my own investment decisions.
---------------------------- (Market cap is always converted to US dollars and denominated in US dollars because I divide by ounces of silver, which are also denominated in dollars)
The Market Cap is the usual tool to value a company. It is what the company "costs to buy" if you could buy the entire company, all the shares, at the latest share price. It is calculated by multiplying the share price, by the total number of shares that the company has issued. In reality, you could almost never buy an entire company at the price of the Market Cap, but only a small portion. Usually, even small buying pressure, such as trying to buy 1% of a company, can push up the price of a stock by up to 10-50% higher. In my reports, I list Market Cap in terms of millions of dollars as "$75 mil MC".
To calculate the Market Cap, I try to get and use the number of "fully diluted shares". A company creates shares when they sell them to investors in what are called "private placements", or "initial public offerings" (IPO). These usually consist of shares and warrants, sold for cash that the company will need to grow and expand.
The "outstanding shares" is the number of shares that exist out there if you count them all, and it does not count the warrants, which are like options. The investor can "exercise the warrants" which is a right, but not an obligation, to buy more shares from the company at the set price of the warrant.
If the company does well, and the stock price moves up, all the warrants will be, or should be, exercised and converted into shares, especially if they become "in the money", and the warrants are significantly cheaper than the stock price.
Now, "fully diluted shares" is the total number of shares, plus the warrants, counting warrants as if they were all exercised and became fully trading shares. I think "fully diluted shares" is a better number to use to calculate market cap than by using "outstanding shares" as most do.
Finally, I go beyond valuing a company based on Market Cap alone; instead, I value a company by dividing the Market Cap by the assets of the company, which are usually the silver reserves in the ground. Thus, I can get a sense of what you are getting for what you are paying. And then, I denominate the whole thing in terms of silver, and not dollars, to get a more constant measure.
---------------------------- (These first four companies, BHP, GMBXF.PK, KGHMand BVN produce a lot of silver, but look to be way too expensive to buy for the silver exposure for your portfolio.)
BHP Billiton Ltd (BHP) http://www.bhpbilliton.com/ email@example.com IR --'produces 40 mil oz. silver annually from one mine' Additional comments: unfortunately, BHP has a 57 Billion market cap, so we can't buy BHP for the silver exposure. IE, $53 Billion / oh, say, 1000 million?????= $53/oz.
Dear BHP: By all means, keep mining the silver if you want the silver exposure, and want to be in the silver business. But don't sell the silver. Keep it. Let the profits of your entire company accrue as an increasing physical supply of physical silver. In fact, do as Buffett did, and buy more silver if you can. It would be infinitely easier for you to buy silver from yourself than it would be to buy 40 million ounces of silver from the COMEX, which, today, might be impossible.
KGHM Polska Miedz http://www.kghm.pl/en/index.php firstname.lastname@example.org --KGHM is the world`s sixth-largest coppper producer and second or third in silver. 1163 tonnes of silver produced in 2001. 1163 x 32152oz.tonne = 37.4 million ounces of silver produced in 2001 --Copper/Silver mine in Poland. --Market capitalisation is about $$1.52 billion.
Grupo Mexico SA de CV (GMBXF.PK) http://www.gmexico.com/ http://www.gmexico.com/Html/contactUs.htm 651,646,640 shares (2002 annual report) @ $4.00/share $2606 mil MC "Grupo Mexico ranks as the world's third largest copper producer (copper at $1.24), fourth largest producer of silver and fifth largest producer of zinc." They produced 28.2 million oz. of silver, worth $129 million, in 2002. (P. 5, annual report.) Total value of produced metals: $2527 milllion. (but the company lost money in 2002). They mainly produce copper, 900,000 tons worth $1.5 billion in 2002. Thus, silver, at 2002 prices, is only 5% of their production value. Silver is a by-product for them, not a main product. I don't have silver reserve figures, nor do I see any need to find them or add them, since they are not a primary silver producer, and I don't think anybody would be buying them for the "silver exposure". If we assume 280 mil oz. of silver (ten years reserve for production), then we stilll don't have anything exciting for the silver alone. $2085 mil MC / 280 = $7.45/oz. cost.
Compania de Minas Buenaventura SA (BVN) http://www.buenaventura.com/ email@example.com (IR) NYSE:BVN - Peru´s largest publicly traded pprecious metals company --produces over 10 mil oz of silver per year --looks way too expensive for the silver alone: 2.7 Billion market cap. -------------- -------------- --------------
ABX (Barrick) http://www.barrick.com/ firstname.lastname@example.org (IR) 535 million shares outstanding(1 Q 2004) @ $20.30/share $10,860 million Market Cap 5.5 million oz. / year gold production. --production hedged out for 3 years, or about 15 million oz. (most notorious hedger of the industry, the "leader") --price of hedges locked in near the market lows, perhaps $340/oz. on average, nobody knows for sure, because Barrick will not say --reportedly, Barrick is trying to "unhedge". --reportedly, they plan to deliver 1/3 of production to hedges, which means they will be hedge free in about 10 years. --the size of the hedge, 1 Q, 2004: 14.7 mil oz. gold, at $400/oz., would be valued at $5.9 billion dollars. --but they claim to be "debt free", if you ignore the gold they owe for delivery, at locked in, low prices. (only true if gold is not money) --cash: $850 million Silver Reserves reported to be 850 million ounces! Gold Reserves reported to be 86 million oz. (x 10 = 860 mil oz. + 850 silver = 1710 mil oz. "silver equiv." $10,860 million Market Cap / 1710 mil oz. = $6.35/oz. silver You may get "approx" .93 ounces in the ground for 1 oz. silver's worth of stock, if the silver isn't hedged.
Additional comments: Barrick earns $26 million in first quarter. x4 = $104 million, which gives a P/E ratio of 103. Ouch, that's high. The hedge book loss was $10 million.
Over the years, Barrick has hedged their production, which many claim has helped to depress the price of gold and silver, by artificially adding to supply. (Barrick's promises becoming the extra supply.) The declining price of the precious metals has put other miners out of business, which Barrick has acquired at low prices. If Barrick goes bankrupt due to their hedges, and rising gold and silver prices, then perhaps Barrick's many properties will, once again, be sold at distressed prices.
About a year ago, perhaps spring 2003, ABX made an announcement about covering 30 million ounces of silver they sold short. Then, a large buyer showed up in the futures contracts for about that amount.
1 Q 2004 note on hedging silver, p. 33: "At March 31, 2004, we had fixed-price commitments to deliver 22.3 million ounces of silver over periods primarily of up to 10 years. We also had written silver call options on a notional 7 million ounces of silver with an average exercise price of $5.76 per ounce. These options expire at various dates in 2004 and 2005. The options are classified as non-hedge derivatives for accounting purposes.
Looks like they never closed out the silver hedge, like they said, but that they just bought options or futures that expired, or maybe were rolled over. I don't know whether they stilll have paper contracts that offset their hedges. In fact, perhaps the dip in the silver price can be explained by the options that Barrick wrote on some silver?
I expect silver bullion to continue to outperform ABX stock at these prices. I don't really count Barrick as a silver company... Let me be abundantly clear. I primarily list Barrick to show how poorly it compares to all the rest, and to help show how much better the rest compare. This is a "comparative valuations" report, after all.
IPOAF.PK (INDUSTL PENOLES) http://www.penoles.com.mx 397.5 mil shares outstanding (2003 annual, unchanged since 2001) @ $3.90/share $1550 mil MC 419 proven and probable reserves of silver (from 2002 annual report on website) $1550 mil MC / 419 oz. silver = $3.70/oz. You get "approx" 1.85 ounces in the ground for 1 oz. silver's worth of stock.
Additional comments: Industrias Penoles is the world's top producer of refined silver. They actually derrive more revenue from silver than any other source. But they lost money in 2002. Produced 21.5 mil oz. silver 1 Q 2004 (Net earnings of $342.5 million 1 Q 2004)
The word late Feb. 2004 from ECU Mini, who reported to lemetropolecafe.com, is that Penoles hedged silver at low prices. As reported at lemetropolecafe.com, "We know the market is so tight even the world’s largest silver producer, Mexico’s Penolas, wasn’t thrilled about supplying 1 million ounces for a special project with ECU Silver, led by their extremely able CEO Michel Roy."
From 2003 annual statement, by Dec 31, 2003, Penoles hedged 1.5 million ounces of silver at $5.31/oz. That looks to be a bad bet, but easily coverable for Penoles. They bought an option to sell (put) 17 million ounces of silver at 4.94. Another bad bet. Totally wasted money, it appears to me. They also have an option to buy 8.5 million ounces (call) at $5.53. Not bad. Such hedging practices, win or lose, make it more difficult for investors to know and guess the current operational state of the company. Who knows whether Penoles will lock in more silver, and take away the upside potential profitability for shareholders, or even waste money on put options that will never be exercised.
Whether Penoles hedged an entire 2 years worth of production by Feb, 2004, I don't know, and remains to be seen. Penoles also engages in hedging dollars in the foreign exchane markets, further complicating matters.
77 million oz. silver refined by the metals division in 2003, and 1 mil oz. gold. They probably refine almost all the silver that comes out of Mexico. They produce about 48 mil oz. of silver from their mines 2003, and they have expansion plans.
I've heard this stock is tightly held, most is family owned.
Their oz. numbers are "proven & probable reserves", which is much more certain than most of the others which are mostly "inferred and indicated resources." They undoubtedly have "inferred and indicated resources" in addition to the "proven & probable reserves," I just could not find any info on that at the website or in the annual report. There is no need for a Mexican company to comply with Canadian law, 43-101. When CDE recently complied with 43-101, they raised their total numbers by about 30-50%?
Given the report in March, 2004, that Penoles has hedged silver for two years, I expect silver bullion to continue to outperform IPOAF.PK stock at these prices. CDE (COEUR D'ALENE) http://www.coeur.com email@example.com (208) 769-8155 or (800) 624-2824 214 mil shares outstanding (June 2004) not fully diluted @ $3.90/share $835 mil MC "Current cash, cash equivalents and short-term investments stand at approximately $252.7 million at January 31, 2004, giving effect to recent $180 million offering of 1.25% Senior Convertible Notes due 2024, net of offering costs." July 15th, 2004: Cour Presents Resources in Cdn 43-101 form: http://biz.yahoo.com/cnw/040715/id_coeur_d_alene_mine_1.html Total of proven & probable reserves: 175 mil oz. silver, 1.4 mil oz. gold. Total silver equiv: 189 mil oz. Total of measured, indicated, and inferred resources: 76 mil oz. silver, 1.4 mil oz. gold. Total silver equiv: 90 mil oz. (This increases the number from 189 mil to 279 mil oz. silver). Before, Cour was not reporting any resources, only reserves.) (Produced 14.2 mil oz. silver in latest fiscal year (early 2004) $835 mil MC / 279 mil oz = $2.99/oz. You get "approx" 2.29 ounces in the ground for 1 oz. silver's worth of stock.
Wheaton recommends rejecting the CDE buy out offer: Wheaton Does not Intend to Pursue the Coeur D'alene Mines Proposal: Recommends Shareholders Vote IAMGold Combination Monday May 31 http://biz.yahoo.com/bw/040531/315071_1.html Interestingly, as one reason, Wheaton says: CDE has a history of losses and negative operating cash flow.
For the full year 2003, the Company reported a net loss of $67.0 million, or $0.40 per share, compared to a net loss of $81.2 million, or $1.04 per share in 2002.
Why does CDE continue to mine and sell silver at a loss? Why has CDE borrowed $180 million to continue expanding this business plan? Why couldn't CDE have raised the money from issuing more shares? Why has CDE stock increased over seven times from about 30 million shares outstanding at the end of 1999 to 214 million shares outstanding by the first quarter 2004? How was CDE able to secure such favorable terms for a loan? "giving effect to recent $180 million offering of 1.25% Senior Convertible Notes due 2024, net of offering costs."" Who did CDE borrow money from? Who stants to gain if CDE continues to produce silver at a loss?
If CDE produced silver at a loss during the first quarter 2004, how much money will they make if silver hits $10/oz? Perhaps the break-even price for production is a constant $8.00/oz.? Regardless of their "cash cost" numbers. If so, and if CDE produces 15 million oz. of silver per year, then at $10/oz., CDE may make up to $30 million dollars, at the most, from their silver production, if none of their other costs like energy costs rise in price due to inflation. Mining uses a lot of energy, just so that you know, so I don't think it is likely that CDE will have profits even with higher silver prices in the $8-10 range due to inflation. Given that CDE has a market cap of up to $1000 million dollars, CDE just is not worth it at all, in my opinion. And neither would CDE stock be worth the price if they had a market cap of $300 million, in my opinion. I would rather own silver, as it moved in price from $6 to $10. And in the meantime, CDE may well move in price from $6.49/share down to $2.16/share (assuming no further dilution, and a reduction to a more reasonable $333 million market cap), and by then, with silver at $10, CDE may have a P/E ratio of 10, and a huge heavy debt load of $180 million dollars that may take up to 6 years of possible profits to pay off.
At $2.16/share, $10 silver, and a P/E of 10: $333 mil MC / 189 mil oz. = $1.76/oz. = You'd get about 5.68 oz. of silver for each silver oz. worth of stock.
