This week's report lists 111 silver stocks. There are 31 silver
stocks that list reserves, resources (and exploration potential.) which I
calculate by using my "ounce in the ground" forumula. There are 50
explorers. There are about 30 additional "silver" stocks with incomplete
information. Additions & Changes from
last week are in bold.
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teacher, and you ought to explain the silver story to all who will listen.
goldismoney.com
is designed to help spread the word. I suggest you email the link to
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To read about my religious bias, see my other website,
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. Hint, see Ezekiel 38. To read
more about my religious bias when it comes to investing, see my essay, Biblical Guidelines for Managing your Money
Kitco
reports silver at $5.97/oz. as of Friday, 5:50 PM West Coast US, which was used to calculate the following
figures. The CAN $ / US $ conversion factor is
.7336. I will use .73 for ease.
How to read the following table:
Stock Symbol that works at Yahoo! Finance (Company name) / Silver oz.
"in ground" for 1 oz. silver's worth of stock. / valuation price change since last week relative to silver price change (and stock dilution, and resource changes, if any) /
additional comments (EXPT is "exploration potential")
Company names in bold have summaries below with updated information.
ABX
(BARRICK)
0.97 down --infamous hedger (16? mil oz. gold
hedged, 3 yrs production)
CDE (COEUR D'ALENE)
1.3 down --(also gold)
in debt, produces at a loss.
IPOAF.PK (INDUSTL PENOLES)
1.8 down --current producer, mostly family owned, hedged?
GRS GAM.TO (GAMMON LAKE)
3.1 up --current producer, owns 26% of Mexgold
SIL (APEX SILVER)
3.3 even --zinc
bonus, low grades, cash rich--$345 million! in debt
GNG.V GGTHF.PK (GOLDEN GOLIATH) --Historic silver
district in Mexico
GPR.V GPRLF.PK (GREAT PANTHER)
* KRE.V KREKF.PK (KENRICH ESKAY)
MMG.V MMEEF.PK (MCMILLAN GOLD)
EGD.V EGDMF.PK (ENERGOLD MINING)
LEG.V LEGCF.PK (LATEEGRA RSCS)
* AUN.V AUNFF.PK (AURCANA CORP)
TUO.V TEUTF.PK (TEUTON RES)
PCM.V PAOCF.PK (PAC COMOX RES)
BGS.V BLDGF.PK (BALLAD GLD SLVR)
SRY.V (STINGRAY RSCS)
ASLM.PK (AMER SILVER MINI)
BBR.V BBRRF.PK (BRETT RES)
ROK.V ROCAF.PK (ROCA MINES INC)
MTB.V (Mountain Boy Minerals Ltd)
LSM.V LASCF.PK (Langis Silver & Cobalt Mining Co Ltd)
CBP.V CPBMF.PK (CONS PAC BAY MIN)
* = I own shares Silver oz.
"in ground" means and counts all "silver oz. in the ground" as the same,
but they are NOT EQUAL. Some are more certain and others are more
speculative. Some are higher grades, some are lower grades.
They range from most certain to least certain such as: "proven & probable
reserves," "measured, indicated, inferred resources." This single
number next to each stock symbol above represents the approximate number
of ounces of silver in the ground you are buying title to when you invest
the equivalent of one ounce of silver into buying shares in the company at
current prices. Here's
the math on how to get it. 1. Get a market cap in U.S.
dollars. Divide that by the silver price, so the market cap is
denominated in terms of silver ounces. Then, divide the ounces in
the ground by the market cap as denominated in silver. This tells
you how many ounces of silver in the ground you are buying when you
give up one ounce of silver in you hand for shares of stock, instead.
(It 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.
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/
--------------------------
WEEKLY COMMENTARY (All new in this section):
I'm insanely bullish on silver.
I just returned from speaking in Vancouver on June 13-14, 2004 at the World Gold, PGM & Diamond Investment Conference.
Since I gave several speeches on silver, I've become more bullish on
silver. Why? Several reasons. Normally, I write once
a week, which gives me time to think slower.
But in preparing for my speeches, I
was forced to evaluate all the bullish reasons for silver together, all
at once. And while speaking, I was forced to think faster.
After speaking, many people had
questions on one specific area of the silver market, which I was
usually able to answer, because I've been reading and writing about
silver now for years.
In general, the people who came to me
with questions were already bullish on silver, since they went to
attend a mining show, and since they came to see me speak on
silver. And yet, it seemed to me that they just wanted me to look
them in the eye, and really say how bullish on silver I really
was. They were looking for confirmation. In other words,
they asked very general questions like "How high do you think silver
will really go," and "How soon," and then they might ask, "Do you
really think so?" even after I answered such questions. Each
time, I had to re-think everything, and re-present everything, and
re-summarize everything.
When writing, I don't like to repeat
myself. When speaking, and answering people's questions, I was
forced to repeat myself, over and over.
Furthermore, the feedback I received
from people was instant. When speaking, I have the chance to see
the facial expressions change as I present each bullish argument.
However, when I write on the web, I present many arguments at once in a
single essay, and so I don't necessarily know which arguments resonate
the strongest with the readers, and convince them the most.
So, here are the two most bullish factors affecting silver.
1. The world has nearly run out of silver.
2. The nations of the world have printed up nearly unlimited amounts of unbacked paper money.
Put together, these two factors have never occurred before in the history of mankind.
True, the world was once using silver
as money in many nations at once. But back then, in the late
1800's, the world had 5-10 billion ounces of silver to use as
money. Today, we have much, much less, because most of the silver
that has ever been mined in the world has been consumed by industry,
and we may be down to about only one billion ounces or less.
True, there have been hyper-inflations
as paper money has been printed to excess. But at those times, it
was usually in one nation at a time, and there was still plenty of
silver (and gold) to be used as money.
Today, no nation is using silver as
money. And today, the world is almost out of silver. These
factors create this once-in-history opportunity.
Silver today may be the best investment opportunity in the history of mankind.
One of the arguments that seemed to
resonate the most with listeners was that at one time in history, a
day's wage was a silver dime, or a silver quarter, or up to one or two
silver dollars for miners, who were among the highest paid
professionals in the world.
This fact alone presents the
case: "A day's wage used to be a silver dime, or quarter."
When I said that, faces lit up in recognition of the bullish case for
silver. The reason why this argument is the best is that it shows
how undervalued silver is, without putting a dollar amount on the
change in value that will take place.
What's more, I can say with confidence
that a day's wage will probably be less than a silver dime, since
today, the world has consumed most of the world's silver. Thus, a
silver dime may become a week's wage, or even a month, I don't know!
But let's value that in terms of
dollars. Today, a day's wage is up to $100 to $200 for skilled
labor, let's say $150. At $6/oz., that's 25 ounces of
silver. A silver dime contains .0715 of an ounce of silver.
25 / .0715 = 350. I'm saying that if the world has a similar
amount of silver as it did in the past, silver could rise by a factor
of 350 times higher price than at $6/oz. However, since silver is
more scarce today than in the past, and since we have many industrial
uses that are consuming silver that we did not have in the late 1800's,
then I'm way more bullish than that.
So, How High?
I'm saying I'm way more bullish on
silver than saying it can go 350 x $6, or $2100/oz. I believe the
price of silver will far exceed that due to the exhausted supplies, and
the unrelenting massive industrial demand.
So, How Soon?
Given that the world is almost out of
above ground refined silver, a permanant major price rise could happen
at any time. The two silver surveys estimate there is about 200
million ounces to 600 million ounces of silver in known verifiable
locations. At the COMEX,
as of close of business: 06/18/2004, there are 45.8 mil oz. registered
for delivery, and 71.9 million oz. Eligible. However, the
silver in either category may be held by long term investors, who may
be reading this very commentary, and who may not sell until much higher
prices. Silver is coming to market, uneconomically, through
three main sources: 1. As a byproduct of other mining, and
2. as people inherit silver and then sell it for the quick cash,
and 3. as governments and bullion banks dump it. These supplies
are meeting current demand. Literally, however, at $6/oz., a
billion dollars cannot buy silver anymore. By the time a
billionaire tried to buy silver bullion with a billion dollars, the
price may be pushed up to about $40/oz. At $6/oz, a billion
dollars is 167 million ounces. There is just not that much silver
for sale at $6/oz. in the world today. If a billionaire was
willing to pay any price to obtain "a billion dollars of silver", and
if he found out that he could only obtain 25 million ounces, he might
bid the price up to $40/oz.! Therefore, a major price
rise can happen at any time one very wealthy person decides to buy.
The other reason I'm so much more
bullish is that nobody presented any arguments to me that refuted what
I was saying. If you go out in public, and say something
ridiculous, you expect to be corrected rather quickly. But I
wasn't. But two people raised some objections, which I will
mention.
The first was "The dollar will never
be destroyed, because the U.S. is too big." I will refute this
argument by saying that the U.S. is not bigger than the world, just
like the Titanic was not bigger than the ocean. The world is
bigger. Furthermore, all frauds in the history of the world, and
all fraudulent paper money in the history of mankind, all come to an
end at some point.
