Silver at $7/oz. is about 300 times
cheaper
than historic norms lasting for 1000's of years. The amount of
silver in a silver dime was historically worth a day's wage, whether
100 years ago in the U.S. or whether it was a Roman denarius 2000 years
ago. At $7/oz., those same dimes are worth about 50
cents each, and you can buy about 300 silver dimes with a day's wage of
$150. So, if you invest $5000 to get a bag of silver at $7/oz.,
and if silver exceeds it's historic valuation, then a $5000 bag of
silver
would be worth about $1.5 million in today's money... that bag of
silver would include 10,000 silver dimes--and at a "dime a day", that's
enough silver dimes for 38 years, working
5 days a week.
The reason that silver is
cheap today is that no nation on earth is using silver as money.
The world uses broken paper promises, instead.
Monetary demand for silver started to end in the late 1800's, and
finally ended in
the late 1960's. Interestingly, starting with the end of World
War II, and the beginning of the electronic age, the trend has been to
consume, in industry & electronics, nearly all the silver ever
mined since the beginning of time; 7/10ths of an ounce of silver per
person, per year, in modern industrial nations. I estimate that
modern electronic life has consumed 36 billion out of 40 billion ounces
of silver mined since the world began.
Known, above-ground, refined silver may be limited to less than 300
million ounces. That's less than 1/20th of an ounce of accessable
silver per person on the planet. Including unknown stockpiles of
refined silver (perhaps up to 4 billion ounces such as unknown
quantities of silver jewelry in India), there is still probably less
than one ounce of silver per person on the planet.
Investors are beginning
to become
aware of the silver shortage, and thus, in 2002, Hecla mining (silver)
was the top performing stock on the NYSE. In 2003, silver stocks,
on average, were up 314%. Silver prices
peaked recently at $8.40/oz. in April 2004... Silver may reach
about $15-25/oz. in the next year. By the time paper money fails,
as it always does, I
believe silver prices will exceed historic norms of about an ounce of
silver for a day's wage,
due to the shortage that was caused by 60 years of industrial
consumption.
This report is the fruit of my work of
telling other investors about silver and silver stocks, and the
collective wisdom
of the feedback I get from my
readers... I don't always have time to respond to all emails, but
you can mail me, Jason Hommel, at j@silverstockreport.com
This report lists the market capitalizations for about 72 silver stocks. There are
about 28 silver stocks that
list reserves,
resources (and exploration potential) which I
calculate by using my "ounce in the ground" formula. There are
about 44
explorers. There are about 30
additional "silver" stocks with incomplete
information. This report goes
out now to over 15,000 investors.
Additions &
Changes
from
last week are in bold. Kitco
reports silver at $6.94/oz. as
of Friday, 1:34 PM West Coast, US, which
was used to calculate the following
figures. The CAN $ / US $ conversion factor is
.8189. I will use .82
for ease. At today's prices, it takes 61 oz. of silver to buy 1 oz. of
gold.
Summary list of Silver Stocks:
How to read the
table below:
It starts on the left with:
The Stock Symbol that works at Yahoo! Finance, then, the (Company name)
is in parenthesis, then / The
number that follows the company name, below, represents the company's
total
resources, divided by the market cap as denominated in silver; thus, it
is the number of silver ounces
"in ground" that you gain title to when you trade away one ounce of
silver to buy 1 oz. of silver's worth of stock. The number is
just one potential valuation method, in this case, a possible
expression of leverage that silver stocks can give you, the higher the
number, the better. / Next, I list the valuation price change
since last report (and stock
dilution, and resource changes,
if any) as "up" or "down" or "even". / Finally, there are
additional comments (EXPT is "exploration potential") Company names in bold have
summaries below with updated information since the last report.
Click on the name to see the summary below. This first list contains
the
companies with information about
reserves/resources/exploration
potential. The list is ordered/ranked based on the resource
picture. The most expensive (with the fewest silver resources
given their market cap) are listed first.
Next list: Exploration companies or producers with limited information
on resources. This list is in order (roughly) by market cap, the
highest market cap companies are listed first.
This next list has silver exploration companies with market caps under about $30 million
(Market cap = total number of shares
fully diluted, times the share price. It's what the company is
"worth" in the market place, given the stock price, and is one of the
important numbers I calculate each week in these lists.)
This next list has silver exploration companies with market caps under about $5 million dollars:
(The real "penny stocks" are those with the smallest market caps, not
the lowest share price!)