There is one very important factor that CDE investors need to consider, especially if they are hoping that the stock will return to a historic price. CDE stock prices, in my opinion, are highly unlikely to return to historic prices. And why? Because of the recent massive dilution. At the end of 1999, there were 30 million shares out. Today, there are 214 million. You MUST take that information into account when looking at a long-term historical price chart. For example, the price in 1996 was $20/share, but there were less than 30 million shares? If so, then the market cap was $600 million ($20/share x 30 million shares). Today, the market cap already exceeds the previous historic price! $835 mil MC
I expect silver bullion to continue to outperform CDE stock at these prices.
SIL (APEX SILVER) http://www.apexsilver.com/ firstname.lastname@example.org (303) 839-5060 47.4 million shares outstanding (late May, 2004) (not fully diluted) (derived from share price & market cap, late May, 2004) @ $19.96/share $946 mil MC cash on hand: ~ $390 million March 2004 San Cristobal (Bolivia) (proven & probably reserves) 454 mil silver (forecast capital costs for construction to total approximately $435 million) (Produced zero silver in 2002) 7.8 billion pounds of zinc, and 2.9 billion pounds of lead $946 mil MC / 454 mil oz = $2.08/oz. You get "approx" 3.29 ounces in the ground for 1 oz. silver's worth of stock.
Additional comments: Apex's webpage on silver, "Commodity Fundamentals" says nothing about silver as money. Unbelievable and shameful! Unless you count this phrase, "As a precious metal, it has been a source of human adornment since the beginning of time." At least they recognize that silver is a precious metal, and at least they recognize it has been precious since the beginning of time. That's a start!
Bullishly, they note: "As a result of the silver inventory drawdown, by the end of 2002, the worldwide stockpile of refined silver has been reduced to levels sufficient to satisfy less than approximately six months of the existing demand."
"Apex has rights in some 100 mineral-exploration holdings at 34 properties in countries such as Bolivia, El Salvador, Mexico, and Peru."
The article's analyst notes that in 2-3 years, when/if production comes online, "At silver's current price of $6 an ounce, Apex could earn $2 to $3 a share, he figures. If silver runs up to $10, earnings could hit $6, he says."
I note that this means that at a P/E of 10, if production comes online, Apex may more than tripple in 3 years to $60/share, while silver nearly doubles. That's not much leverage, given the increased risks of mining and owning a public company, and given that management of Apex seems to not recognize that silver is money, and debt is aweful.
March 16th, Apex raises $144 million in a convertable debenture deal to help finance the development of San Cristobal. They now have 350/435, or 80.4% of the capital costs needed for construction. Raising the last bit should now be very easy to do. If, while raising money, they held their cash in the form of silver bullion, they would probably not need to raise any more cash at this point, since silver has moved up over 50%.
See my silver stock report #40 for reasons why Apex will not likely use their cash to buy silver bullion while they wait for higher silver prices.
Apex silver primarily has institutional investors.
Apex has a lot of zinc. That's an added bonus that is not factored in to my method of valuation.Zinc prices have been heading up soon, so that's another bonus. Plenty of zinc is especially good if zinc is moving up in price. Zinc hit a recent high of $.51/lb., from a low of about $.35/lb. For zinc prices, see http://www.metalprices.com
Apex is not mining now, but are waiting for higher silver prices. George Soros, Billionaire, owns a bit of this one, his group of funds owns over 14% I read recently. There are several other zinc / silver plays on this list that investors might also consider: Canadian Zinc, Expatriate, or Metalline (I own Metalline, but not SIL.)
I do not have an idea on whether or not SIL will out perform silver bullion or not. It's hard to say, because of that huge zinc bonus.
FSR.TO FSLVF.PK (FIRST SILVER) http://www.firstsilver.com/ email@example.com (604) 602-9973 or (888) 377-6676 38.6 mil shares fully diluted (March 2004) @ $2.07/share Cdn x .77 US/Cdn = $1.59 US $62 mil MC From the Company's main page: "As at December 31, 2001, First Silver's mineable reserves were 12 million ounces of silver and inferred resources totaled 30 million ounces of silver. The mine is developing a 1000 plus meter exploration drift to upgrade currently identified inferred resources to mineable ore reserves and to discover new reserves." (12 + 30 = 42 mil oz.) (The company appears to mine about 2 million ounces of silver per year, so perhaps by mid 2004, that would be 5 million ounces mined out from reserves and resources?) 42 - 5 = 37 mil oz. 12 + 30 = 42 mil oz. $62 mil MC / 37 mil oz. = $1.66/oz. You get "approx" 4.12 ounces in the ground for 1 oz. silver's worth of stock.
Additional comments: This is a high grade, producing miner. The high grades, about 300g/ton, are a plus. They are also actively exploring, another plus.
1st Q, 2004, FSR.TO earned $1.45 million Cdn?, or 4 cents/share, ending a string of losses for the 6 quarters prior. Seems as if their break even cost to mine is $6.00/oz silver. Produced 565,332 oz. silver for the quarter, and 1288 oz. gold.
First Silver is unhedged, and remain committed to remaining unhedged.
On PAAS's page on silver fundamentals, it says little about silver as money. Except maybe for the following phrases: "Many analysts forecast continuing weakness in the US dollar in 2004, which should bode well for higher silver prices." and " The outlook beyond 2004 is also promising for the silver market, due to continuing investment demand..."
Pan American of Canada buys Morococha silver mine in Peru for US$35 million This $35 million acquisition is a great deal for PAAS, and a minor help for PAAS shareholders. According to the press release above, the silver mine produced 3.5 million ounces of silver a year, at a cash cost of $3/oz., which is great! At $6.50/oz, that's $3.5 x 3.5 mil oz. = $12.25 million per year profit after cash costs! That gives the acquisition a P/E ratio for the mine's acquisiton cost of under 3! What a deal!
Unfortunately, PAAS shareholders are paying way above that when they buy the stock today. After this acquisition, PAAS should have a "2004 silver production forecast to 13 million ounces from 10.1 million ounces and will reduce forecast cash costs to below $ 3.50/oz, bringing anticipated total costs to less than $4/oz for the year." Now, at $6.50/oz, that's $2.5 x 13 mil oz. = $32.5 million per year profit, after cash costs, excluding management expenses? That gives a P/E ratio for PAAS of about $1000 / $32 = 31. Therefore, considering the two P/E ratios, 31 compared to under 3, PAAS stock is over ten times overvalued compared to other silver mining opportunities that exist in the market, such as the property they just purchased.
PAAS stilll refuses to recognize that silver is money, and they refuse to hold their money in the form of silver.
PAAS had a very meager profit of $1.3 million, second quarter, 2004. I certainly would not get excited about paying nearly a billion dollars in market cap to get an annual earnings of $5 million. That's a P/E ratio of 200!
What if your silver company decides to lock in silver prices at $8, and hedge years of production to "protect the shareholders and provide exposure to the high $8/oz. price," only to watch silver prices head past $25 and past $50/oz? Your stock could get wiped out in bankruptcy, and your investment could go to zero value! This is the danger of stocks! Your investment is subject to the whims of management!
WARNING: PAAS says at their website that they may hedge silver, in order to finance mine construction. http://panamericansilver.com/s/CorporateProfile.asp "Pan American is loath to give away the upside on any of its silver production, especially at current low metal prices, and will do so only to the minimum extent required as a condition of prudent mine financing."
In my opinion, hedging prudence depends entirely on the price level to which silver will rise as denominated in dollars. Since I believe the potential is for silver to cross over $2000 to $4000 per ounce (on the way to infinity) in a monetary collapse, I would never hedge silver and never lock in a dollar price for long term production. If PAAS will, it goes to show that they don't view silver as money, which is a counterproductive management philosophy for a shareholder who intends to invest in PAAS for the exposure to rising silver prices.
My opinion is that it is NEVER prudent to go into debt, or lock in silver prices to finance a mine. If PAAS cannot raise capital on the markets by issuing shares, then they should not be financing new mine construction. If the market will not support new mine construction, then the market does not need more silver. PAAS and CDE should learn to trust the free market process, and avoid debt.
GRS GAM.TO (GAMMON LAKE) http://www.gammonlake.com/ firstname.lastname@example.org (902) 468-0614 62 mil shares fully diluted (Feb 27th, 2004) @ $5.52/share $342 mil MC Total Ocampo Inferred: 1,124,000 oz. gold, 50,438,000 oz. silver Silver equiv = 11.24 mil oz. + 50.44 mil oz. = 62 mil oz. Total Ocampo Measured & Indicated 2,207,800 oz. gold, 108,438,000 oz. silver Silver equiv = 22 mil oz. + 108 mil oz. = 130 mil oz. Total Ocampo Measured & Indicated plus Inferred = 182 mil oz. Gammon owns 26.3% of Mexgold, MGR Since Mexgold owns 185 mil oz. of "target exploration potential", 26.3% of that is 48.6 mil oz. 182 + 49 = 231 mil oz. $342 mil MC / 231 mil oz.= $1.48/oz. You get "approx" 4.62 ounces in the ground for 1 oz. silver's worth of stock. **Note** most of Mexgold's oz. that are added in are an "exploration target" not yet "inferred resources".
Additional comments: At prices of a 64:1 silver:gold ratio at $425/oz gold and $6.60/oz silver, the resources are worth $1048 million of silver, and $1411 million worth of gold. Cash cost is $85/oz. Life of mine is 7 years.
MFN MFL.TO (MINEFINDERS) http://www.minefinders.com/ email@example.com 39.1 mil shares fully diluted 1 Q 2004 @ $7.18/share $281 mil MC Cash on hand, Fully Diluted: C$34 million "over 3.5 mil ounces of gold resource and 160 mil ounces of silver" --Dec. '03 silver conversion = 3.5 x 10 = 35 mil + 160 mil oz. silver = 195 mil oz. silver At 70:1 ratio, 3.5 x 70 = 245 "silver equiv" of gold, and 160 mil of silver = 405. 245/405 = 61% of the mineral value is in the gold, 39% silver. At 10:1 ratio, 35/195 = 18% of the mineral value is in the gold, 82% silver. "In addition to the resources already drilled, Minefinders controls a strong portfolio of properties in Nevada, Arizona, and Mexico which have the potential to host new multi-million ounce discoveries over the next few years." $281 mil MC / 195 mil oz. = $1.44/oz. You get "approx" 4.76 ounces in the ground for 1 oz. silver.
Additional Comments: At 70:1 silver to gold ratio, over half of MFN is in gold, so consider this a significant gold bonus. Minefinders reports increased Measured and Indicated Resource at Dolores August 9, 2004 (The increase was by 10%, and I don't see how the numbers relate to my previous numbers, which were higher, and may have included a total that was based on more properties?)
Clifton has a complex JV agreement with Dumont Nickel. In sum, here is what Keith Moeller VP, Clifton Mining Company wrote to me: "If Dumont produces a positive feasibility study on an individual property piece, then they gain a 50% interest in that piece alone, not in the rest of the property. If they spend more than 5 million dollars (US) on any one piece and they produce a positive feasibility study on that piece, then they will gain a 60% interest in that one piece of property, not in the rest. If they stop at any time or fail to produce a positive feasibility, then they will gain no interest in any of our property. Right now we have around 7 different pieces of the property that have "Stand Alone" mine potential. If Dumont stakes or purchases any property within five miles of the joint venture property, then we automatically receive a 50% interest in that property."
My problem is how to quantify that. First, there is the range of potential silver resources. Second, there is the range of potential ownership, which is highly variable, and not subject to the entire property, nor necessarily subject to spending by Dumont, but subject mostly to Dumont doing a positive feasibility study on each of many properties . At the extreme ranges, the values are: 40% to 100% of 105 = 42 - 105 million oz. 40% to 100% of 1000 = 400 - 1000 mil oz. "exploration potential" $51 mil MC / 42 mil oz. = $1.21/oz. $51 mil MC / 1000 mil oz. = $.051/oz. You get "approx" 5.66 ounces in the ground for 1 oz. silver. Exploration Potential: 134
Additional comments: Goldseek.com is hosting a "Meet the CEO" session with Dr. Friedman ofClifton. If readers would like to send him some questions (open until Aug. 23), see:http://www.goldreview.com/MeetCEO/ask.php
Note the "exploration potential" is very large, but it also assumes that their JV partner, Dumont, does not acquire any interest in the property at all.
Perhaps an interesting and novel way to determine percentage ownership of the projects would be to look at the relative market caps for both Clifton, and Dumont, and then assume that the market has it "about right", and then use thier relative values to determine a possible percentage ownership of each. And then, simply decide to own both, keeping your percentage ownership of each company, about the same. For example, if the MC of Clifton is $43 mil, and Dumont is about $10 mil, so own about 4.3 times as much Clifton as Dumont.
JV agreements were primarily entered into during a time when it was difficult to raise money through share offerings, as a way to advance the projects. Unfortunately, JV agreements also make it difficult for investors to value a company! Several companies at the NY Gold show in June were just completing buyout agreements (or working on doing so) with their JV partners.
For more info on what's going on with Clifton, see http://www.dumontnickel.com , JV partner. One man suggested buying both Clifton and Dumont to ease the difficulty in trying to figure out their JV agreement.