Some investors said, "The dollar may
collapse to zero, but not in my lifetime." This is a rather sad
commentary on the state of mind of many older investors. They
have no trouble investing in fraudulent dollars, thereby helping to
support fraud. They may be approaching the end of their lives,
but they have no thought of the eternal ramifications that their
actions here on earth may have on their soul. If anything, the elder
investors should be even more concerned that they are doing the right
thing in God's eyes, not only for their own souls, but also for the
benefit of those who will come after them. Unfortunately, it
seems as if they are only out for the quick buck! The 70 and 80
year olds! Amazing!
Another investor said, "Perhaps people
are not investing in silver, because they have heard this silver story
for 15 years now, or longer." However, the silver story is
changing significantly. There has been an ongoing deficit, and it
has reduced above ground silver supplies at about the same rate as the
size of the deficit. So, the silver story is changing. The
warning is now more clear and urgent than ever before. So, if
these investors who have heard the story have not yet moved into silver
to protect themselves, they will have absolutely nobody but themselves
to blame.
I would also like to address two other arguments that came up at the show.
The first was that India has plenty of
silver that they may export, and may cap the silver price.
Actually, India is a large importer of silver. Therefore, India
is not capping the price, but supporting the price. There is no
need to wonder whether India's supplies of silver may cap the price
until they become sellers.
Second, it was pointed out that mining
exploration is extremely risky. The point was made by several
authors that only one in 1000 or one in 3000 exploration projects
become mines. That may be true during the past 24 year bear
market, but will not likely remain true if we have a bull market that
drives the price up significantly. Today, there are virtually no
silver mines operating at a profit, and most silver is produced as a
byproduct of lead, zinc, copper, and gold mining. The fact that
silver mining is an unprofitable business goes to show exactly why
silver is too cheap!
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 silver researcher, Charles Savoie.
------------------
Paper money fails when paper money is
no longer able to buy the things that the holders of the paper money
wish to buy. Today, that is happening more and more each
day. Supply shortages are evidence of communism, which, it has
been proven, does not work. We are seeing supply shortages in
uranium, electricity, natural gas, oil, iron, steel, cement, copper,
zinc, cobalt, nickel, selenium, and silver. (And I may have left out
many other important commodities.) If you have a billion dollars,
and you cannot buy a billion dollars of silver or basic commodities,
your dollars are no good! Well, actually, a billionaire will
always be able to buy a "billion dollars worth" of silver, but just not
at today's prices!
Perhaps the reason that it has taken
so long for paper money to fail in the U.S.A. is that the very wealthy
people have nothing substantial to buy. The U.S. is already
industrialized. We already have plenty of mansions, sky scrapers,
highways, bridges, and those expensive things. However, in China,
they are still industrializing. They are building everything at a
rapid pace, and so, the raw materials for building all those things are
finally running out.
------------------
Inflation vs. deflation? Low interest rates vs. high interest rates?
I believe whether there is inflation
or deflation, the price of gold and silver will go way up from here,
and the reason is how much paper money they have created; excessively
and fraudulently.
If there is inflation, of course, gold and silver will go up.
If there is deflation, it is usually
the result of bankruptcies. If money is being destroyed due to
bank failures, it would encourage other depositors to withdraw their
money and to buy gold and silver, which do not default.
Richard Russell was recently bullish
on silver, and then he backed off. He has written that if there
is a deflation, that silver will not perform well, since silver is
"demonitized" during a deflation. Richard Russell has said that
the high levels of debt are like a short position on the dollar, and
that it is dollars (not gold or silver) that will be in strong demand
to pay off the debt. Thus, he concludes that people may even sell
gold or silver to raise the dollars needed to pay off debt.
Let me refute Richard's
argument. I believe that those who are in debt will be more
likely to buy silver to pay off their debts! As an example, look
at General Motors, (GM). GM has a market cap of $27 Billion
dollars, and a P/E ratio of 10. Thus, they earn about $2.7
billion per year. GM has $28 billion in cash, and $297 billion of
debt. Thus, it will take GM over 100 years to pay off their
debt! If interest rates rise by more than 1% of what they are
today, GM is effectively bankrupt. If not for the debt, GM may
look like a good company. I imagine the only thing that will save
GM from bankruptcy is a massive inflation. Interestingly, GM can
cause such an inflation by buying silver, and pushing the price up to
about $50/oz., by spending less than a billion dollars. GM has
$27 billion on hand, so why not? But GM is not likely going to be
able to sell $297 billion dollars worth of gold or silver to pay off
their debt.
What is Richard Russell
thinking? There is not enough gold or silver at these prices to
pay off the dollar denominated debts, not at all. The debt load
on society is perhaps $30 to $40 trillion, and there is less than $2
trillion in gold. If anything, people are more likely to take out
a second mortgage on their homes, or borrow on their credit cards
(strategies I do not recommend), and use the money to invest in silver
bullion, not the other way around!
Historically speaking, allowing silver
to be used as money is "inflationary" since silver would add to the
money supply that consisted otherwise, only of gold. However,
today it is different. Today, neither silver nor gold is used as
money. Today, a deflation will be caused by bankruptcies, not by
reducing silver's role as money. You cannot reduce silver's role
as money any further than it already is, since silver it not being used
as money anywhere in the world. With no monetary demand for
silver, monetary demand can only go up, it cannot go down.
Furthermore, M3 could deflate all the
way down to $4.5 trillion from the $ 9 trillion it is today, and the
gold price could still skyrocket to $16,000/oz., instead of
$35,000/oz. Deflation will not cause the gold price to
drop, but rather, it will go up, regardless.
Now, on to interest rates.
If interest rates stay low, such easy
money creation by the U.S. Federal reserve will create further
inflation, and will cause gold to go up.
If interest rates go up, it will
likely be the result of people selling more bonds than the Fed can buy,
since the Fed has been buying bonds to keep up the bond market.
Thus, if people sell bonds, it will be because they will be looking for
another competing asset in which to invest that will provide a return,
such as gold and silver.
Therefore, I do not care whether we have more or less inflation from here, I do not care where interest rates go from here.
The point I make is that it is the
past inflation and money creation that has already taken place that
will eventually catch up to us and will cause gold and silver to go
way, way up. This is a much neglected point among market
commentators.
How much money is there? How much wealth is there in bonds? These are the two biggest questions, often overlooked.
There is over $9 trillion in M3, money
in U.S. banks. If all that money would be backed by the official
U.S. gold of 261 million oz., the gold price would be over $35,000/oz.
There is over $20 trillion in
bonds. If all that "money" was backed by U.S. gold, the gold
price would be over $110,000/oz.
No changes in inflation or deflation, or changes in interest rates, can change those facts.
------------------
The death of paper money!
Modern society today uses paper money,
it is said, for "convenience" and by "mutual agreement". This is
communism, make no mistake, and it will fail. Some people think
that gold and silver have no future, unless everyone were to move to
gold and silver all at once, and they do not see that happening, and so
they are willing to "follow the crowd" and stay in paper money.
What they do not realize is how much
money has been fraudulently created, and how few investors need to buy
gold and silver to cause a major change in the prices!
By the time less than 1% of dollar
holders sell dollars for gold and silver, the prices will far exceed
$1000/oz for gold and $50/oz. for silver! Thus, it will not take
a shift of all of society to create major price changes. And by
the time silver rises to reach $50/oz. how many more people than 1% of
society will want to buy silver? If it's more than 2%, we will
have a positive feedback source of escalating monetary demand.
And that's exactly how paper currencies fail. When they fail,
they fail rather quickly, so that people literally have no escape and
no warning, except for the warnings that are being issued now by people
like me.
People who think they will be able to
"follow the crowd" back into paper money will likely never get the
chance, or they will move far too late.
------------------
The big name newsletter writers.
At the gold show in Vancouver, many newsletter writers were very bullish on silver, moreso than gold. David Morgan,
of course, is the recognized "silver guru", and there was myself, of
course. Two other big names are Doug Casey, who is also bullish
on silver. Doug Casey's latest newsletter covers the silver fundamentals. And Bill Murphy is bullish on silver, and has supported Ted Butler's work. Bill Bonner, at the gold show in New York in June 2-3, did not mention silver, but had just issued a silver informational email. Jim Dines is also bullish on silver.
The warnings are going out. Very
well respected newsletter writers have investigated the silver
situation, and are putting their reputations, and investment portfolios
on the line, and into silver. Are you?
For more information, or to sign up for my free weekly silver stock report, please see goldismoney.com
------------------- Interestingly, Ted Butler wrote
commentary this week that also expressed very high price expectations
for silver, but Ted did not consider monetary demand. His title
was, "$200 an Ounce Silver? – Can it Happen?" But Ted goes on to say that "that nothing bad has to happen for silver to
hit $200, $500, or $1000." !!! Ted lists his reasons as 1. The coming short squeeze at COMEX 2. Lease repayment demands. 3. Industrial users panic. 4. Unbacked silver certificates 5. Depletion of World government silver inventories. 6. Too Much Money, Too Many People, Too Little Metal
$200 an Ounce Silver? – Can it Happen? http://www.investmentrarities.com/06-14-04.html
I want to elaborate on a point Ted made in point #4. Ted writes
that Swiss banks have issued silver certificates, perhaps in excess of
the silver they hold. So, Ted concludes: "At some point,
with a high price of silver, the issuers could panic and look to limit
losses. Not necessarily at $8 or $10, but certainly at $20. What’s the
only way for them to limit their losses? Buy silver."