There are expanded profiles on each company, way
below. But
before I get to that, let me discuss my methodology, and the problems
with it.
See the number above, listed after each company in the first
list? That number represents the number of silver ounces in the
ground that you get when you buy an ounce of silver's worth of
stock. The number treats all reported ounces in the ground as
equal, however, they are NOT EQUAL. Some ounces in the ground are
more certain and others are more speculative. Some are higher
grades, some are lower grades. Some have been well drilled,
others have less drill results. They range from most certain to
least certain such as: "proven & probable reserves," and then,
"measured & indicated resources", and then, "inferred
resources." A reserve has
a feasibility study produced for it. A resource, does not.
According to 43-101 rules, a company
CANNOT add together their differently classified resources, nor can
they add resources to reserves. It is to be left up to the
investors to decide how to value the different resources of different
classifications. I value them here, as all the same. You
may choose to value things differently. For example, 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.
Here's the math on how I calculate that one number, used in the summary
table above. First, I get
a market cap by multiplying the fully diluted shares (which bullishly
assumes all options and warrants will be exercised and converted into
outstanding shares) by the share price in U.S. dollars. Next, I
divide that by the silver price, so the market cap is denominated in
terms of silver ounces. Then, I divide the ounces in the ground
by the market cap as denominated in silver. This produces the
single number of how many ounces of silver in the ground you are buying
when you give up one ounce of silver in your hand, for shares of stock,
instead. This way, you can not only compare silver stocks to each
other, you can compare them to silver directly. This also helps
people in other nations, using other currencies, to value these
companies.
This valuation does not include zinc, or copper, or lead, but
it does include gold at a 1:10 ratio of gold:silver.
I believe that the two most important
numbers that a silver mining company can report are the resources in
the ground, and the number of their fully diluted shares. Of course,
there is much more to a mining company than that, but without those
numbers, it is extremely difficult to even start an evaluation.
This report highlights those key numbers, where possible. If you
think those numbers are also important, please email the executives of
the mining companies you own, and ask them to make sure their numbers
are clearly published at their websites.
Problems with my methodology: My methodology assumes that the
more ounces in the ground, is, in theory, best, given that I expect
much higher silver prices. However, unless the price of silver
really moves much higher, my methodology may not be the best one.
If silver does really move up very high in value as compared to today,
then I expect my methodology to be one of the best predictors of rising
stock values, because more ounces in the ground mean more leverage to
rising silver prices. However, the companies with greater
leverage to the upside usually also tend to have greater leverage to
the downside, and thus, tend to be more volitile.
WARNING: There are many other factors to consider that may be more
important than the single number produced by my
methodology: A resource calculation number does not tell
you the entire picture about a company. The resource calculation number is
designed as a
starting place for further research. Other very important
considerations are as follows: How much existing mining
infrastructure is in place, and what will it cost to put an exploration
project into production? More infrastructure is better, and
higher start up costs are worse and will require further
dilution! How much cash does the comapany have on hand, and how
fast are they spending it? What is the management's attitude
towards money, silver, hedging, debt, and dilution? And how many ounces of silver are expected
to be produced, per year? This is why I
list "additional comments" in the company profiles, below.
I don't consider grade to be too important (although I list it when I
can), because I consider the cost to mine to be the more important
consideration. The "cost to mine" is determined in a feasibility
study, which is the last thing produced before trying to raise money
for final construction of a mine. And usually, they cannot even
count silver as a resource unless it is at least somewhat feasable to
mine at today's prices for silver. And this is why I count all
the ounces as the same. If a low grade ore can be mined more
cheaply, and if a higher grade ore costs more to extract, and if it has
to be somewhat economically feasible even at these low silver prices to
be counted, it balances out quite nicely.
My methodology is the natural result of my study of the silver market
and my religious views. To read about my religious views, see my
other web site,
bibleprophesy.org
There are two essays near the top of the page that explain why I
believe the entire world will return to using gold and silver as money
again before the end times. See Ezekiel 38. Also,
see my essay: Biblical
Guidelines for Managing your Money
See my June 18, 2004
article: I'm
insanely bullish on silver.
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):
This is the first full silver stock report since February.