Clifton has 28% ownership of a biotech firm that makes a colloidal silver. The biotech firm has a patent on a "super" colloidal silver solution made with 10,000 volts that adds oxygen that gives it more powerful antibacterial properties, and is safer since it uses less silver, which would prevent "blue skin" argyria. Normal colloidal silver that you can make at home with 30 volts works to kill bacteria by disrupting the oxygen metabolism of the cell wall, killing bacteria with oxygen. The market for safe antibiotics is in the multi Billions of dollars. Clifton Mining Company - ASAP Product to Be Produced in Brazil The minimum royalty payable to ABL will be $57,000 per month. 28% for Clifton is $191,520/year.
ABL signs a contract with GNC. (April) Clifton's biofirm's colloidal silver product will be on the shelves of this mass market health food and fitness stores, GNC. Congratulations to Clifton!
* TM.V TUMIF.OB (TUMI RESOURCES) (TUY Frankfurt Exchange) (I own shares) http://www.tumiresources.com firstname.lastname@example.org Nick Nicolaas IR (604) 657 4058 24 mil shares fully diluted (Mar. 1, 2004) @ $1.35/share Cdn x .77 US/Cdn = $1.04 US $25 mil MC 20 mil oz resource up to 50 million oz. silver potential but needs to be explored and drilled. 500,000 gold resource x 10 = 5 mil oz. silver equiv. Debt free, 2 projects in Mexico. Raised $2.7 million Nov. 14, 2003 $25 mil MC / 25 mil oz. = $1.00/oz. ***I'm using this number*** $25 mil MC / 50 mil oz. = $.50/oz. (exploration potential) You get "approx" 6.86 ounces in the ground for 1 oz. silver's worth of stock. Exploration Potential: 14 (likely plus more after bonanza silver discovery late November, 2003.)
Tumi soared in late November, 2003, after the company announced a bonanza grade silver discovery after drilling. Final drilling is winding up, and a resource calculation from all the recent drilling is expected soon, sometime after final drilling results are announced.
Tumi is focused on becoming a "premiere junior silver explorer." It's good to see the focus is in the right metal. Doing active drilling to prove up their projects and increase "resources". Nick Nicolaas really understands the silver story, beliving silver has much greater appreciation potential than gold.
I own shares of TM.V.
WTZ WTC.TO (WESTERN SILVER) (formerly Western Copper) http://www.westernsilvercorp.com email@example.com Jay Oness Toll Free: 1-888-456-1112 43.3 mil shares fully diluted (July 2004) @ $6.95/share $301 mil MC (not actively mining) $14 million Cdn cash in the till (2 mil + 12 mil financing) no debt From the "SNC Lavalin Resource Calculation" March, 2003. Indicated 158.8 mil oz. silver Inferred 54.6 mil oz. silver Total 213.4 oz. silver. Total 1.94 oz. gold x 10 (at 10:1) = 19.4 silver equiv. The capital cost to get the mine going is estimated to be US $148 million Western Silver Completes Pre-Feasibility Study on Chile Colorado Zone at Penasquito New info: 267 mil oz. silver at a grade of just over 1 oz. per tonne. (an increase of 54 mil oz. over previous est.) Brechia zone will likely double the numbers: probably in Jan will have 500 mil oz. silver, 5 mil oz gold. Exploration potential: 500 mil oz. silver, 5 mil oz. gold, from http://www.mips1.net/mgn03.nsf/UNID/SBAY-5SUBN6 Plus, they have two other zones that could each duplicate the success of each of the other two. So up to a Billion... oz. of silver as "exploration potential"! Feasibility: 2006-7 production timeline. $301 mil MC / 287 oz. = $1.05/oz. $301 mil MC / 1000 oz. = $.30/oz. --exploration potential You get "approx" 6.53 ounces in the ground for 1 oz. silver's worth of stock. Exploration Potential = 23
Additional comments: WTZ's silver page: "Why Silver?" While acknowleding the silver fundamentals as produced by the Silver Institue, and shrinking supplies, it says nothing about silver as money. WTZ acknowledges their role is to make sure their shareholders are "well positioned to take advantage of any shortage of supply or rise in the price of silver."
Western Silver was formerly Western Copper... Copper now at $1.35/lb!
Note the capital cost to get the mining started: $148 million dollars. WTZ also has the following other metal resources: 3.73 billion pounds of zinc x .50/lb = $1865 million 673 million pounds of copper x $1.30/lb = $874 million 1.3 billion pounds of lead x .40/lb = $520 million
SSRI SSO.V (SILVER STANDARD RESOURCES) http://www.silver-standard.com/ firstname.lastname@example.org (604) 689-3856 or (888) 338-0046 51.8 mil shares fullly diluted (August 2004) --from the company website. See "quick report", then "Company Fact Sheet" at the top. (I was using an informal 57 mil number... no longer.) @ $14.69/share $761 mil MC debt free, cash: $Cdn 36 mil plus 2 million ounces of silver, plus securities. As of May 12: The company has budgeted $8.2 million in 2004 for feasibility and scoping studies and exploration of its 15 projects. With cash of $61 million, and marketable securities of approximately $10 million at March 31, the company decided to invest approximately 20% of its cash and securities in physical silver following the decline in silver prices in April and May. Silver Standard now owns over 1.95 million ounces of silver. This silver is held on an allocated and segregated basis and, consequently, is not available to be loaned. not mining or producing; 23 silver properties measured and indicated resources totaling 403.6 million ounces of silver plus inferred resources totaling 446.4 million ounces of silver = 850 mil oz. 2.2 mil oz. gold. Silver equiv = 22 mil oz. silver. (22 + 850 = 872 mil oz.) $761 mil MC / 872 mil oz. = $.87/oz. You get "approx" 7.85 ounces in the ground for 1 oz. silver's worth of stock.
Additional comments: Congradulations to SSRI for converting some of their cash, 20%, to silver bullion! I wish it was more, but it is certainly a great start! SSRI decided to hold such a large percentage of their cash in the form of bullion, first, of all silver miners!
SSRI now has more silver resources than PAAS. I'd expect SSRI's market cap to soon exceed PAAS, especially given PAAS management's lack of understanding that silver is money, and can be used as money.
SSRI really is the "silver standard". SSRI has the largest market cap this far down the list, which makes it a more attractive target for people with larger amounts of money to invest. SSRI continues to add resources through drilling and acquisition. This company seems to really understand the silver story, and helped to educate me as an investor.
I attended a two hour SSRI presentation after the Gold show in SF in late November, 2003. For the most part, their properties are very well drilled, and they have a fairly solid idea on how much silver oz. in the ground they have. They started their plan to acquire silver properties and become a "silver company" in about 1993, which explains why they have such a large market cap, and so many good properties with so many ounces of silver.
Some investors like SSRI because of the diversification --SSRI owns many silver properties. You can get a similar kind of diversification by owning stock in many silver companies.
CZN.TO CZICF.PK (CANADIAN ZINC) http://www.canadianzinc.com/ email@example.com 1-866-688-2001 78.5 mil shares fully diluted (August, 2004) --(In report #45, I had the right number, and I was right for months, as I was keeping track since before there were 30 million shares out. However, last week, I finally gave in and published the company's number, which was, as it turned out, incorrect. I guess the company was behind in their own calculations, and I had the right number all along.) @ $.77/share Cdn x .77 US/Cdn = $.59 US $47 mil MC $14.6 million cash, Cdn, no debt. not mining ($20 mil needed to finish & start the mine) ($100 mil worth of mining infrastructure in place!) ~70 mil oz. (IN ZONE 3 only!! of 12 zones! This company seems to be greatly under-reporting their silver reserves. Their 18 year mine plan consists of zone 3 only, but there are 12 mineralized zones on the property.) Really, perhaps well over 100 mil oz. silver. $47 mil MC / 70 mil oz. = $.66/oz. You get "approx" 10.30 ounces in the ground for 1 oz. silver's worth of stock.
CZN likely has much more silver in the ground, and has good profit potential.
To get the mine up and running, they might be able to pay back debt financing within 2 years, but I would hope they would avoid debt, and raise the capital in additional financings.
I note several very, very positive things about this company.
1. This was the mining operation set up by the Hunt brothers, the major silver investors in the silver spike to $50/oz. in 1980 who were bankrupted by their own debts and margin calls as a result of the COMEX rule changes and silver short sale manipulation. The Hunts spent $50 million building infrastructure to build the mine. They were 90% complete when bankruptcy hit. The value of those buildings is now perhaps over $100 million, and the mine only needs about $20 million (CAN) ($15 mil US) to get the mine up and running. That's much cheaper than other cost estimates of other operations. 2. The 70 million oz. of silver estimate is for zone 3 only. But there are 12 zones on the property. The zone 3 estimate is for a 10 year mine plan that involves mining zone 3 at current metals prices. 3. High Grade ores: 12% zinc/ton; = 240 lbs. zinc/ton x 50 cents/lb. = $120/ton for the zinc. 10.1% lead/ton = 202 lbs. lead/ton x 40 cents/lb. = $80/ton for the lead. 6 oz. silver/ton x $6.95/oz. = $42/ton for the silver. 0.4% copper/ton = 8 lbs. copper/ton x 1.30 cents/lb. = $10/ton for the copper. Total: $249/ton! Prices accurate as of Mid Feb., 2004 4. My method of valuation: I'm really counting only the silver, not the base metals in my "oz in the ground" valuation. So consider a significant "zinc bonus", and "lead bonus". 5. Zinc and base metals prices headed up? Currently, 45 cents/lb. for zinc! Check http://www.metalprices.com/ for updates.
SHSH.PK (SHOSHONE SILVER) http://www.shoshone-mining.com Carol Stephan, director, 208-666-4070 18 million outstanding shares @ $.45 US $8.1 mil MC Lakeview Mine and Mill: 24,190 tons of mineralized material delineated at Lakeview, grading an average of 11.8 oz/t silver. = 285,000 oz. silver. But is a narrow (high grade) vein mine, like Cour d'Alene and Hecla, with few reserves. Conjecture (in Lakeview district): 336,000 tons at a grade of 11 ounces per ton of silver = 3.7 mil oz. silver. "Terms of the 25-year lease [of the conjecture] include payment of a $3000 per year advance royalty, issuance of one million shares of Shoshone common stock to Chester, and a sliding scale net smelter return based on the spot price of silver." At .$60/share, that's $.6 mil MC more for the lease. blende project: 21.4 million tons grading 1.63 ounces per ton (oz/t) silver. (low grade) 34.8 mil oz. silver (not 43101 compliant, plus 5.8% lead-zinc ) Shoshone must issue 1 million shares, and spend $5 million on exploration by December 31, 2008 to complete its 60 percent earn-in on the blende project. How to count that? As an investor, I hate evaluating these kinds of complex deals. 60% of 34.8 mil oz. silver is 20.9 mil oz. that will cost an additional $5 million, plus a million shares. At $.60/share, that's $5.6 million for 20.9 mil oz. resource. That's $5.6 million / 20.9 mil oz. = $.27/oz. acquisition cost to Shoshone for blende, which they don't own yet, just an option. I don't like options, which is why I buy silver bullion, and mining companies in the first place, as they are "unexpiring call options" if they own their properties. Total: 4 mil oz. silver, plus an option on 20.9 mil oz. silver at blende. $8.1 mil MC (plus $6.2 mil they need to raise to maintain leases) / 4 mil oz, plus 20.9 mil oz. (24.9 mil oz.) = $.57/oz. You may get options and leases that may give "approx" 11.9 ounces in the ground for 1 oz. silver's worth of stock.
ORM.V OREXF.PK (OREMEX RESOURCES) http://www.oremex.com/s/Home.asp firstname.lastname@example.org 28.8 mil shares fully diluted (End of May, 2004) after, and including financing? @ $.72/share Cdn x .77 US/Cdn = $.55 US $16 mil MC Have $5 million cash in the bank as of Dec. 2003. holds the right to acquire a 100% interest in six mineral properties in Mexico. Oremex will focus on the exploration and development of the Tejamen Silver Property and the San Lucas Silver Property. They are hoping to explore for up to 100 mil oz. silver by drilling over the next year. --Experienced team of geologists and mannagement that have put other properties into production: Anthony R. Harvey, Chariman, has put 14 properties into production in his 40 year career. http://www.oremex.com/s/TejamenSilver.asp?ReportID=68653 for an inferred resource of 8.4 million metric tons at a grade of 89 g/t Silver (2.86 opt) and 0.2g/t Gold (0.006 opt). 2.86 x 8.4 = 24 mil oz. silver at Tejamen (one of six silver properties) $16 mil MC / 24 mil oz. = $.67/oz. $16 mil MC / 100 mil oz. = $.16/oz. --exploration potential You get "approx" 10.22 ounces in the ground for 1 oz. silver's worth of stock. Exploration Potential: 43
Additional comments: Oremex Closes $2.6 Million Private Placement FinancingMay 28 "The Company issued a total of 2,890,023 units at $0.90 and 1,445,012 warrants exercisable at $1.10 for a period of 12 months from closing. In addition, 269,940 Agents' Warrants were issued entitling the holder to purchase one unit at $0.90 for a period of 12 months."