Actually, the banks can temporarily limit losses also by SELLING silver, and I
think this is what recently happened as silver dropped from $8 down to
$6. I heard stories of Swiss silver being sent over on planes
each day which drove the price down. This supply is
unsustainable, of course.
You see, if you are bankrupt already, and have promised more silver
than you can deliver, and the price is rising, and your operations are
huge, you can actually sell silver to knock the price down, and thus,
limit your paper losses. But only temporarily, of course.
It's somewhat like transferring borrowed money from one credit card to
another with a lower interest rate, to stave off bankruptcy. It
works to keep the interest down, but it does not eliminate the debt,
and the debt will actually keep increasing. Similarly, selling
silver works to limit the paper losses, but it does not eliminate the
silver debt, it increases it.
------------------- Some people have suggested that I
contact Coast to Coast to try and be a guest on the show. I
have. Please contact them if you would like to hear me on their
show.
------------------- SAFES: Need a safe to store
your silver? Steve Miele in Grass Valley at the Sports & Swap
shop can deliver a safe anywhere in the U.S., and can have a safe
custom built to your specifications, such as to hold silver bullion. Call Steve at (530)
272-4179. If you get a very large, refridgerator-sized, heavy
safe, in excess of 1000 pounds, you have to have it delivered to a
local loading dock or Freight dock, and then arrange delivery from
there, which is a bit complex, because you may need to hire several
people at such a freight dock to operate a fork lift. (Sorry, I had the phone number wrong last week.)
-------------------
Limited Time Special Offer! Buy 1 Annual Subscription to Jason's Monthly Top Picks and get ALL other articles FREE!
Because I have a market reach, I also receive a lot of tips about
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ones that came my way. If you believe I may have an edge based on
my work and position... then the best way for me to share this with you
is to is tell you 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
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------------------ 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. The
following links contain email addresses for hundreds of different
newspaper's "letters to the editor"
The first two links above have lists of
emails, but the third one is awesome because the emails are all in one
neat list, so I have copied it to my site, too.
This final link lists the email addresses for
about 200 world newspapers, and about 100 U.S. newspapers, so you can
email them all at once. You have to copy the list, and paste it
into your email, and there are direct instructions on tips for
submission of letters to the editor. Most editors, most papers,
want letters of 250 words or less, and many also want your full name,
address and telephone number. So the task is easy. But
if 500 people write letters on the silver market to about 300
newspapers around the world, I believe wonderful things will happen.
Here is a sample letter:
May 21, 2004
Dear Editor,
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.
Sincerely,
Jason Hommel
Grass Valley, USA
Goldismoney.com
(530) 274 3450
When I sent out my letter above
to that list, I received about 70 "undeliverable/delivery has failed"
messages. I sent it BCC, or "blind carbon copy", which
means it may be interpreted as spam. It
may have had more of an impact if I sent out my letter to each address
individually, but I just didn't have the time to do that this
week. Maybe next month.
I also did not include my full address, which some editors require. But I'd rather keep a bit of privacy in that regard.
------------------
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 sponsors of the Sound Money Bill in New Hampshire are now looking for donations so they can take this to other states!
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.nh-inews.org/ http://veritasradio.com/
-- site temporarily disabled.
Current status of the NH bill:
The bill will live until the November elections. It'll have a
different #,
but we now have 6 months or so to get EVERYONE we need on board.
Now looking to raise $25,000 to $35,000 for "phase II", to get set up with an office and staff training..
Looking to raise $500,000 for "phase III", to take this to about 5 other states.
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 !
Video copies of the sound money bill press conference are available for a $35 donation.
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.
----------------------------
I wrote an article predicting that Silver Companies will buy silver,
and urging Silver Companies to buy silver with their cash, to use silver
as money, and sell silver as needed for expenses. See
http://news.goldseek.com/GoldIsMoney/1069879327.php
That article is now having an effect! It is being discussed by
several large "cash rich" silver companies, who are seriously considering
the idea of holding their cash in the form of silver.
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.
----------------------------
The following is a "must read": Ted Butler's best ever explanation
of how silver is manipulated lower than it should be. http://www.investmentrarities.com/11-04-03.html
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.
So 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:
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
$26,400,000,000,000: World stock market, June 2002: http://www.nyse.com/press/1044027443845.html
$20,200,000,000,000: U.S. bond market, yr end, '02:
http://tinyurl.com/vr7g
$11,447,800,000,000: U.S. GDP, 2004 q1 http://www.bea.doc.gov/bea/dn/home/gdp.htm
$11,300,000,000,000: NYSE U.S. stock market, April, '04 (363 bill/s x $31.14/s ave.) http://nyse.com (See: Market info: quick facts)
$9,101,000,000,000: M3 (money in U.S. banks) April, '04
http://tinyurl.com/vra0
$7,183,392,668,476: US debt, 5-18-04 http://www.publicdebt.treas.gov/opd/opdpenny.htm
$2,360,000,000,000: U.S. annual budget 2005 http://tinyurl.com/3xbd2
$2,572,160,000,000:
Marcos/Phillipine "black/unofficial" gold: 200,000 (to 500,000) Tonnes @
$400/oz. (Book: "Gold Warriors")
$1,860,000,000,000: World "official" gold, 145,000 T @ $400/oz.
http://tinyurl.com/vrcc
$724,174,342,365: Total U.S. paper currency & coin in circulation, Dec. 31, '03 http://www.fms.treas.gov/bulletin/index.html
$700,000,000,000: U.S. annual budget deficit (current).
$272,000,000,000: Market Cap of Microsoft (03-2004)
http://tinyurl.com/vrcn
$222,000,000,000: M3 increase (money in U.S. banks) from Jan 2004 to April 2004 (in three months).
$180,000,000,000: Debt of Ford Motor Co. (03-2004)
http://tinyurl.com/vrd1
$104,400,000,000: US gold, 261 mil oz., @ $400/oz.
http://tinyurl.com/vsr9
$100,000,000,000: all the world's gold stocks (estimated?)
$75,000,000,000: Money flowed into Equity funds in the first quarter, 2004
$7,090,000,000: all the world's
silver stocks (59 of them on this list, as of Dec. 5th, 2003) (Perhaps $10 billion by April?)
$6,710,000,000: 671 mil oz. of "identifiable" silver bullion in the
entire world, according to GFMS @ $10/oz.
$469,000,000: 46.9 mil oz.
of "registered" COMEX silver bullion @ $10/oz. http://tinyurl.com/vrcw
So, what do all those stastistics mean?
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 still 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.
So, at the very least, 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.
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 valued the following silver companies
to make 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 are way too expensive to buy for the silver exposure for
your portfolio.)
BHP Billiton Ltd (BHP) http://www.bhpbilliton.com/
--'produces 40 mil oz. silver annually from one mine'
Additional comments: unfortunately, BHP has a
53 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.
Grupo Mexico SA de CV (GMBXF.PK) http://www.gmexico.com/indexi.html
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 still don't have anything exciting for the silver alone.
$2085 mil MC / 280 = $7.45/oz. cost.
KGHM Polska Miedz http://www.kghm.pl/en/index.php
--KGHM is the world`s sixth-largest copper 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.
Compania de Minas Buenaventura SA (BVN) http://www.buenaventura.com/
NYSE:BVN
- Peru´s largest publicly traded precious metals company
--produces over 10 mil oz of silver per year
--looks way too expensive for the silver alone: 3.6 Billion market cap.
-------------- -------------- --------------
ABX (Barrick) http://www.barrick.com/
535 million shares outstanding (not fully diluted)
@ $19.76/share
$10,512 million Market Cap
5.5 million oz. / year gold production.
--production hedged out for 3 years, or about 18 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, 18 mil oz.
gold, at $400/oz., would be valued at $7.2 billion dollars. At
$500/oz, it's $9 billion.
--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 "rich" of about $1 billion dollars.
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."
$10,512 million Market Cap / 1710 mil oz. = $6.15/oz. silver
You may get "approx" .97 ounces in the ground for 1 oz. silver's worth of
stock, if the silver isn't hedged.
Additional comments: 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.
Barrick boasts a "cash cost" of $189/oz., for gold for 2003, yet their cash has dropped from $2 billion down to $1
billion. It
could be due to the hedging, locking in precious metals prices at low
prices, and/or hedge covering that explains the monetary loss in the
light of their low cash costs.
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. I do not know whether, or how,
that has yet been resolved.
I don't really count Barrick as a silver company, but it's listed here
for comparison's sake, and due to popular/continuous demand.
I expect silver bullion to continue to outperform ABX
stock at these prices. CDE
(COEUR D'ALENE) http://www.coeur.com coeurir@coeur.com (208) 769-8155 or (800) 624-2824
214 mil shares outstanding (June 2004) not fully diluted
@ $4.22/share
$903 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." "At the beginning of 2004, silver reserves totaled 175 million ounces and gold reserves 1.4 million ounces."
175 + 14 = 189
(Produced 14.2 mil oz. silver in latest fiscal year (early 2004)
$903 mil MC / 189 mil oz = $4.78/oz.
You get "approx" 1.25 ounces
in the ground for 1 oz. silver's worth of stock.
Additional comments: 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 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.