SRLM.PK (STERLING MINING) http://www.sterlingmining.com/ RDemotte@aol.com Ray DeMotte 208 666 4070 12.2 mil shares outstanding (May 31, 2004) 16.6 mil shares fully diluted (May 2004) --(I use fully diluted whenever possible in my market cap calculations) @ $7.65/share $127 mil MC ~185 mil oz. reserves + resource, Sunshine alone Quote from: http://www.sterlingmining.com/jun112003.html "The prior operator last estimated the mine reserves at 26.75 million ounces of silver, 10.36 million pounds of copper and 7.05 million pounds of lead (or approximately 28.85 million ounces of silver-equivalent), as well as an additional resource of 159.66 million ounces of silver. " Other properties: Baroness 15 mil -- tailing project, no further exploration potential. Tesorito 17 mil -- + exploration potential sa 14 mil -- + exploration potential Total: 231 mil oz. silver $127 mil MC / 231 mil oz. = $.55/oz. $127 mil MC / 550 mil oz. = $.23/oz. (exploration potential) You get "approx" 12.4 ounces in the ground for 1 oz. silver's worth of stock. (Exploration potential is 30.)
Additional comments: I wrote an article on SRLM in late Dec. See: Sterling Mining (But I no longer own shares.)
Ray DeMotte really, really understands the silver story, and has been aggressively acquiring silver properties. Sterling continues to consolidate its land position around the Sunshine mine.
Sterling Mining acquired the Sunshine mine. Sunshine had "more than 360 million ounces of production over the past century" and was one of the big three: Hecla, Couer, & Sunshine. Sunshine went bankrupt. Sterling got the property a few months ago cheap, because they were quick & willing to pay cash. Other buyers wanted to do a full study before making an offer. This company's share price went ballistic as a result. But the company is stilll way undervalued. Just do the math, people. There were a few great articles written lately for SRLM. See the company web site, above. The best factors, I feel, are as follows: 1. The Sunshine mine is an existing mine that was mining at a profit. The company went bankrupt, not the mine. So there will be no great capital costs for start up, only minimal costs. 2. The Sunshine sits on 1/2 sq. mile, and was never fully explored. Sterling Mining owns 10 square miles of property surrounding the Sunshine, right in the heart of silver country, the location of CDE and HL, the other two big companies at the top of this list. 3. The management of Sunshine understands the silver story. They are on a mission to acquire distressed silver properties at today's cheap prices. See also: December 14, 2003: "In light of the continued low silver price, Sterling has this year begun holding back into inventory a portion of this year's silver coins minted."
FAN.TO FRLLF.PK (FARALLON RESOURCES) http://www.farallonresources.com/fan/Home.asp email@example.com (604) 684-6365 Erick Bertsch 78.3 mil shares fully diluted (Aug, 2004) @ $.80/share Cdn x .77 US/Cdn = $.62 US $48 mil MC Exploration and development in Mexico. Managed by Hunter-Dickinson http://www.hdgold.com On 4 sulphide deposits out of 16, 29 mil tonnes of ore grading 89 grams silver/t and 1.57 g gold/t. Conversion: 89 grams x .03215 troy oz./gram = 2.86 oz./t silver RE: those 29 mil tons, they "anticipate increasing resources to 50 mil tonne range..." 2.86 oz./t silver x 29 mil tons = 83 mil oz. silver 1.5 mil oz. gold x 10 = 15 mil oz "silver equiv". Total: 98 mil oz. silver equiv. (Exploration potential = x 1.7 = 167) (Minus: The recoveries on low grade ores such as this are typically not 100%, but may be more like 50-85%, but it also depends on which metal in the polymetalic deposit that they most focus on extracting, and also depends on advances in technology.) $48 mil MC /98mil oz. silver equiv. = $.49/oz. $48 mil MC / 167 mil oz. silver equiv. = $.29/oz. --exploration potential You get "approx" 13.9 ounces in the ground for 1 oz. silver's worth of stock. Exploration potential = 24
Oddly, in their mineral report, they use US$0.58/lb for Zn, but zinc is $.43/lb. It is likely that the report was done a few years ago, when zinc prices were significantly higher, and when gold was lower at $325/oz. Given the cut off range used, they may have up to 45 million tonnes, which is more than the 29 million tonnes used for my calculations above.
Nothing done or drilled on the property since 1999. Why not? Because of low zinc prices: 46% of the price of the metals was in the zinc before prices crashed... The largest componant in late 2003 was gold, which was surprising to Eric, the IR guy I spoke with. About 1/3 is in silver now.
At today's low metals prices: 2% x 2000 lb = 40 lbs zinc x $.42/lb = $16.8 for the zinc (.37 to .50 lb zinc.) 3.14 oz. x $5.15 = $16 for the silver. .055421 oz. x $385/oz. = $21 for the gold (Assuming 100% metals recovery--which is not likely to be the case. It may range from 60% to a higher percentage, depending on extraction methods used and the particular mineral targeted, which constantly change with technology advancements, and price changes in the metals. By the time a mine like this gets running, perhaps in 5 years or so, things may change to allow even greater metal recovery.)
The stock once had a market cap of $450 million, Canadian.
Speaking with FAN.TO guys, they think reserves of ore could be 50 mil tonnes OR MORE, but that they really don't know, and want to issue conservative estimates.
CHD.V CHDSF.PK (CHARIOT RESOURCES) http://www.chariotresources.com/ firstname.lastname@example.org 45 mil shares fully diluted October 2003 @ $.34/share Cdn x .77 US/Cdn = $.26 US $12 mil MC Cello Ccasa (1 project of 4) Resource Estimate - August 2002 31.4 mil oz. silver, 134,000 oz. gold. (x 10 = 1.3) 32.7 mil oz. (Stilll much exploration work to do.) $12 mil MC / 32.7 mil oz. = $.36/oz. You get "approx" 19.0 ounces in the ground for 1 oz. silver's worth of stock. HDA.V (HUSIF.PK) (HULDRA SILVER) no website Phone: Magnus 1 (604) 261-6040 6.924 mil shares fully diluted (end '03?) @ $.55/share Cdn x .77 US/Cdn = US $.42 $3 mil MC no debt HDA's proven and probable reserves stand at 161,000 tons of ore grading an average 25.6 ounces per ton silver, and 10 percent combined lead/zinc -- 4.12 mil oz silver, not including the zinc & lead. According to Magnus, the indicated and inferred reserves total about 180,000 tons at about the same grading -- in other words, a further 4 million ounces of silver. ~8 mil oz. silver $3 mil MC / 8 mil oz. silver = $.36/oz. You get "approx" 18.8 ounces in the ground for 1 oz. silver's worth of stock.
Additional comments: There is a significant lead/zinc bonus. "The property could be put into production at a capital cost of Cdn $3.5 million -- with payback of capital (when equity financed) within two years."
ADB.V ADBRF.PK (ADMIRAL BAY RESOURCES) http://www.admiralbay.com/ email@example.com 604 628 5642 -- Curt Huber-- Business Development 33.3 mil shares fully dilluted. (March, 2004) @ $1.01/share Cdn x .77 US/Cdn = $.78 US $26 mil MC They have $6 million cash. --owns an option to earn 70% interest inn "Miera San Jorge's Monte del Favor property in Mexico" "An historical resource estimate based on underground sampling at Monte Del Favor is reported at 17 million tonnes grading 0.85 g/t gold and 224 g/t silver for a contained 123 million ounces of silver and 460,000 ounces of gold." "While this resource estimate is not fully 43-101 compliant, the Company considers that it provides a conceptual indication of the potential of the property." 460,000 x 10 = 4.6 mil "silver equiv". 127.6 mil oz. x 70% interest = 89.3 mil oz. $26 mil MC / 89.3 mil oz. = $.29/oz. You get "approx" 23.6 ounces in the ground for 1 oz. silver's worth of stock.
Additional comments: Prior grades hit 2-5 kilos silver/ ton. (2000-5000g/ton. 70-176 oz. ton) Very high grades. The project was never properly drilled with modern methods.
Admiral Bay acquired this option to own a 70% interest in this silver property in June, 2003, and the acquisition did not impact their stock price at that time at all. Previously, they were a gas company, and they stilll have this other gas project, which may be more than half the intrinsic value of the company according to Curt Huber, who understands the silver story as expressed by Ted Butler and David Morgan.
My valuation method, obviously, does not give any value for their gas projects, which therefore needs to be factored in as a significant "bonus". Company goals for gas production are 2.5 million cubic feet/day by mid 2004, which at $5 would be $12,500/day gross, and target is 7.5 million cubic feet/day by the end of the year, again, at $5 would be $35,000/day gross, or $12.8 mil/year gross. After speaking with Curt Huber at the NY Gold show in early June, 2004, Admiral Bay soon expects to be cash flow positive soon from the gas projects.
They are actively digging, drilling, and releasing results in press releases.
IMR.V IMXPF.OB (IMA EXPLORATION) http://www.imaexploration.com/s/Home.asp firstname.lastname@example.org 49,059,825 mil shares fully diluted (May 27, 2004) @ $2.50/share Cdn x .77 US/Cdn = $1.92 U.S $94 mil MC Exploring in Argentina. $4.5 million cash Snowden Reports Over 200 Million Ounces of Contained Silver at IMA's Galena Hill -- May 25th Indicated + Inferred Resource = 243 mil oz. "This resource includes only the Galena Hill deposit and portions of the adjacent Connector zone, and does not include known and interpreted mineralization at Navidad Hill, Barite Hill, Calcite Hill, or along the Esperanza Trend." My comments: This resource might be perhaps 1/4 or 1/5th of the overall potential resources, based on estimating by looking at size of the land area being explored, compared to the size of the land area covered by the resource calculation. The full exploration potential might be 4 times as big. $94 mil MC / 243 mil oz. = $.39/oz You get "approx" 17.7 ounces in the ground for 1 oz. silver's worth of stock. (Exploration potential might be (times 4) or 71.
Additional comments: Positive drilling results are coming in, and drilling continues.
IMA has several joint venture partners in the area in Argentina near Navidad. See Tinka, Cloudbreak, Consolidated Pacific Bay. Other companies are in the near area such as Pategonia Gold, Pacific Rim, and Silver Standard. And, of course Aqualine who, based on their lawsuit, seems as if they think they own the entire area for 50 miles around all their mining claims. That's a total of 7 other companies in the area. And of course, Cardero also has significant exploration properties in Argentina.
IMA had many other silver properties that they just spun off into a new company, Golden Arrow. For every 10 shares of IMA existing shareholders got 1 share of Golden Arrow.
RDV has a "gold bonus". At $409/ gold, and $6.50/oz. silver, it's about $300 million worth of gold, and $200 million worth of silver, or about 60% of the value is in the gold. Since my method really undercounts the gold, this means there is a significant "gold bonus" here.
GGC.V GGCRF.PK (GENCO RESOURCES) http://www.gencoresources.com/ email@example.com IR: Rob Blankstein: 604-682-2205, or 20+ mil shares fully diluted (April, 2004) @ $.89/share Cdn x .77 US/Cdn = $.69 $14 mil MC --Producer in Mexico. http://www.gencoresources.com/reserves.html Inferred resources: 484g/t silver x .03215 = (15.5 oz/t) x 2.3 mil t = 35.8 mil oz. silver 2.00g/t gold x .03215 = 148,000 oz. gold x 10 = 1.5 mil oz. "silver equiv" 385 x .03215 = ... x 95k = 1.2 mil oz silver 40+ mil oz. silver equiv. resources 2002 production, 500,000 oz. silver, 9000 oz. gold $14 mil MC / 40 mil oz. silver = $.34/oz. You get "approx" 20.0 ounces in the ground for 1 oz. silver's worth of stock.
Additional Comments: As of April, 2004, Genco is producing 35,000 oz/month of silver, earning $100,000 Cdn/month, and expects to earn $1,000,000 Cdn/month by year's end by doubling both the tonnage and the grade. Genco is also aggressivly planning on making property acquisitions.
* SVL.V STVZF.PK (SILVERCREST MINES) (I own shares) http://www.silvercrestmines.com/ firstname.lastname@example.org (604) 691-1730 25.9 mil shares fully diluted March, 2004 @ $.89/share Cdn x .77 US/Cdn = $.69 US $18 mil MC $3 mil cash in the till. Honduras - Arena Blanca: high grade exploration project, 7,600 g/t silver, no samples, adit inaccessable. Honduras - Opoteca Deposit: Indicated and Inferred silver: 12.8 mil oz. silver Honduras - La Pochota: a vein, 1-4 meters in width, of between 300 to 500 g/t silver, needs drilling Honduras - El OCote Deposit: Indicated and Inferred silver: 19.8 mil oz. silver Ultimate exploration potential may be another 40 to 100 mil oz? See the Rosita Extension, grades 100 to 200g/t silver, news release dated Sept., 2003, "SilverCrest Makes Significant Discovery at El Ocote Silver Project" (in Honduras) El Salvador - El Zapote Project: Indicated and Inferred silver: 14.3 mil oz. silver Guatemala - Concepcion Concession (pending): includes several past producing silver mines. documented results of greater than 13,714 g/t silver -- a historical resource of 1.9 million tonnes grading 86 g/t (2.5 opt) silver (4.75 mil oz., non- 43-101 compliant) Mexico - Silver Angel Project-- a 100% interest in 10,300 hectares located in the northern Sierra Madre Range... with structural features that host seven past producing, high grade silver-gold mines. --currently exploring this project. Totals: 12.8 + 19.8 + 14.3 + 4.75 = 51.65 mil oz. $18 mil MC / 52 = $.34/oz. $18 mil MC / 100 = $.18/oz. You get "approx" 20 ounces in the ground for 1 oz. silver's worth of stock. (Exploration potential = 38+ oz.)
Additional comments: The two projects of current focus are in Mexico and El Salvador. The El Salvador project is moving "full speed ahead" with a feasibility study expected by November. Depending on the study, hoping for produciton perhaps by Jan or July, 2006.
The company's target goal remains to acquire up to 100 to 150 million ounces of silver resources.
I own shares of SVL.V
ABI.V ABMBF.PK (Abcourt Mines Inc.) http://www.abcourt.com/ email@example.com Jeff Tremblay (IR) (418) 575-1169 cell phone 28.3 mil shares fully diluted (June 21, 2004) @ $.23 share Cdn x .77 US/Cdn = $.18 $5 mil MC no debt., North of Montreal., 8 mil shares family owned. proven reserves... not ready to be opened, re-opened perhaps in mid 2005? --Past producer, so there's existing infrastructure. --Resource: 18.1M oz silver, 120,000 oz.. gold, 303,000 tons zinc, 2,308 tons copper $273 million worth of zinc at .45/lb, $108 million worth of silver at $6/oz, $45.6 mil worth of gold at $380 $5 mil MC / 19 mil oz. = $.26/oz. You get "approx" 26.0 ounces in the ground for 1 oz. silver's worth of stock.
Additional comments: looking to raise $5 mil to reopen the gold mine. looking to raise $5 mil to reopen the silver mine. (drilling the silver mine planned for summer, 2004) looking to raise $5 mil for the zinc project.
* MGN (MINES MGMT) (I own shares) http://www.minesmanagement.com/ firstname.lastname@example.org (509) 838 6050 Doug Dobbs 12.4 mil shares fully diluted (April 2004) @ $5.82/share $72 mil MC 261 mil oz. silver resources. Previous drilling spent over $100 million drilling the property. $72 mil MC / 261 mil = $.28/oz. You get "approx" 24.8 ounces in the ground for 1 oz. silver's worth of stock.
"The revised mine plan, as currently conceived, envisions an operating capacity of 12,500 tons per day, yielding average annual production of approximately 7.8 million ounces of silver and 32,000 tons of copper, at a capital cost of approximately $236 million." "The cash operating costs of the project remain attractive at approximately $12.14 per ton, taking into account inflation offset by increases in productivity from improved mining methodology and technology."
As copper moves up 5 cents/lb., it adds $100 million to the value of the deposit. As silver moves up $.50/oz., it adds $130 million to the value of the deposit.
Mines Management owned 10% of the rights to their property in Montana. The other 90% owner, Noranda, simply gave up on the property and walked away from their mining claim due to "perpetually" low silver prices and political concerns. That explains the rocketing share price. So, the MNMM group got 90% of the rest of the property FOR FREE!--the value of which, and the nature of this transaction has just barely begun to be understood by the market, given the low relative price.
Their property also has about 60% of the value (at current prices) in copper (copper recently at $1.24/lb.), 2 Billion pounds of copper, and 261 mil oz. of silver. Doing the math: 261 mil oz. silver x $5.70/oz. = $1.487 Billion. 2 Billion lbs copper x $1.24/lb.. = $2.5 Billion. Total value of mineralization before costs to extract, $4.0 billion. It was recently a high of: $4.8 Billion. This number increased from around $3 Billion just a few months ago! These numbers do not suggest a potential market cap value of the company. The costs to extract that mineralization will be substantial, along the way. However, if they are cost effective at today's prices, and if metals prices double, then that is substantial profit, and creates the leverage investors seek.
They do not have an active working mine--which is a minus. They will need to raise capital to get a mine going: $236 million current estimate.
Regarding environmental concerns: Noranda had a fully approved Environmental Impact Statement (EIS) that led to successful project permitting, so environmental concerns were not a factor in Noranda's departure of the project in 2002.
PLE.V (PLEXMAR RESOURCES INC) http://www.paradox-pr.ca/ http://www.plexmar.com/ (in construction) email@example.com Guy Bedard, President, Phone: (418) 658-6776 Fax: (418) 658-8605 "Plexmar Resources recently took the opportunity of acquiring 2 Peruvian Gold/Silver properties. Our web site is currently being updated to reflect those new projects." 62 mil shares fully diluted (March 2004) @ $.15/share Cdn x .77 US/Cdn = $.115 US $7 mil MC --just acquired 2 silver mines in Peru Total: 1.09 mil gold oz., 28.4 mil oz. silver Total silver equiv: 38.4 mil oz. $7 mil MC / 38.4 mil oz. = $.186/oz. You get "approx" 36.7 ounces in the ground for 1 oz. silver's worth of stock. EXR.V EXPTF.PK (EXPATRIATE RECS) http://www.expatriateresources.com/ firstname.lastname@example.org 1-877-682-5474 Dr. Harlan D. Meade, President and CEO 122.9 mil shares fully diluted (July 23, 2004) (listed on the front page of the web site!) @ $.26/share Cdn x .77 US/Cdn = $.20 $24.6 mil MC $1.2 mil CAN capital in the tilll no debt. Mostly a base metals company: Zinc. Also has some silver & gold. 6 properties. Most of the value is concentrated in the 100% owned Wolverine Project. Total mineralization across 6 properties: 97.2 mil oz. silver, 565,000 oz. gold, = 103 mil oz. "silver equiv." 3.8 million pounds zinc, also some copper and lead. $24.6 mil MC / 103 mil oz. silver = $.239 You get "approx" 28.7 ounces in the ground for 1 oz. silver's worth of stock.
Additional comments: Significant zinc bonus, about 3 times the silver value. Smelter credits are estimated at about 60% zinc, 25% silver, 10% gold and copper, and the rest, other minerals, but that assumes old low prices for silver, about $5-6?/oz. My method of valuation puts a value on the silver only, not the rest, so this is a significantly better value than my number shows.
Call Dr. Harlan D. Meade, President and CEO 1-877-682-5474, and ask him to send you an information packet on EXR.V. It contains a good report on why he is bullish on both silver and zinc.
* ASM.V ASGMF.PK (AVINO SILV GOLD) (I own shares.) http://www.avino.com/ email@example.com 604 682-3701 -- David Wolfin 10.5 mil shares outstanding. / 12.5 mil shares fully diluted (June 2004) 16.5 mil shares fully diluted (including, and after the purchase of remaining 51% of the Avino mine) @ $1.45/share Cdn x .77 US/Cdn = $1.12 US $18 mil MC from: http://www.avino.com/other/goldstock100197.html --in 1997 "How Much Silver Does Avino Have?" "Operations at Avino's silver mine in Mexico are both open-pit and underground. I examined the reserves and interpolated the tonnage into silver ounces as follows: 28-million ounces proven; 50-million ounces probable and 27 million ounces possible." (Not all are 43101 compliant reserves & resources.--that is an old, third party report.) --focus is on being silver company. A plus. They actually have over five silver properties/projects. I only have numbers for one, the Avino mine = 28 + 50 + 27 = 105 Avino owned 49% of that, or 51.5 mil oz., prior to the purchase agreement for the remainder for an additional 4 million shares. $18 mil MC / 105 mil oz. = $.17/oz. You get "approx" 39.0 ounces in the ground for 1 oz. silver's worth of stock.
(I own shares of ASM.V)
UNCN.OB (UNICO INC) http://www.uncn.net/ Ray Brown, 530-873-4394 90 mil shares (about, in June, 2004) @ $.04/share $3.6 mil MC Three main properties: Bromide-- 372,000 ounces of gold? Silver Bell--15 mil oz silver? Deer Trail --287,000 ounces of gold and 27 million ounces of silver... but the lease on the Deer Trail will expire September 1, 2004 ($1 million payment due, plus fees (this money was successfully raised this week) or August 31, 2005 ($4 million total due), so they need to raise a significant amount of money. 49 mil oz. total. $3.6 mil MC / 49 mil oz. = $.07/oz. You have a lease on "approx" 93 ounces in the ground for 1 oz. silver's worth of stock.
Additional comments: Unico successfully was de-listed from the Berlin stock exchange, at their own request. Many small cap silver miners were recently listed there without their consent or knowledge, and have since requested to be de-listed. Apparantly, the Berlin stock exchange was a location where people could engage in unregulated "naked short selling", which is selling shares that they do not own, which can depress the price, and is similar to the selling of endless futures contracts which depress the price of gold and silver bullion.
This is also an example of the danger of these very small market cap stocks. It's as if they trade "by apppointment," and are not very liquid--as they are difficult to buy and sell in large quantities.
This is a significant development for Unico. They may well secure their lease on the Dear Trail property. Depending on the ability of the private investment group to follow through, Unico will be able to buy their option. Unfortunately, the press release does not list the share price of the deal, but I assume it's 10 cents. $5 million, at 10 cents/share, might be another 50 million shares, and also unfortunately, there is no information in the press release about any options or warrants. But Congratulations, Unico!
Explorers deserve their own category, since they cannot be valued by the method of looking at reserves and resources of ounces of silver in the ground. We do not know how many oz. they might have. They are exploring for that. A few explorers may also be producers, and they are both listed here, if they do not have well-defined resources.
This list, although at the bottom, in no way indicates that these companies are more highly valued, or less valued, than companies listed above. There may be less certainty in the companies listed below, and more certainty in the companies above.
It is also difficult to categorize a company as an explorer, since all silver companies always hold more silver properties that need to be explored. IE, everyone is an explorer!
The list above is not a list of producers, the list above is a list of companies with significantly measurable resources in the ground. Those below, generally do not. Or, if they do have resource numbers, the numbers are very small compared to their much larger exploration potential, and thus, they are listed here.
(The order in this list is by largest market cap first, not by "comparative value" of the market cap divided by the resources, as above.)
HL (HECLA MINING CO) http://hecla-mining.com/ firstname.lastname@example.org (208) 769-4100 118 mil shares outstanding (August, 2004) @ $6.05/share $714 million Market Cap (MC) near zero debt, cash: $123 mil (Feb., 2004) (est. 2004 production 9 mil oz. silver and 215,000 oz. gold ) La Camorra gold mine, 547,885 oz gold.) (x 10 = 5.5 mil oz silver equiv. San Sebastian silver mine, (proven & probable reserves) 3.8 mil (down from 8) Greens Creek silver mine (proven & probable reserves) 31 mil (HL owns 30% of this, but the 31 mil oz. number reflects that percentage ownership.) the Lucky Friday mine (proven & probable reserves) 10 mil. (down from 14) 5.5 + 3.8 + 31 + 10 = 48.9 Total silver equiv. reserves = 48.9 mil oz. $714 mil MC / 48.9 mil oz. = $14.60/oz.
Additional comments: Given that CDE made a share offer in week #36 for Wheaton River, I expect that Hecla will try a similar tactic very soon, and offer shares to acquire another silver company.
Hecla is the most expensive company on the list in terms of cost per oz. of silver in the ground. But HL has more oz. than listed in the "proven & probable" category used in this calculation. Vein mining makes reserve calculations difficult, and HL has rarely had more than about a 3-4 year picture of reserves ahead of them in 100 years of production.
Hecla has a net income of $6.2 million for the first quarter of 2004, which silver prices were high, and $8.9 million net income for the first half of 2004. Annualized, that's $24.8 million to 18 million. The higher number gives a P/E ratio of $714 mil MC / $24.8 mil = 28.7, which indicates to me that HL is way too expensive of a stock to buy. Other silver properties and companies in the silver world have P/E ratios of as low as 3.
At the NY Gold show in June, I spoke with Vicki Veltkamp, Hecla's vice president of investor and public affairs, and I listened to her 15 minute presentation on Hecla at the show. I felt that her presentation honored my work, since she focused on the fact that Hecla does not have substantial reportable reserves, due to the nature of vein mining. She also emphasized that they already had detailed plans for spending all of their available cash, of $123 million, which implied that they had nothing left over to buy silver bullion. Point: HL is not going to buy silver bullion with their cash anytime soon.
One of Vicki's arguments was that HL only produces 9 million ounces of silver, and that in a market that produces 500 million ounces of silver a year, that withholding production would not significantly move up the price. I think she's looking at the wrong numbers. HL's market cap has recently ranged from $600 million to up to $1,000 million. The remaining silver at the COMEX, available for delivery in the registered category is only about 50 million ounces, not the 500 million ounes annually produced. The available silver is valued, at $6/oz., at $300 million. HL could issue 1/4 to 1/3 more stock than they already have outstanding, and use the proceeds to buy perhaps $300 million worth of silver bullion, and break the price to sky high levels, which would boost profits enormously.
If HL mines 9 million ounces of silver a year, at a cost of about $5-6/oz. (because their profits are slim), then if the silver price rises to about $33/oz, and other costs remain the same, HL could be making $250 million dollars per year. It seems the largest silver companies have absolutely no vision about how they can affect the markets, and take a leadership role in the world of silver.