I expect silver bullion to continue to outperform CDE
stock at these prices.
IPOAF.PK
(INDUSTL PENOLES) http://www.penoles.com.mx
397.5 mil shares outstanding (2002 annual, unchanged since 2001)
@ $3.60/share
$1431 mil MC
419 proven and probable reserves of silver (from 2002 annual report
on website)
$1431 mil MC / 419 oz. silver = $3.42/oz.
You get "approx" 1.75 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.
The word late Feb. 2004 from ECU Mini, who reported to lemetropolecafe.com, is that Penoles has
hedged several year's worth of silver, that is, they have locked in to sell mostly all their silver at low prices. Set when prices were lower. How
much lower, and at what price, is anyone's guess. 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."
78.5 million oz. silver refined by the metals division in 2002, and
1 mil oz. gold.
They probably refine almost all the silver that comes out of Mexico.
They probably produce about 34 mil oz. of silver from their mines annually,
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.
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.
I've heard rumors that Penoles is
running out of silver at one of their big mines, perhaps only a year or
two of silver left. This particular rumor caused the man who
heard it to investigate and invest in silver, so apparantly, he
believes that the rumor is true. I have no further information at
this time.
GRS GAM.TO (GAMMON LAKE) http://www.gammonlake.com/ gammonl@sprint.ca
(902) 468-0614
62 mil shares Fully Diluted: (Feb 27th, 2004)
@ $7.22/share
$448 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.
$448 mil MC / 231 mil oz.= $1.94/oz.
You get "approx" 3.08 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.
SIL (APEX SILVER) http://www.apexsilver.com/ information@apexsilver.com
(303) 839-5060
47.4 million shares outstanding (late May, 2004) (not fully diluted) (derived from share price & market cap, late May, 2004)
@ $17.30/share
$820 mil MC
cash on hand: ~ $350 million after
Jan 30th share offering, and March 16th convertable debenture.
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
$820 mil MC / 454 mil oz = $1.81/oz.
You get "approx" 3.31 ounces
in the ground for 1 oz. silver's worth of stock.
Additional comments: A positive article was written about Apex in BusinessWeek Online: A Bright Gleam On Apex -- Friday June 4
"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%.
Apex
is now the most cash rich silver stock on the list. About $350
million! In
this report, for weeks, I have been urging Apex to buy silver bullion
with their cash. And I know many investors have contacted Apex
about buying silver bullion in the last 6 months.
I spoke with Igor, at investor relations about this topic at the San
Francisco Gold show in November, 2003, and again at the NY Gold show in
June, 2004. For the record, Apex plans to not develop theirSan Cristobal
project until 2007! Therefore, they will be holding $350 million
in the form of paper cash, and not silver, until then. This is an
extremely stupid plan, in my opinion, and I asked Igor about it.
I asked Igor if he was considering buying silver bullion with their
cash, while they wait. Astonishingly, Igor asked me, "Would you
defend us from shareholder lawsuits if we did so?" I couldn't
believe it, but this answer goes to show Igor's mindset on the
subject. If anything, I think shareholders should sue Apex if
they don't use silver bullion as money, but that's my mindset!
I asked Igor, "If you believe silver is money (and he said he did),
then for what company in the world would it make the most sense for
them to acutally hold silver as money?" Igor responded, "I can't
speak for other companies."
I said, "Wrong, and that's exactly my point. A major silver
company should be a leader, and show leadership, by using silver as
money as an example, to show the other companies of the world that yes,
it does make sense to use and hold silver as money."
Igor's mindset is also reflected by two other comments he said to
me. Igor said he gets 5-6 ideas each day from shareholders, and
he obviously cannot persue them all. This goes to show that he
does not even remotely consider this as a viable or valid idea.
Next, Igor also indicated to me that he felt that if he "spent" his
cash on silver bullion, that he would not have anything left to develop
his project, or that he would not be able to develop his project.
This, again, goes to show his mindset, and the ridiculous attitude he
has towards silver bullion. His comment shows does not really
consider silver bullion to be money at all, but rather, only a consumer
good. Igor's comments indicated to me that he felt that that once
silver is purchased, the "money" is gone forever.
Finally, Igor also said that he had over 90% shareholder approval for
the company's existing plans, and that, therefore, there is no reason
or need to change anything. He said this as if 90% of existing
shareholders somehow specifically expressed an interest in the company
holding and keeping paper money cash in the banks, in preference to
holding silver bullion. What nonesense!
The last thing I said to Igor was that he should at least let the
shareholders decide whether to hold paper cash, or silver bullion, for
the next 2-3 years while the company waits to develop their
project. I said to put it to the shareholders for a vote.
He said he had no intention of doing so, again, because of existing
shareholder approval rates for the company's current plans.
For the record, Apex has $350 million in cash. The available
silver at the COMEX in the registered category, under 47 million
ounces, at $6/oz, is only worth $282 million dollars.
Charlie Savoie, who writes for silver-investor.com wrote to me the following about Apex after I published the report above:
Jason,
I read your comments on Igor Levental. I know from Morgan that
Igor read "The Silver Raiders" which I released last fall.
Apex is there to make money on
silver. However, only once the close of the low price era
ends. They won't hasten the end by buying bullion. Because
the major shareholder, [George] Soros, is a CFR director, and Chairman
of CFR is Peter Peterson, who heads Federal Reserve Bank of New
York. Maybe you read my latest at Silver Investor.
George Comninos was until 18 months
ago or so, an APEX director. He was with NM Rothschild,
London. Levental knows all relevant aspects. Apex is run by
the World Money Power, a bunch of old-line rich and intermarried
European (controls the big European banks) and British royalty dating
back centuries and their U.S. counterparts, for which I just learned
there is a 10 year waiting list. The only full list I have dated
1969, lists deaths which occurred in 1968 and 1969. Meantime,
those who want full status, will go along with the program as it
changes (example, break up the Soviet Union, replace it with China as
the superpower threat in the balance of power scheme necessary to
complete the 200 year plan described in May 1902).
I don't see Apex buying any
metal. I hope Sterling and the others you mention will allocate
at least 50% of funds to that end. Everything possible will be
done to hold silver down till after the Presidential election.
Butler talks like silver will fly before then. Locally, I have a
very hard time finding coin silver, 10 oz bars are scarce, 1 ouncers
are scarce except those with designs that aren't preferred (Christmas
bars etc.)---CHARLIE
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., currently at
$.47. 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. That's another plus, in
general, for the silver market
if Billionaires are paying attention to it. 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. I expect most of the other
stocks on this list to outperform or significantly outperform silver
bullion in the long run from today's prices.
FSR.TO FSLVF.PK (FIRST SILVER) http://www.firstsilver.com/ info@firstsilver.com
(604) 602-9973 or (888) 377-6676
38.6 mil shares fully diluted (Jan 2004) @ $1.87/share Cdn x .73 US/Cdn = $1.37 US
$53 mil MC
From the Company's main page at their url:
"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.
$53 mil MC / 42 mil oz. = $1.25/oz.
You get "approx" 4.76 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.
3rd quarter, 2003, FSR.TO produced 389,154 oz. silver, and 604 oz.
gold. and revenue was $2.09 million for the 3rd quarter. They produced
at a loss, (a penny per share). They are unhedged, and remain committed
to remaining unhedged.
Additional Comments: 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. 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.
After I have been harranging PAAS
in these reports for being in debt for months, they finally rid
themselves of their debt by converting their debentures.
PAAS "proudly" reports having $120 million in paper cash, most of which
it has had now for over 6 months--ever since they went into debt by $90
million. They still refuse to recognize that silver is money, and
they refuse to hold their money in the form of silver.
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 will 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."
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.
MFN MFL.TO (MINEFINDERS) http://www.minefinders.com/
34.1 mil Shares Fully Diluted (Late 2003?)
@ $6.58/share
$224 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."
$224 mil MC / 195 mil oz. = $1.15/oz.
You get "approx" 5.18 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. MFN also now
lists their resource figures on their website's main page. I'm sure
investors appreciate this. I do.
A one property company. The Carmen
gold-silver deposit on their Monterde property in the Sierra Madre belt
of Chihuahua State, Mexico. Significant
exploration potential.
It was reported by a press release that 16%-17% of KBR.V is owned by silver bull Jim Puplava of http://www.financialsense.com, which I think is a rather solid endorsement of the company.
WTZ WTC.TO (WESTERN SILVER)
(formerly western copper) http://www.westernsilvercorp.com info@westernsilvercorp.com
Jay Oness Toll Free: 1-888-456-1112
43.3 mil fully diluted (April 2004)
@ $6.65/share
$288 mil MC
(not actively mining)
$14 million Cdn in 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 double the numbers, and infilling inferred to indicated:
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.
$288 mil MC / 287 oz. = $1.00/oz.
$288 mil MC / 1000 oz. = $.29/oz. --exploration potential
You get "approx" 5.97 ounces
in the ground for 1 oz. silver's worth of stock.
Exploration Potential = 21
Additional comments: 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
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"
$41 mil MC / 42 mil oz. = $.97/oz.
$41 mil MC / 1000 mil oz. = $.041/oz.
You get "approx" 6.15
ounces in the ground for 1 oz. silver.
Exploration Potential: 145
Additional comments: 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.
Congradulations to Clifton!
SSRI SSO.V (SILVER STANDARD RESOURCES) http://www.silver-standard.com/ paull@silverstandard.com
(604) 689-3856 or (888) 338-0046 51.7 mil shares fully diluted (May 1, 2004)
57
mil shares fully diluted (could bring in another $45 million) as of May
15, 2004 (not sure if this number is right, could not confirm at
the website, but it came in a forwarded email from Paul, and I'll use
it, because I'm so bullish on the entire sector.)
@ $11.16/share
$636 mil MC
debt free, cash: $Cdn 60 mil
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.)
$636 mil MC / 872 mil oz. = $.73/oz.
You get "approx" 8.18 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! Let it be noted that 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 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. 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. I say you can get a similar kind of diversification
by owning stock in many silver companies.
* TM.V TUMIF.OB (TUMI RESOURCES) (TUY Frankfurt
Exchange) (I own shares) http://www.tumiresources.com nicolaas@attglobal.net
Nick Nicolaas IR (604) 657 4058
24 fully diluted shares (Mar. 1, 2004)
@ $.96/share Cdn x .73 US/Cdn = $.70 US
$17 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
$17 mil MC / 25 mil oz. = $.67/oz. ***I'm using this number***
$17 mil MC / 50 mil oz. = $.34/oz. (exploration potential)
You get "approx" 8.87 ounces
in the ground for 1 oz. silver's worth of stock.
Exploration Potential: 17 (likely plus more after bonanza silver discovery
late November, 2003.)
Tumi soared in late November, after the company announced a bonanza
grade silver discovery after drilling. This should significantly increase
the numbers for their "exploration potential", but no word yet on the increase.
It takes time for the geologists to estimate all of that, but investors
went crazy over it immediately.
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.
Look at: Tinka TK.V (tumi's sister company)
A pretty big gold/copper property in Peru (Tumi owns 30% of it)...
That could mean significantly increased assets for Tumi.
I own shares of TM.V.
SHSH.PK (SHOSHONE SILVER) http://www.shoshone-mining.com
Bill Hoyt, 785-383-9246
18 million outstanding shares
@ $.54 US
$9.7 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 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 not paper promises. If there is dollar devaluation, such options
may look cheap, but on the other hand, it also might expire.
Total: 4 mil oz. silver, plus an option on 20.9 mil oz. silver at blende.
$9.7 (plus $6.2 mil for leases) / 4 mil oz, plus 20.9 mil oz. (24.9 mil oz.) = .64/oz.
You get options and leases that will give "approx" 9.4 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 info@oremex.com 28.8 mil shares fully diluted (End of May, 2004) after, and including financing?
@ $.70/share Cdn x .73 US/Cdn = $.51 US
$15 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 management 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)
$15 mil MC / 24 mil oz. = $.61/oz.
$15 mil MC / 100 mil oz. = $.15/oz. --exploration potential
You get "approx" 9.73 ounces
in the ground for 1 oz. silver's worth of stock.
Exploration Potential: 39
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."
CZN.TO CZICF.PK (CANADIAN ZINC) http://www.canadianzinc.com/ czn@canadianzinc.com
1-866-688-2001
67.3 mil shares fully diluted as of Dec., 2003 (as stated in the proxy,
p.8) 78.5 mil fully diluted shares as of June, 2004 @ $.75/share Cdn x .73 US/Cdn = $.55 US
$43 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.
$43 mil MC / 70 mil oz. = $.61/oz.
You get "approx" 9.72 ounces
in the ground for 1 oz. silver's worth of stock.
The number of fully diluted
shares DECREASED from over 80 mil shares down to 78.5 mil shares.
Perhaps some warrants went unexercised, not sure. But I was
keeping my own tally for a while, and maybe my math was incorrect.
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.
SRLM.PK (STERLING MINING) http://www.sterlingmining.com/
RDemotte@aol.com
Ray DeMotte 208/676-0599
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)
@ $6.00/share
$100 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
$100 mil MC / 231 mil oz. = $.43/oz.
$100 mil MC / 550 mil oz. = $.18/oz. (exploration potential)
You get "approx" 13.8 ounces
in the ground for 1 oz. silver's worth of stock.
(Exploration potential is 33.)
Additional comments: I wrote an article on SRLM in late Dec.
See: Sterling
Mining
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 still 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."
IMR.V IMXPF.OB (IMA EXPLORATION) http://www.imaexploration.com
49,059,825 mil Fully Diluted shares (May 27, 2004)
@ $2.84/share Cdn x .73 US/Cdn = $2.07 U.S
$102 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.
$102 mil MC / 243 mil oz. = $.42/oz
You get "approx" 14.3 ounces
in the ground for 1 oz. silver's worth of stock.
(Exploration potential might be (times 4) or 57.
Additional comments: Positive drilling results are coming in, and drilling continues.
IMA has many other silver properties, and they plan to spin these off into a new company.
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.
FAN.TO FRLLF.PK (FARALLON RESOURCES) http://www.farallonresources.com/fan/Home.asp
(604) 684-6365 Erick Bertsch
77.5 mil shares fully diluted as of April 1, 2004
@ $.65/share Cdn x .73 US/Cdn = $.47 US
$37 mil MC
Exploration and development in Mexico.
Run by hdgold.com (Hunter-Dickinson)
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.)
$37 mil MC / 98 mil oz. silver equiv. = $.38/oz.
$37 mil MC / 167 mil oz. silver equiv. = $.22/oz. --exploration
potential
You get "approx" 15.9 ounces
in the ground for 1 oz. silver's worth of stock.
Exploration potential = 27
Additional comments: 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/
45 mil shares fully diluted October 2003
@ $.38/share Cdn x .73 US/Cdn = $.28 US
$13 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.
(Still much exploration work to do.)
$13 mil MC / 32.7 mil oz. = $.38/oz.
You get "approx" 15.6 ounces
in the ground for 1 oz. silver's worth of stock.
GGC.V GGCRF.PK (GENCO RESOURCES) http://www.gencoresources.com/
IR: Rob Blankstein: 604-682-2205, or info@gencoresources.com 20+ mil shares fully diluted (April, 2004)
@ $1.00/share Cdn x .73 US/Cdn = $.73
$15 mil MC
--Producer in Mexico. http://www.gencoresources.com/reserves.html
484 x .03215 = (15.5 oz) x 2.3 mil t = 35.8 mil oz. silver
2.00 x .03215 = 148,000 oz. gold x 10 = 1.5 mil oz. silver
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
$15 mil MC / 40 mil oz. silver = $.37/oz.
You get "approx" 16.4 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.
RDV.TO RDFVF.PK (REDCORP VENTURE) http://www.redcorp-ventures.com/ http://www.redfern.bc.ca/index.html
52.7 mil shares fully diluted (March 2004)
@ $.35/share Cdn x .73 US/Cdn = $.26
$13 mil MC
http://www.redfern.bc.ca/projects/tulsequah/exploration_resources.html#results
9 mil tonnes indicated and inferred at 107.5 g/t x .03215
= 31 mil ounces silver (3.4 oz/ton low grade silver, with other minerals)
(also have significant gold ($30/ton at $400/oz.) and zinc $60/ton at
$.46/lb.)
728,000 oz of Gold x 10 = 7.3 mil "silver equiv"
= 38.3 mil oz. silver equiv.
$13 mil MC / 38.3 mil oz = $.35/oz.
You get "approx" 17.0 ounces
in the ground for 1 oz. silver's worth of stock.
Additional comments: 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.
Redcorp Ventures Ltd.: Brokered Private Placement Financing Closed ($3 million)
ADB.V ADBRF.PK (ADMIRAL BAY RESOURCES) http://www.admiralbay.com/ info@admiralbay.com
604 628 5642 -- Curt Huber-- Business Development
33.3 mil shares fully dilluted. (March, 2004)
@ $.99/share Cdn x .73 US/Cdn = $.72 US
$24 mil MC
They have $6 million cash.
--owns an option to earn 70% interest in "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.
$24 mil MC / 89.3 mil oz. = $.27/oz.
You get "approx" 22.2 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
still 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.
PLE.V (PLEXMAR RESOURCES INC)
http://www.paradox-pr.ca/ -- STILL an website inactive. Check Sedar. or
http://www.plexmar.com/
Guy Bedard, President, Phone: (418) 658-6776 Fax: (418) 658-8605 info@plexmar.com "
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 fully diluted (March 2004)
@ $.205/share Cdn x .73 US/Cdn = $.15 US
$9.3 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.
$9.3 mil MC / 38.4 mil oz. = .24/oz.
You get "approx" 24.7 ounces in the ground for 1 oz. silver's worth of stock.
* MGN (MINES MGMT) (I own shares) http://www.minesmanagement.com/
info@minesmanagement.com
(509) 838 6050 Doug Dobbs
12.4 mil shares fully diluted (April 2004)
@ $4.05/share
$50 mil MC
261 mil oz. silver resources. Previous drilling spent over $100
million drilling the property.
$50 mil MC / 261 mil = $.19/oz.
You get "approx" 31.0 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!
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.
HDA.V (HUSIF pink sheets symbol?) (HULDRA SILVER)
no website
Phone: Magnus 1 (604) 261-6040
6.924 million shares out (fully diluted) (Nov or Dec '03?)