I urged Vicki that HL should use their stock or cash, if not for buying silver bullion, then to acquire other silver companies, since I believe their stock is overvalued. Vicki said HL does look at many acquisition opportunites, and would be interested in looking at others.
I expect silver bullion to continue to outperform HL stock at these prices. MGR.V MGRSF.PK (MEXGOLD RSCS) http://www.mexgold.com/ 52.5 mil shares fully diluted (spring 2004) @ $2.50/share Cdn x .77 US/Cdn = $1.92 US $101 mil MC inferred resource: 45 mil oz. silver + 1 mil oz gold. 1 mil oz. gold = + 10 mil oz. silver equiv "The estimate does not address significant additional mineralized structures known to be present on the property, or the potential for large strike extensions of known high-grade zones." February Financing was for the El Cubo Gold-Silver Mine is located in the Guanajuato gold-silver district in the Republic of Mexico. Historical reports cite district production at 1.2 billion ounces of silver and over 4 million ounces of gold. With capital spending and upgrades, and expect to produce up to 100,000 oz. gold equiv/year at $190/oz. At $400/oz, that may mean $210/oz. net profit, or $21 million positive cash flow/year, and yet, the purchase price was $21.5 million. Seems like they bought a mine, at a price, with a profit potential, of a P/E ratio of 1. Target to expand the El Cubo project resource to over 2 million ounces of gold equivalent. Given that historic production was 300 oz. of silver for each 1 oz. of gold, I think it's odd that they speak in terms of "gold equivalent". Why not emphasize the silver??? Converting their target of gold back to silver, at their ratio of 65:1, gives 130 mil oz. "silver equivalent". 55 + 130 = 185 "exploration potential" $100 mil MC / 185 mil oz. = $.55/oz. That's an "exploration potential target"
Additional comments: Gammon Lake is a large shareholder, 26.3%.
Mexgold announced bonanza grade discovery on Jan 13th, 11 kilos per ton silver, over 2 meters. Part of a section of "25.5-metres grading 1.16 grams per tonne gold and 961 grams per tonne silver."
CDU.V CUEAF.PK (CARDERO RSCS) http://www.cardero.com/ email@example.com Henk Van Alphen -- President (604) 408-7488 40.1 mil shares fully diluted (July 1 2004) @ $3.02/share Cdn x .77 US/Cdn = $2.33 US $93 mil MC ($17 million Cdn cash in the treasury)
Additional comments: Cardero has three silver properties in Argentina; two main silver exploration properties: Chingolo and Providencia.
Providencia -- high grades of silver, former silver mine, could have 100-250 mil oz. Chingolo -- Henk says, "may have 400-600 mil oz. "exploration potential" in 200-300 mil tons of rock." They got 30-40 grams (1.23 oz.) on the first drill hole, but hope to find 2-3 ounces silver/ton.
June, 2004: Company quote: "The Company is actively evaluating silver, gold, copper and iron-ore projects which will ensure the recognition of Cardero as a world-class exploration and development company."
AOT.V ASOLF.PK (ASCOT RSCS) http://www.bmts.bc.ca/aot/ 1 604 684 8950 39.7 mil shares fully diluted. (Nov 2003) @ $.29/share Cdn x .77 US/Cdn = $.22 US $8.75 mil MC (US) ---- Additional comments: They own 5.82 million shares and 388,000 warrants of Cardero at $.35, which usually is a greater asset value than their market cap. Ascot's share price is typically around 80% of the value of their Cardero Stock, and less liquid.)
(I'm listing this one out of order, not by market cap, and next to Cardero, because of their position in Cardero.)
It may be better to buy Ascot than Cardero, depending on prices. Check the math, and call Ascot to verify Cardero stock holdings, and number of shares.
* FCO.TO FCACF.PK (FORMATION CAPTL) (I own shares) http://www.formcap.com/s/Home.asp --totally redesigned website! firstname.lastname@example.org 604-682-6229 165 mil shares fully diluted, March 2004 @ $.425/share Cdn x .77 US/Cdn = $.33 $54 mil MC (Completed $10 million financing in late 2003, early 2004) Very large cobalt property: 1-3 million tons of 0.60% cobalt equivalent Cobalt prices are racing ahead, up to $25- $33/lb. see http://www.wmc-cobalt.com/prices.asp 2000 lbs/ton x 0.6% = 12 lbs/ton x $29.50 /lb. = $354/ton (rich ore) cobalt is $29.50/lb. recently, up from $9/lb. Formation Capital owns the Sunshine Silver Refinery (near Sterling Mining), worth $50 million. Break even cost $5-6/lb cobalt. The Idaho Cobalt Project is projected to produce 1,500 tonnes of cobalt per annum. = 3,000,000 lbs. production x about $ 20/lb profit? = about $60 mil profit/year??? FCO.TO also owns a few minor silver projects. The cobalt project needs more drilling, and with recent financing, things look bright. The refinery has started up, on time and under budget sunshinerefinery.com
I own shares of FCO.TO
* OTMN.PK (O.T. MINING) (I own shares) http://www.otmining.com/ email@example.com Jim Hess Tel: 514-935-2445 12.8 mil shares fully diluted (May 15, 2004) @ $4.90/share $63 mil MC Montana Historic silver production for the Butte district, from 1880 to 2000 was 714,643,005 oz. silver. They think their deposit may be bigger than "the richest hill on earth", which is located near their property, in the Butte district. The exploration potential for this company is astounding, if they are right.
The O.T. Mining Corporation Commences a Diamond Drill Program on Monday, August 23 at its Ruby Gold-Silver-Base Metal Property, Jefferson County, Montana
The O.T. Mining Corporation is pleased to announce the beginning of the first 5,000 foot (1,524 meters) segment of a scheduled 10,000 foot (3,049 meters) diamond drill program for 2004. Initial drilling will begin on the Kit Carson prospect, one of four large targets identified on its 8-square mile (2,072 hectares) Ruby property.
The property is located in southwest Montana midway between the world-class Butte mining camp, referred to for over 100 years as the “Richest Hill On Earth,” and the Montana Tunnels Mine.
The Ruby property encompasses the past-producing high-grade Ruby gold-silver deposit which produced an average of 2.44 ounces per ton gold and 38.66 ounces silver per ton. A 193 ton bulk sample of a high-grade base metal mineralized zone associated with the Ruby deposit returned 7.6% lead, 5.19% zinc and 1.31% copper per ton.
Multiple geophysical and geochemical targets have also been identified on the property as a result of O.T.’s aggressive and integrated exploration program. The geological characteristics of these targets are consistent with bulk tonnage million ounce gold equivalent zones and high-grade gold-silver veins. The rich nature of precious and base metal mineralization in these vein systems is characteristic of and illustrated by the past-producing Kit Carson mine. This deposit is situated adjacent to the Ruby property and according to old reports contained 0.88-34.28 ounces per ton gold, 35-527 ounces per ton silver, 1.96-11.84% lead, and up to 5% copper. O.T. controls the extension of this high-grade vein system from the border of the original Kit Carson mine.
This year’s diamond drill program will focus on targets identified by integrated and consistent geological, geophysical and geochemical indicators. A recently completed Quantec Titan 24 deep-looking ground geophysical (induced polarization, resistivity and magneto-telluric) survey has delineated multiple targets with characteristics indicative of sulphide mineralization. Each of these is associated with a Mobile Metal Ions (MMI) soil geochemical anomaly including a 2500’ by 750’ (762 by 229 meters) gold-silver response located on the Kit Carson target area. A significant Titan 24 anomaly has also been delineated on the North Anomaly target area and this response is interpreted to indicate the presence of mineralized and altered Boulder Batholith, host rocks to the mineralization at Butte. A copper, zinc and cobalt MMI anomaly occurs over this target.
Bush Drilling (Belgrade, Montana) has been contracted to perform drilling services. A drill will be on site on Saturday, August 21 to begin diamond drilling on O.T.’s Kit Carson target area. A second drill will be brought to the property and devoted to the Boulder Batholith geophysical and geochemical target at the North Anomaly.
Drill core will be transported to O.T.’s Basin Mill facility for logging and sampling. Assay results for these holes will be released as soon as they become available.
TVI.TO TVIPF.PK (TVI PACIFIC) http://www.tvipacific.com firstname.lastname@example.org Dianne (IR) Phone: (403) 265-4356 400.5 mil shares fully diluted (June 14 2004) @ $.135/share Cdn x .77 US/Cdn = $.10 US $42 mil MC "The company has a policy of not hedging or entering into forward sales contracts." Cash flow positive. + 2.5 % royalty on "Rapu Rapu" that should be worth about $1 million per year starting within 9-12 months. (a cash source for an explorer is a big plus) 14 projects in the Philippines. Producing a dore bar of 96% silver and 4% gold from Canatuan project with the following: Total silver = 7.1 mil oz silver Total gold = 182,000 oz. gold x 10 (@10:1) = 1.8 mil oz silver equiv. Total silver equiv (Canatuan) = 8.9 mil oz. + they own a drilling company with 20 rigs. + they have a "foot in the door" in China. + many other promising exploration properties in the Asian Pacific.
TVI exploded in price from 16 cents to 23.5 cents when they announced that they would be mining in China: "TVI Pacific Inc. Receives Landmark Approval for Wholly Foreign-Owned Enterprise (WFOE) Status From Chinese Government". see http://tinyurl.com/vwbw
They are primarily a silver explorer. The bonus is they are a producer, and are cash flow positive, which are both extremely rare for an explorer. In fact, the other producers mostly all lose money!
* NPG.V NVPGF.PK (NEVADA PAC GOLD) (I own shares) http://www.nevadapacificgold.com/ email@example.com (604) 646-0188 David Hottman 59 mil shares fully diluted (Aug 18th, 2004) (I strongly believe the company's "quick report" shows an outdated share structure of 43.8 million as of Aug 11th, as I've been keeping good track of this number in my weekly reports. However, I do know that some options recently expired, but I have accounted for that.) @ $.97/share Cdn x .77 US/Cdn = $.75 US $44 mil MC $2.8 million cash (April 2004) Amador Canyon Silver Project: 50-250 mil tonnes silver grades average 4 oz. sil/ ton in the deposit = 200 to 1000 mil oz. silver????? --very speculative at this point. Drilling needs to be done. $44 mil MC / 200 mil oz. = $.22/oz. $44 mil MC / 1000 mil oz. = $.04/oz.
A total of 3,873,800 units ("Units") were sold at $0.97 per Unit, each Unit consisting of one common share ("Common Share") of the Company and one-half of a share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to acquire one Common Share at a price of $1.20 per share for a period of one year. The Common Shares and Warrants are subject to a four-month hold period expiring on December 17th, 2004. (5.8 mil shares fully diluted, which is 3.8 mil x 1.5)
Excerpt: Core drill hole RRC04-07, includ[ed] a 90 foot intersection averaging 0.176 ounce per ton gold.
That's nearly 1/5th of an ounce of gold! At $406/oz., 0.176 ounce per ton is $71/ton, over 90 feet! If that was silver at $6.50/oz., that's like 11 ounces of silver per ton, which would be huge, somewhat like what IMA Exploration found in Argentina! Of course, gold is not as good as silver in my book, but still, that's a substantial find.
The 200 to 1000 mil oz. of silver exploration potential estimate for the Amador Canyon project is based on the size of the area, which may provide between 50 and 250 million tonnes of ore, times a low grade of 4-6 ounce per ton. 50 mil tonnes x 4 oz/tonne = 200 mil oz., the low end of the target range. 250 million tonnes x 4 oz/tonne = 1000 mil oz., the high end of the range. That target range is the expectation that the geologists are hoping the drilling will prove up. It will likely take several rounds of drilling and analysis of drill results to get a proper resource calculation, and plenty of time.
NPG.V has 10 gold projects, and one silver-but it may be big. The Chairman, David Hottman, says that 90% of the value of the company is in gold, NOT silver, and yet, I'm buying this company for the silver project of Amador Canyon only, and as if the gold componant was worth nothing. (The gold projects are a free bonus, in my book, and help to alleviate the risk of this explorer.)
Explorer in Nevada. They do not really know how much silver they might they have in the Amador Canyon project. They just did a $2.5 million private placement, and another $10 million private placement in late November. On the website, for David Hottman's bio, it says he was a founding member of Eldorado gold. "During his tenure, Eldorado's market capitalization grew from Cdn $7 million in 1992 to a peak of Cdn $781 million in 1996." Please note, exploration is risky, and costly.
Now that they are well-capitalized with over $10 million dollars, this company will likely do very well as they drill and prove up the deposits across all their properties.
Metalline's Sierra Mojada Project Status Report Wednesday May 5 Zinc & Silver in Mexico: Sierra Mojada. Sierra Mojada is a Silver District! Silver: Historic production was 10 mil tons of high grade ore... historic silver production went right "direct shiped" to the smelter, non-milled. It contained 500-1000 grams silver/ton, or 17.65 to 35 oz. ton. This means 170-353 million ounces of historic "high grading," non-milled, production. (Who knows how much silver is left?) That's the question with an explorer.
Zinc: Very high grades: 11.8% zinc. Potentially the lowest production cost in the entire zinc industry due to new "oxide deposit" chemical extraction process as revolutionary as "heap leaching". Exploring for up to 4 Billion pounds zinc.