@ $.305/share Cdn x .73 US/Cdn = US $.22
$1.5 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
$1.5 mil MC / 8 mil oz. silver = $.19/oz.
You get "approx" 31.1
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."
* SVL.V STVZF.PK (SILVERCRST MINES) (I own
shares) http://www.silvercrestmines.com/ info@silvercrestmines.com
(604) 691-1730
25.9 million fully diluted March, 2004 @ $.83/share Cdn x .73 US/Cdn = $.61 US
$16 mil MC
$3 mil cash in the til.
Now the Honduras and El Salvador "Resource" totals 43 million
plus the exploration potential of 40 - 100 million in Honduras
plus Mexico, --see news release from last month, plus Guatemala another unknown but
geologically similar to main property in Honduras and El Salvadore all
three are within 25 miles from each other.
Silvercrest added 14.3 million oz. of resources at El Zapote, El Salvador, 4-6-04
The range of exploration potential is between 89 - 149 million oz.
$16 mil MC / 89 = $.18/oz.
$16 mil MC / 149 = $.11/oz.
You get "approx" 33.8
ounces in the ground for 1 oz. silver's worth of stock.
(Exploration potential = 56+ oz.)
Additional comments: April 6th: SilverCrest Reports El Zapote Resource Estimates http://biz.yahoo.com/bw/040406/65883_1.html
--Silvercrest added about 14 million oz. of silver resources in the April 6th press release.
The project in El Salvador is only
20 km from the property in Honduras, and the property in Guatemala is
15km away, so only one mill will be needed for the three when a
production decision is made.
Currently drilling El Zapote, El Salvador.
I own shaers of SVL.V
EXR.V EXPTF.PK (EXPATRIATE RECS) http://www.expatriateresources.com/ info@expatriateresources.com
1-877-682-5474 Dr. Harlan D. Meade, President and CEO 103 mil shares fully diluted June 2004 (including the Atna buy out)
@ $.23/share Cdn x .73 US/Cdn = $.17
$17 mil MC
$1.2 mil CAN capital in the till no debt.
Mostly a base metals company: Zinc. Also has some silver
& gold.
Total metal content of the six projects with resources... "Using
current metal prices, the gross metal value of Expatriate's interest in
the base metals in the properties is approximately US$1.56 billion as compared
to US$540 million for its share of the silver and gold."
Metal: Expatriate share of the project:
Zinc 2.67 billion lbs.
Copper 385 million lbs.
Lead 202 million lbs.
Silver 63.1 million oz.
Gold 426,700 million oz.
Gold x 10 = 4.3 mil "silver equiv".
(+ 33 mil oz silver from the buy out of Atna's portion of the Wolverine project)
$17 mil MC / 100 mil oz. silver = $.17
You get "approx" 34.5 ounces
in the ground for 1 oz. silver's worth of stock.
Expatriate will acquire Atna's 39.4% interest in the Wolverine
Joint Venture for cash payments of $2 million, the issuance of 10
million common shares (the "Transaction Shares") and 5 million share
purchase warrants (the "Warrants"), each Warrant entitling Atna to
purchase one common share of Expatriate at a price of $0.32 for two
years from issuance
Wolverine is rich in precious metals containing about
75,000,000 ounces of silver and 352,000 ounces of gold.
Thus, Expatriate is acquiring 39.4% of
75 million ounces of silver (29.5 mil oz.), and 39.4% of 352,000 ounces
of gold. The gold portion, at 10:1 ratio, is (3.5 mil oz.) of
"silver equiv". Thus, I'm adding 33 mil oz. of silver to my prior
total. I'm also going to add in 10 million common shares, and 5
million warrants, for an additional 15 million shares fully
diluted. To help evaluate the acquisition, that's 15 mil shares
fully diluted at .27 Cdn x .74 = .20. .20 x 15 mil shares = $3
mil MC US + $1.48 mil US cash = $4.48 mil MC / 33 mil oz. silver =
$.135/oz. acquisition cost. This is significantly less than the
current cost of the company's resources, or about $.22/oz., thus I see
the acquistion as good for existing shareholders of Expatriate at the
moment.
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. 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 zinc.
ABI.V ABMBF.PK (Abcourt Mines Inc.)
no website Jeff Tremblay (IR) (418) 575-1169
26 mil shares fully diluted (May, 2004)
@ $.15 share Cdn x .73 US/Cdn = $.11
$2.8 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
$2.8 mil MC / 19 mil oz. = $.15/oz.
You get "approx" 39.8
ounces in the ground for 1 oz. silver's worth of stock.
Additional comments: looking to raise $5 mil to reopen the gold mine.
needs $5 mil to reopen the silver mine. (drilling the silver mine planned for summer, 2004)
needs $5 mil for the zinc project.
* ASM.V ASGMF.PK (AVINO SILV GOLD) (I own shares.) http://www.avino.com/ shares@avino.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)
@ $1.20/share Cdn x .73 US/Cdn = $.88 US
$14 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'm
only have numbers to count 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.
$14 mil MC / 105 mil oz. = $.14/oz.
You get "approx" 43.4 ounces
in the ground for 1 oz. silver's worth of stock.
Additional notes: There are 4 additional silver properties that I
don't have numbers for. Consider this a "silver bonus"!!!
Mexican mining law once stated that a controlling interest had to
be owned by Mexicans, which explains why they only have a 49% interest.
That they don't have a controlling interest is a minus. This law has changed.
The mine was operational until the mine went into temporary closure in
November 2001. So there is in place an existing mine, with working infrastructure,
which is a bonus. There is a need for drilling in order to test the
potential that was stated in the feasibility study.
(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)
@ $.065/share
$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) or August 31, 2005 ($4 million total due), so they need
to raise significant money.
49 mil oz. total.
$6 mil MC / 49 mil oz. = $.12/oz.
You have a lease on "approx" 50 ounces in the ground for 1 oz. silver's worth of stock.
Arazona law is that a company cannot
issue stock for less than 10 cents/share. So if Unico is going to
do a financing, it will be no less than 10 cents. Plus, they will
need a $4 million financing, all total, which would add 40 million
shares so it would be $13 million MC / 49 = $.26/share. If they
only raise $1 million, more or less for the Sept 1 2004 payment, then
there would be less dilution at this price, and the rest could be
raised by August 31, 2005 at higher silver prices, or perhaps not at all if the silver price stalls.
Without the Dear Trail property, Unico has 20 mil oz. of silver.
$4 mil MC / 20 mil oz. = .20/oz., or about 30 oz. of silver for 1 oz. of silver's worth of stock.
Ray Brown has been in this business a
long time, and is excited that he's got a bunch of younger guys working
on the property now, and he's encouraged by the upward direction of the
price of precious metals.
Explorers deserve their own category, since they cannot be valued by
my 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.
This list, although at the bottom, in no way indicates that these companies
are more highly valued than companies listed 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. However, in a few cases where a company does list their
exploration potential, I do provide a number of what that might give
you, in terms of silver ounces in the ground, for an ounce of silver's
worth of stock.)
HL (HECLA MINING CO) http://hecla-mining.com/ hmc-info@hecla-mining.com
(208) 769-4100
118 mil shares outstanding (derrived from the market cap and share price late May, 2004)
@ $5.99/share
$707 million Market Cap (MC)
near zero debt, cash: $123 mil (Feb., 2004)
(est. 2003 production 9 mil oz. silver)
(the La Camorra gold mine, 412,000 oz gold.) ... (x 350/5 = 28 mil silver
equivalent oz.)
412,000 oz. gold x 10 = 4.1 mil oz silver equiv.
San Sebastian silver mine, (proven & probably reserves) 8.7 mil
(produced 3 mil)
the Greens Creek silver mine (proven & probably reserves) 31 mil
(produced 3 mil) (HL owns 31% of this, but the 31 mil oz. number reflects that percentage ownership.)
the Lucky Friday mine (proven & probably reserves) 14 mil. (produced
2 mil) 4.1 + 8.7 + 31 + 14 = 57.8
Total silver equiv. reserves = 57.8 mil oz.
$707 mil MC / 57.8 mil "oz." = $12.23/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. Annualized, that's $24.8
million for the year, which gives a P/E ratio of
$707 mil MC / $24.8 mil = 28.5,
which indicates
to me that HL is still 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.
HL is not going to buy silver
bullion with their cash anytime soon.
One of Vicki's counter 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 47
million ounces, not the 500 million ounes annually produced. The
available silver is valued, at $6/oz., at $280 million. HL could
issue 1/4 to 1/3 more stock than they already have outstanding, and use
the proceeds to buy perhaps $250 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)
@ $3.35/share Cdn x .73 US/Cdn = $2.45 US
$128 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"
$128 mil MC / 185 mil oz. = $.69/oz.
You have an "exploration potential target" of 8.6 ounces
in the ground for 1 oz. silver's worth of stock.
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."
SPM.V SMNPF.PK (SCORPIO MINING) http://www.scorpiomining.com
52.2 mil shares fully diluted April 2004 (after recent $16 million Cdn private placement)
@ $2.02/share Cdn x .73 US/Cdn = $1.47 US
$77 mil MC
CDU.V CUEAF.PK (CARDERO RSCS) http://www.cardero.com/ hvanalphen@cardero.com
Henk Van Alphen -- President (604) 408-7488
32 million shares fully diluted Dec. 11th , 2003
@ $2.65/share Cdn x .73 US/Cdn = $1.93 US
$62 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."
I spoke with Henk in Vancouver about
those iron properties, and I spoke with an expert on iron. I had
previously read
that iron had doubled. The story that I heard was that iron was
selling for about
$23/ton, but it has recently increased to as high as $150/ton in some
futures contracts. That's
a huge move. However, iron may be selling for about $50/ton at
present, with perhaps a prior spike to $100. I really don't know where
to go yet to verify that price info. Further, I heard that some
of the most profitable and largest mines in
the world are iron mines. Although my main investing
interest remains in silver, I am aware that mine construction will
require both energy, and yes, iron for the mills, the tracks, the
carts, the heavy machinery, the tractors, trailers, dozers and trucks!
AOT.V
ASOLF.PK (ASCOT RSCS) http://www.bmts.bc.ca/aot/
1 604 684 8950
39.7 fully diluted. (Nov 2003)
@ $.30/share Cdn x .73 US/Cdn = $.22 US
$9 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.)
(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/frhome.htm inform@formcap.com
604-682-6229
165 mil fully diluted, March 2004
@ $.465/share Cdn x .73 US/Cdn = $.34
$56 mil MC
(Recently completed $10 million financing)
Very large cobolt 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)
Cobolt 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 cobolt.
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 cobolt project needs more drilling, and with recent financing,
things look bright.
Formation capital will be re-starting the Sunshine Silver Refinery--expected in early June.
I own shares of FCO.TO
* OTMN.PK (O.T. MINING) (I own shares) http://www.otmining.com/ info@otmining.com
Jim Hess Tel: 514-935-2445
12.8 mil fully diluted (May 15, 2004)
@ $3.40/share
$43.5 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.
* MMGG.OB (METALLINE MINE) (I own
shares) http://www.metalin.com/site_map.html metalin@attglobal.net
Merlin Bingham 208-665-2002 21.6 mil shares fully diluted (April, 2004) (only 2 mil options and warrants)
@ $2.05/share US
$44 mil MC
$8 million cash in the till.
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.
Project ownership: MMGG terminated the buy-in agreement with
Penoles, who went into default, so MMGG now owns 100% of the project!
See http://biz.yahoo.com/bw/031203/35526_1.html
I believe this is very good for MMGG, since the Penoles agreement made
it more difficult to quantify the value the company. Now, it is easier
to value the company, and the existing shareholders will own more of the
project and profits. It is important to note thatMMGG took the initiative to terminate the agreement. Penoles
did not issue a statement indicating any intent to walk away. Penoles'
delay or indecision caused them to lose the rights to their buy-in option
agreement. Just like if you have an "in the money" option, it's a
mistake to let it expire.
(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
TVI.TO TVIPF.PK (TVI PACIFIC) http://www.tvipacific.com
Dianne (IR) Phone: (403) 265-4356 378 mil shares fully diluted (April 2004) + 22.8 mil in June 14 financing
400.5 mil shares fully diluted (June 14 2004)
@ $.155/share Cdn x .73 US/Cdn = $.11 US
$45 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!
MCAJF.PK (MACMIN LTD) http://www.macmin.com.au/
450 mil shares and options (Feb., 04)
@ $.08/share
$36 mil MC
"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.
Additional comments: 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."
IAU.V ITDXF.PK (INTREPID MINRLS) http://www.intrepidminerals.com/ scoates@intrepidminerals.com
Stephen Coates, Investor Relations (416) 368-4525 51 mil fully diluted (April, 2004) @ $.77/share Cdn x .73 US/Cdn = $.56 US
$29 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.
* NPG.V NVPGF.PK (NEVADA PAC GOLD) (I own
shares) http://www.nevadapacificgold.com/ dhottman@nevadapacificgold.com
(604) 646-0188 David Hottman
47.4 mil shares fully diluted (April 2004)
@ $.98/share Cdn x .73 US/Cdn = $.71 US
$34 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.
$34 mil MC / 200 mil oz. = $.17/oz.
$34 mil MC / 1000 mil oz. = $.034/oz.
The inverse: you "might" get 35 - 175 ounces in the ground for 1 oz.
silver.
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.
I own shares of NPG.V
MAI.V MNEAF.OB (MINERA ANDES) http://minandes.com/ ircanada@minandes.com
(604) 689-7017 Art Johnson
90 mil shares fully diluted (April, 2004)
@ $.42/share Cdn x .73 US/Cdn = $.31 US
$28 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.
Additional comments: Minera Andes plans to "fast track" to
production. Expecting $.17-$.18/share Cdn earnings/year, as of
April, 2004
About half is gold value, half is silver
value at 60:1. 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.
MAG.V MSLRF.PK (MAG SILVER) http://www.magsilver.com
28 mil fully diluted shares (Nov. 19, 2003)
@ $1.25/share Cdn x .73 US/Cdn = US $.91
$27 mil MC
--"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.
ECU.V ECUXF.PK (ECU SILVER MINI) http://www.ecu.qc.ca/indexen.html ecu@ecu.qc.ca
(819) 797-1210 103.3 mil fully diluted shares = (6 January 2003)
@ $.35/share Cdn x .73 US/Cdn = $.255
$26 mil MC
The shares of ECU.V recently stopped
trading recently. The exchange wanted them to update their website,
particularly their listing of resources and reserves. See ECU Silver Mining Inc. Clarifies and Retracts Previous Disclosure A new resource calculation is expected soon.
ECU.V is also exploring other gold properties.
* EDR.V EDRGF.PK
(ENDEAVOUR GOLD) (I own shares) http://www.edrgold.com/
Hugh Clarke, Investor Relations 1-877-685-9775 25.7 mil shares fully diluted (May 28th, 2004)
@ $1.30/share Cdn x .73 US/Cdn = $.95
$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 they 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
I own shares of EDR.V
PXI.V PNXPF.PK (Planet Exploration Inc.) http://www.planetexploration.info/mexico.asp
30.8 mil shares fully diluted (Jan. 2004)
@ .78/share Cdn x .73 US/Cdn = $.57
$18 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."
QTA.V QURAF.PK (QUATERRA RES) http://www.quaterraresources.com/
Jay Oness Toll Free: 1-888-456-1112
60.6 mil shares fully diluted
@ $.44/share Cdn x .73 US/Cdn = $.32 US
$19 mil MC
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)
NJMC.OB (NEW JERSEY MIN) http://www.newjerseymining.com/
Fred or Grant Brackebusch
minesystems@usamedia.tv
23.9 fully diluted Apr, '04 @ $.68/share US
$16.25 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.
BCM.V BCEKF.PK (BEAR CRK MINING) http://www.bearcreekmining.com/s/Home.asp
39.2 million shares fully diluted
@ $.45/share Cdn x .73 US/Cdn = $.33 US
$13 mil MC
--About 6 properties in Peru
* CBE.V CBEFF.PK (CABO MINING)(I
own shares) http://www.cabo.ca/ jav@cabo.ca
(604) 681-8899 John Versfelt, President
Fully diluted subtotal, including shares needed to acquire two drilling
companies, which is contingent upon a financing.
= 18,880,436 as of February 9th, 2004 (Post-Consolidated) not
including recent financing, which still needs approval by the exchange,
and when added, will increase the market cap by about $10-11 million or so?
@ $.91/share Cdn x .73 US/Cdn = $.67
$12 mil MC
Additional Comments: If
you want to see the company move forward with the approval of the most
recent financing, and the acquisition of the drilling companies, please
contact John Versfelt at jav@cabo.ca (604) 681 8899, to get the shareholder approval form, or you can download it from http://www.cabo.ca/
In the article, I highlight what I
feel is Cabo's most imporant asset: control of 60% of the mining camp
of Cobalt, Ontario. The "silver capital of Canada" produced
historically, over 500 million ounces of silver.
To learn more about the mining
camp town of Cobalt, there is a fascinating article detailing the
history of the silver camp at http://www.cobalt.ca/cobalt/history.htm
I own shares of CBE.V
DNI.V DMNKF.PK (DUMONT NICKEL) http://www.dumontnickel.com info@dumontnickel.com
(416) 595-1195 60 mil shares outstanding (April 15, 2004) does not include options and warrants.
@ $.24/share Cdn x .73 US/Cdn = $.175
$10.5 mil MC
Dumont still needs to raise and pay several million to clifton 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?".
EXN.V EXLLF.PK (EXCELLON RSCS) http://www.excellonresources.com
87 mil shares fully diluted (Jan 9, 2004 press release) @ $.18/share Cdn x .73 US/Cdn = $.13 US
$11 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.
* KG.V KDKGF.PK (KLONDIKE
GOLD) (I own shares)
http://www.klondikegoldcorp.com/
70 mil fully diluted (Nov. 2003)
@ $.195/share Cdn x .73 US/Cdn = $.14 US
5 year high .30
$10 mil MC
This company has many silver and gold properties. Dennis Fong is also involved with GNG.V, Golden Goliath.
Klondike has one silver property that could be producing within weeks.