(Merlin of MMGG.OB, and Harlan of EXR.V (friends, actually) both have reports that will educate you on the bullish story for Zinc.)
I own shares of MMGG.OB
MCAJF.PK (MACMIN LTD) http://www.macmin.com.au/ firstname.lastname@example.org 450 mil shares and options (Feb., 04) @ $.07/share $32 mil MC This stock seems extremely volatile in price, ranging from 8 cents to 13 cents. "Total Inferred Resource is 34.5 million ozs silver but the district is unexplored for epithermal silver and exploration to date suggests a district potential of 50 to 100m ozs Ag or perhaps much more." --"Macmin is a silver focussed company" The Texas Silver Project has in-ground resources of 44.5Moz of silver equivalent. (They own some Malichite, MAR.AX) Also, significant gold projects, perhaps several multi-million oz. potential projects.
The other benefit of FR.V is that the company is keen on acquiring new properties. This is where the best money is made for a company in today's bull market in silver, in my opinion. From the home page of the website:
"First Majestic recently announced the acquisition of Le Parrilla Silver Mine, Mexico, which is anticipated to be the first of several acquisitions over the coming months."
ECU.V ECUXF.PK (ECU SILVER MINI) http://www.ecu.qc.ca/indexen.html email@example.com (819) 797-1210 103.3 mil shares fully diluted = (6 January 2003) @ $.35/share Cdn x .77 US/Cdn = $.27 $28 mil MC ECU.V is also exploring other gold properties.
IAU.V ITDXF.PK (INTREPID MINRLS) http://www.intrepidminerals.com/ firstname.lastname@example.org Stephen Coates, Investor Relations (416) 368-4525 51 mil shares fully diluted (April, 2004) @ $.80/share Cdn x .77 US/Cdn = $.62 US $31 mil MC $3.2 million cash from Dec. 9 financing. Company's exposure is about half to gold, half to silver in several projects. Joint Venture with BHP Billiton focused on "Cannington" style silver deposits using proprietary BHP Billiton data. (all figures are "exploration potential") El Salvador - 38.5 mil oz. Argentina - 6 mil oz. Total: 44 mil oz. silver Total gold: ~690k oz. x 10 (10:1 ratio) = ~ 6.9 mil oz. "silver equiv" Total: 53 mil oz. "silver equiv". (exploration potential or indicated or inferred, not reserves)
The stock price exploded, nearly doubling, in response to the news of the above drilling results.
Since this company is about half gold and half silver, the 10:1 ratio really cuts down the "silver equiv" numbers, so keep in mind the "gold bonus" factor here. But it's like that with a lot of the companies on this list, so keep that in mind, and do your own math if you want to use the 70:1 ratio.
MAI.V MNEAF.OB (MINERA ANDES) http://minandes.com/ email@example.com (604) 689-7017 Art Johnson 90 mil shares fully diluted (April, 2004) @ $.46/share Cdn x .77 US/Cdn = $.35 US $32 mil MC Raised $6.6 mil in recent financing. owns 49% of the resource: "55 mil silver equiv. oz. resource" back in 2001. AT 60:1 silver:gold when gold was about $300/oz., about half/half silver and gold. Estimated: 16.7 mil oz "silver equiv" 15 mil oz. silver + 1.7 mil oz. "silver equiv" of 170,000 oz. of gold. They will be exploring for more: (The resources may be only 10% of the property.) 2.2 km stretch, open another 2.7, plus 3 other vein systems. significant high grade silver exploration potential. 7000 meters of diamond drilling. Plus a copper project, billion ton ore deposit.
Minera Andes has several significant bonuses that my method is not valuing properly. First, I undercount the gold, of course, so consider there is a "gold bonus" at current gold prices. Second, they will be doing significant exploration work to increase their resources, and they have recently raised the money to be able to pay for that exploration work. Third, they have a copper project, and copper prices are rising. I moved MAI.V to the explorers list to be more fair to their valutation.
* EDR.V EDRGF.PK (ENDEAVOUR GOLD) (I own shares) http://www.edrgold.com/ firstname.lastname@example.org Hugh Clarke, Investor Relations 1-877-685-9775 25.7 mil shares fully diluted (May 28th, 2004) @ $1.20/share Cdn x .77 US/Cdn = $.92 $24 mil MC As of May 28th, 2004, they have $9 mil Cdn cash. If all options and warrants are exercised, they will have another $9.8 mil Cdn in cash. They believe there may be a chance they will not need to dilute further to develop current silver production plans at the Santa Cruz Mine. Endeavour is not a "resource" play, but rather, a "production" play on silver. They are listed with the explorers because they do not have large drill results or a resource calculation outlining significantly large resources--they have only around 5 million ounces is all. But so they don't have a "prospective" mining property. Instead, they have a working mine! Like Hecla. http://www.edrgold.com/s/SantaCruzMine.asp --currently producing 600,000 oz. silver/yr. --plans to increase production to 4,000,000 oz. silver/yr
Additional Comments: John Versfelt, President of Cabo, was recently interviewed at http://www.resourceworldradio.com/ in show number 24. I highly recommend listening to the first part of the online radio show.
Cabo to Acquire Stratacan Inc. and Stratacan (Quebec) Inc. Cabo's acquisitions are now profitable, and providing cash flow. Not too much at this point, combined annual earnings before taxes around $900,000 Cdn if we extrapolate recent numbers, but I suspect these numbers will increase as drilling activity picks up with all the money raised by so many companies in the last 6 months. I suspect that a year ago, summer of 2003, when Cabo was laying the groundwork for these drilling company acquisitions, there was not nearly as much drilling being done, which skews the profit numbers lower than they might be in the future. The release:
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 19, 2004) - Cabo Mining Enterprises Corp. ("Cabo" or the "Company") announces that it has agreed to acquire the 60% of the shares of Stratacan Inc. and Stratacan (Quebec) Inc. (together, "Stratacan") not already controlled by Cabo. Agreed consideration is $83,333 in cash and 196,000 common shares of Cabo. Stratacan owns five drill rigs that conduct geotechnical and environmental drilling in the provinces of Quebec and Newfoundland and Labrador. Stratacan management reported combined revenue of $729,876 and net income $10,898 for their years ending November 30, 2003. R. Terry Snelgrove, P. Geo., will remain as President of Stratacan. The acquisition represents Cabo's first diversification into alternative drilling sectors and is subject to Cabo's satisfactory completion of due diligence, TSX Venture Exchange approval and the conclusion of a formal acquisition agreement.
Cabo's subsidiaries, acquired on June 30, 2004, have reported to Cabo their financial results to May 31, 2004. Petro Drilling (Maritimes) Ltd. ("Petro") reported revenue of $1.03 million and income before taxes of $0.16 million for the 5 months ending May 31, 2004. Heath & Sherwood Drilling (1986) Ltd. ("Heath and Sherwood") reported revenue of $10.8 million and earnings before taxes of $0.52 million for the 12 months ending May 31, 2004. These results were prepared and reported to Cabo by the management of Petro and HSD.
Cabo is a drilling services and mineral exploration company headquartered in Vancouver, British Columbia, Canada. The Company provides drilling services through its subsidiaries Heath & Sherwood and Petro. Cabo's mineral exploration properties are located near Cobalt, Kenora, and Sudbury Ontario, Canada. The Company's common shares trade on the TSX Venture Exchange under the symbol: CBE.
Cabo recently completed two private placements, one at .75 Cdn/share, and another at .83 Cdn/share, and successfully acquired two drilling companies.
SDR.V SDURF.PK (STROUD RSCS) http://www.stroudresourcesltd.com/projects-santo.html email@example.com Mr. George E. Coburn, President Tel: 416-362-4126 87.4 mil shares fully diluted (April, 2004) @ $.235/share Cdn x .77 US/Cdn = $.18 $16 mil MC JV partner with APM.V on Santo Domingo Silver Project in Mexico. 150 to 300 mil oz. exploration potential of the deposit. ownership is between 30-50%, so... 30% of 150 mil oz.= 45 mil oz., and 50% of 300 mil oz. = 150 mil oz. $16 mil MC / 45 mil oz. = $16 mil MC /150 mil oz. =
Additional Comments: three main properties in North America. The main exploration project is the Nieves, near the massive Fresnillo silver mine, owned by Penoles.
QTA.V is a Sister Company to Western Silver, WTZ above. See also Bravo Venture, BVG.V, another sister company, with 34.5 mil fully diluted shares (April, 2004)
PXI.V PNXPF.PK (Planet Exploration Inc.) http://www.planetexploration.info/mexico.asp firstname.lastname@example.org 30.8 mil shares fully diluted (Jan. 2004) @ $.70/share Cdn x .77 US/Cdn = $.54 $17 mil MC Planet holds an option to acquire a 100% interest in the high-grade 7,005-hectare Copalquin gold/silver property located in Durango, Mexico. "Resource estimates on the property have not been calculated since the discovery of the high-grade vertical fault zone, its existence may significantly alter Kennecott's and Fransisco Gold's original target potential of one million ounces of gold and 50 million ounces of silver based on their interpretation of a low-grade horizontal quartz breccia formation."
NJMC.OB (NEW JERSEY MIN) http://www.newjerseymining.com/ email@example.com Fred or Grant Brackebusch 23.9 mil shares fully diluted Apr, '04 @ $.70/share US $17 mil MC New Jersey Mining Company (NJMC) is engaged in exploring for and developing gold, silver and base metal ore reserves in the Coeur d'Alene Mining District of northern Idaho also known as the Silver Valley - one of the world's richest silver districts.
EPZ.V ESPZF.PK (ESPERANZA SILVR) http://www.esperanzasilver.com/s/Home.asp firstname.lastname@example.org 30.5 mil shares fully diluted (July 29, 2004) @ $.60/share Cdn x .77 US/Cdn = US $.46 $14 mil MC "Esperanza Silver Corporation is solely dedicated to the identification, acquisition and exploration of new silver projects." Looking for high grades.
Mag Silver nearly doubled last week in price, on no news.
Additional comments: --"MAG Silver Corporation enters the silver market as a powerful force. MAG combines a seasoned management team with two drill-ready geological extensions of high-grade world class producing districts. MAG controls 100% of the Juanicipio property adjacent to the Fresnillo District in central Mexico, currently producing over 12% of the world's silver from high grade underground vein structures."
The geologist, Peter K.M Megaw, is also working with EXN.V, another high grade silver project. Peter's philosophy was that it makes sense to go after very high grade silver projects that will be profitable regardless of the silver price.
EXN.V EXLLF.PK (EXCELLON RSCS) http://www.excellonresources.com email@example.com 87 mil shares fully diluted (Jan 9, 2004 press release) @ $.20/share Cdn x .77 US/Cdn = $.15 US $13 mil MC From http://www.smartstox.com/reports/excellon.html indicated = 63,400 t x 2738 g/t x .03215oz./g = 5.6 mil oz. silver inferred = 2100 t x 1,433 g/t x .03215oz./g = .1 mil oz. silver "gross in-situ value of mineralization is $31.4 million." EXN to own 51% of the project. Apex is the joint partner. 51% x 6.2 mil oz. = 3.16 mil oz. (Company expects 114 mil shares fully diluted after takover of Destorbelle, needed to bring project ownership up to 51%)
Additional comments: "Excellon ...is exploring and developing".... "a Bonanza grade Silver deposit in Mexico." The geologist, Peter K.M Megaw, is also working with MAG.V. From J. Taylor's write up on 2002: "After subtracting capital cost of US $1.8 million, custom milling charges and operating costs, management believes this underground development mine can, over the next two years, generate US $15.8 million or nearly $8 million for EXN's 51% share." That was when silver prices were under $5/oz.! The company plans to use these proceeds to further drill and explore the property. They believe the property may contain significantly more silver, as if what's known is only the "tail of the tiger"; furthermore, they believe they can fund exploration by mining the high-grade silver deposit that has been partly drilled.
DNI.V DMNKF.PK (DUMONT NICKEL) http://www.dumontnickel.com firstname.lastname@example.org (416) 595-1195 60 mil shares outstanding (April 15, 2004) does not include options and warrants. @ $.23/share Cdn x .77 US/Cdn = $.18 $11 mil MC Dumont stilll needs to raise and pay several million to Clifton Mining for 50%-60% of each property, and there are many properties. (See Clifton for more specifics on the JV agreement.)
Additional comments: Clifton's JV partner, doing active drilling work right now. And recent property acquisitions.
I do not like JV agreements due to the complexity of trying to determine ownership which is contingent upon many unknown factors that might change in the future. One man recently offered me an interesting suggestion. He simply said, "Why not buy both companies?"
* KRE.V KREKF.PK (KENRICH ESKAY) (I own shares) http://www.kenrich-eskay.com/ email@example.com Toll-free 1-888-805-3940 or (604) 682-0557 29.2 mil shares fully diluted (July, 2004) @ $.49/share Cdn x .77 US/Cdn = $.38 US $11 mil MC Recently completed a $2.3 million financing for exploration. Adjacent to Barrick's silver property, Eskay Creek, which is "the fifth largest silver producer in the world". 70% of the rights to The Property was once almost bought by Homestake (which was acquired by Barrick) for $35 million in 1996, and Homestake was going to fund all exploration and development. The buy out ended when metals prices collapsed, and Bre-X hit, and when the majors cut back on exploration budgets to stay alive. This means the market cap of KRE.V may be worth 100% / 70% x $35 million, or $50 million, plus exploration and development costs, to a major mining company, and likely worth much more today, due to inflation of the dollar, and the rise in the price of silver!