(I own shares of KG.V)
SML.V SMLZF.PK (STEALTH MNRLS) http://www.stealthminerals.com
Email-Bill@McWilliam.com 604-306-0391 Bill McWilliam, Chief Executive
Officer
48 mil shares (August 31-
02)
@ $.29/share Cdn x .73 US/Cdn = $.21
$10 mil MC
EPZ.V ESPZF.PK (ESPERANZA SILVR) http://www.esperanzasilver.com/s/Home.asp
20 million shares fully diluted
@ $.80/share Cdn x .73 US/Cdn = US $.58
$12 mil MC
"Esperanza Silver Corporation is solely dedicated to the identification,
acquisition and exploration of new silver projects." Looking
for high grades. APM.V (Amerix Precious Metals Corp) formerly (NEW BULLET GP) www.amerixcorp.com
50 mil shares fully diluted (including 15 mil new PP) http://www.newbulletgroup.com/financial.htm
@ $.33/share Cdn x .73 US/Cdn = $.24 US
$12 mil MC APM.V has a gold deposit in Brazil that's bigger than the silver project
in Mexico. http://www.amerixcorp.com/mexico.htm
" If the deposit extends to considerable depth, as do many of the silver
deposits in the region, it is reasonable to assume a deposit of 300 million
ounces of silver."
Stroud Resources, JV partner, lists the deposit at 150-300 million
oz. http://www.newbulletgroup.com/April1820022.pdf
NBG.V partners with SDR.V
NBG.V to get a 50-70% interest.
50% x 150 mil oz.= 75 mil oz., 70% x 300 mil oz. = 210 mil
oz.
$12 mil MC / 75 mil oz. = .16 oz.
$12 mil MC / 210 mil oz. = .057 oz.
Exploration potential = 37 - 104 oz. per oz. worth of shares.
SDR.V SDURF.PK
(STROUD
RSCS) (There is no PK symbol
as yet) http://www.stroudresourcesltd.com/projects-santo.html gcoburn@stroudresourcesltd.com
Mr. George E. Coburn, President Tel: 416-362-4126 87.4 mil fully diluted shares (April, 2004)
@ $.205/share Cdn x .73 US/Cdn = $.15
$13 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.
$13 mil MC / 45 mil oz. =
$13 mil MC /150 mil oz. =
* CMA.V CRMXF.OB (Cream Minerals Ltd) (I own shares.) http://www.creamminerals.com/cream/main.htm http://www.langmining.com/cream-mx/
34.8 mil shares fully diluted (March 31, 2004)
@ $.39/share Cdn x .73 US/Cdn = $.28 US
$10 mil MC
from: http://www.langmining.com/cream-mx/companyProjects_Summary.html
Project B: Potential Target: 400m x 500m x 150m x 2.5 t/m3 = 75,000,000 tonnes
Say at: Au 0.480 g/t Ag 149.33 g/t
Silver only, that's (1 gram = .03215 troy oz.) 4.8 oz./t x 75 million
tonnes = 360 million oz. "exploration potential" in a low-grade deposit.
$10 mil MC / 360 mil oz. = $.03/oz. (exploration potential) --not a "resource"!!!
You may get 217 oz. of silver, per oz. of silver's worth of stock. (Compare to NPG.V)
Additional comments: Another silver property is the Kaslo.
"The Kaslo Silver Property encompasses the Keen Creek Silver Belt and is comprised of nine former high grade silver mines"...
CHMN.PK (CHESTER MINING) http://www.chestermining.com/
Bill Hoyt, 785-383-9246
"
2.3 million shares outstanding, positive working capital and no debt
"
@ $3.95/share US
$9 mil MC http://biz.yahoo.com/bw/031121/215141_1.html
Historic estimate: "defined Conjecture mineral reserves of 706,000
tons grading 11.8 ounces per ton (oz/t) silver"
--
the Conjecture Mine, with a lease-option agreement signed with Shoshone
Silver Mining Company
= 8.3 million ounces of silver (leased out) Since Chester will
be receiving royalties, it makes it harder for me to value this company.
GNG.V GGTHF.PK (GOLDEN GOLIATH) http://www.goldengoliath.com/
604-682-2950
32.4 mil shares fully diluted
@ $.28/share Cdn x .73 US/Cdn = $.20
$6 mil MC
Additional comments: Silver Explorer in Mexico in the the Sierra
Madre mountains: Uruachic.
Doing active drilling on their silver property, Las Bolas, "in a
month" (as of Oct. 7th). 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.
GPR.V GPRLF.PK (GREAT PANTHER RES) http://www.greatpanther.com
Robert Archer, President, & Kaare Foy CFO: 604 608 1766
25.4 mil shares fully diluted April 23, 2004
@ $.46/share Cdn x .73 US/Cdn = $.34
$9 mil MC
* KRE.V KREKF.PK (KENRICH ESKAY) (I own
shares) http://www.kenrich-eskay.com/
Toll-free 1-888-805-3940 or (604) 682-0557
about 20,413,341 shares, fully diluted (Late May, 2004)
@ $.57/share Cdn x .73 US/Cdn = $.42 US
$8.5 mil MC
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!
I own shares of KRE.V
MMG.V MMEEF.PK (MCMILLAN GOLD) http://www.macmillangold.com/
25.6 mil shares outstanding (3q 2003 report June, 2003)
@ $.34/share Cdn x .73 US/Cdn = $.25
$6 mil MC
EGD.V EGDMF.PK (ENERGOLD MINING) http://www.energold.com/s/Default.asp
Fred Davidson President (604) 681-9501 info@energold.com
16.8 million Fully Diluted (June 30, 2002)
@ $.59/share Cdn x .73 US/Cdn = $.43
$7 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.
LEG.V LEGCF.PK (LATEEGRA RSCS) http://www.lateegra.com
Michael Townsend, President Toll Free: 1-866-669-9377 Richard one of the IR guys.
38.7 fully diluted? (Jan 7, 2004)
@ $.165/share Cdn x .73 US/Cdn = $.12 US
$4.6 mil MC
see also Teuton Resources Corp (TUO.V)
* AUN.V AUNFF.PK (Aurcana Corp) (I own shares) http://www.aurcana.com/
CEO Ken Booth 604-331-9333 kbooth@aurcana.com
45 million shares (fully diluted) (March 2004)
@ $.135/share Cdn x .73 US/Cdn = $.09 US
$4 mil MC
Drilling to commence on high-grade, gold-silver targets. (in Mexico)
BGS.V BLDGF.PK (BALLAD GLD SLVR) http://www.balladnet.com
16.3 mil shares outstanding
(fully diluted?)
@ $.25/share Cdn x .73 US/Cdn = $.185 US
$3 mil MC
Bonanza grade "grab samples" in southern Argentina near IMA.
32 oz./T gold and 22 oz./T silver grab samples.
ASLM.PK (AMER SILVER MINI)
2.75 million shares issued
@ $.80/share
$2.2 mil MC
Claim between CDE and the old Sunshine mine.
JV with CDE subsidiary until 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
BBR.V BBRRF.PK (BRETT RES) http://www.bmts.bc.ca/bbr/
17.2 fully diluted
@ $.20/share Cdn x .73 US/Cdn = $.15
$2.5 mil MC
Silver projects:
Yukon --grab sample of 611 g/t Ag
Argentina --samples from 31 to 5640 g/t Ag
ROK.V ROCAF.PK (ROCA MINES INC) http://www.rocamines.com
14.3 mil fully diluted (July 15, 2003)
@ $.28/share Cdn x .73 US/Cdn = $.20
$2.9 mil MC
LSM.V LASCF.PK (Langis Silver & Cobalt Mining Co Ltd) no website Patrick Sheridan Jr. President and Secretary-Treasurer Phone: (416) 628-5936 Langis
has
11,565,890
issued
and
outstanding
common
shares. (not fully diluted)
@ $.20/share Cdn x .73 US/Cdn = $.15
$1.7 mil MC
CBP.V CPBMF.PK (CONS PAC BAY MIN) http://www.pacific-bay.com/
Guilford Brett, IR (604) 682-2421
9.2 mil shares outstanding
@ $.11/share Cdn x .73 US/Cdn = $.08
$.74 mil MC
--CBP.V is the smallest market cap silver stock that I know of. $740,000 Market Cap? It is truly a "penny stock".
-----------------------------------------------------------------
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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.
TBLC.PK (TIMBERLINE RES) Property in Montanna.
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)
Coeur d' Alene, Idaho
Mineral Mountain
Coeur d' Alene, Idaho
Metropolitan
Coeur d' Alene, Idaho
Independence Lead
Coeur d' Alene, Idaho
Silver Bowl http://www.silver-bowl.com/
Coeur d' Alene, Idaho
--working to get a new stock transfer company 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)
Metropolitain Mines Ltd (MEMLA.PK)
Silver Surprize Inc (SLSR.PK)
Standard Silver Corp (SDSI.PK)
Horn Silver Mines Co (HRNS.PK)
(801)-281-5656
EZM.V EZMCF.PK --removed, primarily a zinc/copper base metal miner, not silver.
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
Silver Valley Resources
United Mines
APNE
ALS
Royal Silver Mines (RSMI)
Bunker Hill ?
Nabob
New Era
Sidney
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.
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 17 silver stocks: 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.