GPR.V GPRLF.PK (GREAT PANTHER RES) http://www.greatpanther.com firstname.lastname@example.org Robert Archer, President, & Kaare Foy CFO: 604 608 1766 25.4 mil shares fully diluted April 23, 2004 @ $.39/share Cdn x .77 US/Cdn = $.30 $8 mil MC "Great Panther Resources Limited has combined experienced management, access to capital and high quality projects in Mexico. Silver and gold prices gained 26% and 21% respectively in 2003 and GPR intends to leverage this through the acquisition and development of high quality silver and gold projects." --Option on the Topia Silver Mine in Mexico, formerly owned by Penoles, closed in 1999. Est. 5 years worth of resources left. needs payments totaling about $2.5 million over 3 years.
ROK.V ROCAF.PK (ROCA MINES INC) http://www.rocamines.com email@example.com 38.8 mil shares fully diluted (June 23, 2004) @ $.23/share Cdn x .77 US/Cdn = $.18 $7 mil MC Foremore project, 45km north of Eskay Creek
EGD.V EGDMF.PK (ENERGOLD MINING) http://www.energold.com/s/Default.asp firstname.lastname@example.org Fred Davidson President (604) 681-9501 16.8 mil shares fully diluted (June 30, 2002) @ $.50/share Cdn x .77 US/Cdn = $.38 $6 mil MC "advanced silver project in Mexico" Real de Belem -- property has "all the permits required for the commencement of a 200 tonne per day mining operation." A range of 571 to 3,713 g/t Ag. (may not conform to Canadian NI43-101 standards. ) A 16 hole, 1500 m drill program is currently underway. At any time during the currency of the Option Agreement, Energold will have the right to acquire a 100% interest in the Real de Belem project for an additional US$5.0 million.
GNG.V GGTHF.PK (GOLDEN GOLIATH) http://www.goldengoliath.com/ email@example.com 604-682-2950 32.4 mil shares fully diluted @ $.24/share Cdn x .77 US/Cdn = $.19 $6 mil MC Additional comments: Silver Explorer in Mexico in the the Sierra Madre mountains: Uruachic. They hope to take a collection of old silver mines and make them open pittable. They have some very high grades from chip samples from the tunnels, ranging from 100g to 500g all the way up to around and over 1000g/ton of silver.
LEG.V LEGCF.PK (LATEEGRA RSCS) http://www.lateegra.com firstname.lastname@example.org Michael Townsend, President Toll Free: 1-866-669-9377 Richard one of the IR guys. 38.7 mil shares fully diluted? (Jan 7, 2004) @ $.195/share Cdn x .77 US/Cdn = $.15 US $6 mil MC see also Teuton Resources Corp (TUO.V) --involved with 7 exploration projects, one near the Eskay Creek Silver Mine, one in China.
TBLC.PK (TIMBERLINE RES) http://www.timberline-resources.com Company contact: Bill Hoyt, director. 785-383-9246 4.88 million shares outstanding. @ $.75/share $3.7 mil MC The Company has acquired seven mineral prospects to explore. These prospects are located in Nevada, Idaho and Montana. The Montana property is near the property owned by Mines Management. Silver Property: Minton Pass project: 20 claims containing Revett formation silver/copper project in Northern Montana. At least 5 drill holes were drilled on or near the claim group in the 1970s and 1980s. A 1971 geologic report indicates that mineralized outcrops of Revett quartzite containing bornite and other copper minerals could be traced for about 1 mile along strike of the outcrop.A short adit was driven to expose the mineralization.Sampling results showed a stratographic thickness of 16.7 feet that averaged .7% copper and 1.78 opt silver. Detailed work plans are under development, pending acquisition and study of prior exploration data.
* PDO.V (PORTAL DE ORO RS) (I own shares) http://www.portalresources.net email@example.com Phone: (604) 629-1929 Reg Advocaat 9.45 mil shares fully diluted (mid 2004) @ $.41 Cdn x .77 US/Cdn = US $.32 $3 mil MC $500k Cdn cash in the bank; To be spent on exploring two properties, $200k each. Arroyo Verde Gold/silver Project: In Argentina. Option to own 100%, need about another $1 mil or less to exercise option. Property was explored a bit, and now, will be re-explored. Planning to do a 3000-meter reverse-circulation drill program, to go deeper, for Arroyo Verde. --Possible open pit, no historic workings, 200km to the east of IMA's properties. The property was formerly owned by Minera Andes recently, and Pegasus, who ran out of time and money at the bottom of the market in 1999. & San Rafael project (Gold and copper in Argentina) Portal Outlines Anchoris Copper-Gold Porphyry July 22
I own shares of PDO.V * AUN.V AUNFF.PK (Aurcana Corp) (I own shares) http://www.aurcana.com/ firstname.lastname@example.org CEO Ken Booth 604-331-9333 45.5 mil shares fully diluted (June 2004) @ $.115/share Cdn x .77 US/Cdn = $.09 US $4 mil MC Cash $650,000 Cdn, no debt Drilling to commence on high-grade, gold-silver targets. (in Mexico)
(I own shares of AUN.V)
ASLM.PK (AMER SILVER MINI) 2.75 million shares issued @ $1.20/share $3.3 mil MC Claim between CDE and the old Sunshine mine. JV with CDE subsidiary untill 2017. ASLM to receive 20% net royalty, & if silver prices reach $16.50 an ounce or above, the profit sharing goes to 40%. Coeur d' Alene, Idaho
BGS.V BLDGF.PK (BALLAD GLD SLVR) http://www.balladnet.com email@example.com 16.3 mil shares outstanding (fully diluted?) @ $.165/share Cdn x .77 US/Cdn = $.13 US $2 mil MC Bonanza grade "grab samples" in southern Argentina near IMA. 32 oz./T gold and 22 oz./T silver grab samples.
GRG.V (GOLDEN ARROW RESC) (I own shares) http://www.tse.com/en/mediaNews/newsreleases/news7116.html firstname.lastname@example.org Sean Hurd (800) 901 0058 (604) 687-1828 (same # as for IMR.V, which spun off Golden Arrow) 4.3 mil shares outstanding.--number from Sean Hurd. $750,000 Cdn in the bank. @ $.80/share Cdn x .77 US/Cdn = $.616 $2.6 mil MC 35 exploration properties Argentine & Peru Property portfolio --Spun off from IMR.V (IMA Exploration) I bought a few shares of GRG.V this week at .65 Cdn, it's certainly my smallest holding. (See, sometimes, I do buy stock AFTER it appears on this list.)
BBR.V BBRRF.PK (BRETT RES) http://www.bmts.bc.ca/bbr/ 17.2 mil shares fully diluted @ $.16/share Cdn x .77 US/Cdn = $.12 $2.1 mil MC Silver projects: Yukon --grab sample of 611 g/t Ag Argentina --samples from 31 to 5640 g/t Ag
CLZ.V (Canasil Resources Inc ) http://www.canasil.com/ 22.4 mil shares fully diluted (July 2004) @ $.13/share Cdn x .77 US/Cdn = $.10 $2.2 mil MC Exploration properties in Mexico and B.C.
LSM.V LASCF.PK (Langis Silver & Cobalt Mining Co Ltd) no website: Patrick Sheridan Jr. President and Secretary-Treasurer Phone: (416) 628-5936 11,565,890 issued and outstanding common shares. (not fully diluted) @ $.17/share Cdn x .77 US/Cdn = $.13 $1.5 mil MC
CBP.V CPBMF.PK (CONS PAC BAY MIN) http://www.pacific-bay.com/ Guilford Brett, IR (604) 682-2421 11.2 mil shares outstanding (not fully diluted) (Jan 1, 2004) @ $.12/share Cdn x .77 US/Cdn = $.09 $1 mil MC
--CBP.V is the smallest market cap silver stock that I know of. It is truly a "penny stock".
------------------------------------------------------------------ ------------------------------------------------------------------ Final Category: Silver stocks FOR YOU and I TO RESEARCH further:
I strongly recommend you try to "get ahead of me," and research these stocks to see if I left out any great values. I probably did. I simply did not have time, or could not yet find information (without using the telephone) on all the two key figures needed to get the "price per oz." in the ground. You need: 1. The number of shares fully diluted x share price to get the market cap. Then, 2., you need an estimate of the oz. in the ground. Usually, I've been finding the oz. in the ground resource estimates right off the company webpages, and I get the number of shares by looking for it burried in the financial statements like the quarterlies or annual reports, which are also usually right on the company webpages. Have fun researching for silver companies, and let me know if you find any good ones, and I'll add them to this list.
Rivet silver Doug warte & frank duval 509 921 2294
Mascot Silver Lead Mines MSLM.PK http://www.mascotsilver.com/ Coeur d' Alene, Idaho "Though we have reserves and could conceivably mine them, it frankly makes no sense to do so at current prices. ... The end of the silver bear will bring a number of the now-dormant small companies back to life..."
Silver Buckle Mines Inc (SBUM.PK) Coeur d' Alene, Idaho
Merger Mines Corp (MERG.PK) --Leased by Sterling Mining 2.7 mil shares out? Coeur d' Alene, Idaho
Mineral Mountain Coeur d' Alene, Idaho
Independence Lead Coeur d' Alene, Idaho
Metropolitain Mines Ltd (MEMLA.PK) --next to the Sunshine in Coeur d' Alene, Idaho
http://www.oxusgold.co.uk/ 216,559,942 Fully Diluted shares oxus will spin off: Khandiza is a high-grade zinc, silver, copper and lead deposit located in the Sariasia region of southeast Uzbekistan.
Silver Mountain Lead Mines Inc (SMLM.PK)
Silver Verde May Mining Co (SIVE.PK)
Silver Surprize Inc (SLSR.PK)
Standard Silver Corp (SDSI.PK)
Horn Silver Mines Co (HRNS.PK) (801)-281-5656
Andean American Mining Corp AAG.V ANMCF.PK http://www.andeanamerican.com/ --concentrates solely in Peru Peru currently stands as the largest gold producer and second largest copper producer in Latin America as well as the second largest silver producer in the world.
Here are a few more stocks to look up. I don't even know if some of these are silver miners.
Lfex - Lucky Friday Extention Kcpm - King of pine creek Vins - vindicator silver,
Osburn Wallace APNE ALS Royal Silver Mines (RSMI) Bunker Hill ? Nabob New Era Signal
Articles like this one, that present opportunities like these, can tend to move the markets in these stocks. So, be careful when buying. If you place any market orders at the open for any of these small stocks, you might end up buying at prices that are significantly higher than you intended. Limit orders might be better, but then, you run the risk of your order not being filled if the stock price exceeds your limit. And bid / ask spreads such as 15% on small cap silver stocks are not unusual. Markets can especially be moved given the wide readership on the internet. I've seen markets moved even by small private newsletters such as lemetropolecafe.com and silver-investor.com (I subscribe to both). Some of these stocks can move up 15%, 30%, 50% or even over 100% in a single day. Thus, valuations can change very, very quickly. So, be careful, and re-check the numbers if the prices move up. Do your own math.
Also note, the majority of these companies have an emphasis on silver. Most silver is produced as a by product of other mining, like lead or zinc or copper mining. Those companies that primarily produce other minerals are not featured in this report. This also helps to explain and prove, that silver is undervalued. If silver miners cannot mine silver profitably, and this report shows that to be true, then something is wrong with the silver price. It must go higher.
This report, and my method of valuing silver companies, depends on a much higher price for silver than exists today to be most accurate and most successful. If silver prices go up significantly, my picks will do well. If silver prices remain flat, then many of my picks should not do well.
And finally, again, BULLION DEALERS: I have about 15% of my investment in silver bullion, and near to 99% in silver and silver stocks combined. GoldIsMoney.com
Many people have told me that they don't get information this good even when they sign up for annual newsletter subscriptions from others that cost from $100 - $300.
The beauty of the internet is that it is helping knowledge to increase, and it is a form of communication that those who commit crimes of monetary fraud upon us cannot control. Please make the most of it, and please forward this on to others.
Final Disclaimer: I have not received any compensation from any public silver stock company for writing up my weekly report on "Silver Stocks--Comparative Valuations". I own shares of the following 18 silver stocks: GRG.V, ASM.V, CMA.V, PLE.V, PDO.V,AUN.V, EDR.V, KG.V, MGN, CBE.V, NPG.V, SVL.V, MMGG.OB, TM.V, OTMN.PK, FCO.TO, KRE.V, FR.V. These are required disclaimers by the SEC: whether I've been paid, and what I own. I believe the SEC intended this to be a cautionary note that I own these shares, not as a recommendation or endorsement. I reserve the right to buy or sell any stock at any time. I believe the SEC does not require a disclosure regarding finder's fees. Nevertheless, I have begun to receive "finder's fees" from a few companies.
-- Posted 23 August, 2004 | |
Last Three Articles by Jason Hommel, Gold Is Money
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