---------------------
I was interviewed on Al Korelin's Radio show at the Vancouver show in
June, 2005: http://www.kereport.com/
Segment 18 –
Ski-racer-turned-precious-metals-analyst Jason Hommel got our attention
late in 2002, when he explained
the math behind his contention that gold could rise to $32,567 per
ounce. Jason has two websites: silverstockreport.com
and bibleprophesy.org. Today,
Jason tells us how the Bible supports
gold and silver as money, and why the world will ultimately reject
all fiat currencies. -------------------- Readers on my email list stand to
benefit tremendously from the increase of knowledge of silver stocks
that my readers have brought to my attention and are now on this
list. Other leading analysts seem to be in the dark about how
many
good silver junior exploration stocks exist with substantial,
well-defined, silver resources.
I have invested in one Moly Stock: Idaho General Mines http://www.idahogeneralmines.com/ 27.5 million shares fully diluted
(June 2005) About $30 million market cap.
The reason why I invested was that I was offered shares in a PP at
$.40, while the stock was trading at about $.75/share.
Furthermore, Idaho General Mines is further along the process than many
others, with a completed feasibility study, showing they can produce
moly at about $3.50/lb., whereas prices for moly are up to about $35/lb.
Here is a brief letter I recently
received from Idaho General Mines.
Dear
Jason,
It was a pleasure speaking with you
yesterday. Idaho General appreciates and values your investment.
We welcome the opportunity to further our discussions with you
regarding IGM I and our world-class molybdenum project (Mount Hope)
that we just completed an extensive feasibility study on and are now
beginning with the permitting phase. Mount Hope is undisputedly
the world’s largest undeveloped high grade molybdenum deposit.
Mount Hope is the most economically deserving deposit worthy of being
put into production in the United States since the Henderson Mine came
on line in 1976.
Key Investment Highlights:
-- Mount Hope is economically robust
with exploration upside. -- Project is expected to have low operating
costs that can withstand metal price down cycles and generate
outstanding margins at mid and peak cycle prices. -- Idaho General expects to generate
additional value from other projects including Hall-Tonapah (Cu-Mo);
Margaret (Cu, Mo, Au) -- Idaho General has major mining company
expertise in a junior company. -- Idaho General is not known to the capital
markets, contributing to a substantial discount to net present value. -- Price Per Share: $1.10 (6/22/05) -- 52 Week Range: $0.05 - $1.75 -- Shares O/S (basic) 14.5 M; fully diluted
27.5 M -- Cash (5/31/05): $1.5 M -- Debt (5/31/05): $0.0 M -- Market Capitalization (basic) $15.9 M;
fully diluted $30.2 M
Key Mount Hope Metrics from
feasibility study includes:
-- Life of Mine Total Molybdenum Production:
700 M lbs. -- Molybdenum price assumption: $7.00/lb. -- Life of Mine cash operating cost: $3.40/lb. -- Initial Capex: $406MM -- IRR: very good at $7.00/lb -- Minable Tonnes: 300 M tonnes -- Ore Grade: 0.098% Mo; approx. 2 lbs.
Mo/tonnes milled -- Metallurgical Recovery: 91% -- Pit Life: 21 years -- Low Grade Stockpile Adds: 9 years with 134
M tonnes -- Total Processing Life: 30 years -- Throughput Rate: 40,000 tonnes/day -- Technical Grade Molybdenum (TMO) Produced
(20 yr average): 28.5 M lbs/yr -- High Quality Deposit with 225,000 ft of
drilling in 169 drilled holes -- Open Pit Mine: 2.75 to 1 stripping ratio
As you may know, the spot price for
molybdenum has increased a greater percentage than any other metal over
these past 24 months climbing from $5.00/lb to $39/lb. Global
demand for molybdenum from China, India, S. Korea, Japan, and the
United States is on the rise, and sets a challenge for the global
mining community as demand continues to out-strip production. The
increase in demand for molybdenum in the United States and Europe is
in-part being driven by the increasing uses and applications of
stainless steel, as well as, the development of space-age alloys.
In 2004, world production was estimated at 324 million pounds and world
consumption was estimated at 341 million pounds, a deficit of 17
million pounds. So, if demand continues at the accepted
consensus of 6% per annum, then who will fill this supply/demand
gap? We believe Idaho General Mines with our Mount Hope project
can help fill this gap.
Once you have had the time to review
this brief description of Mount Hope and would like to explore any
thoughts and ideas that might be mutually beneficial regarding this
investment opportunity please give me a call.
Sincerely,
Robert L. Dumont VP Business Strategies &
Development (509) 838-1213 rldumont@idahogeneralmines.com
"The CEO of Aquiline,
also a principal in other
mining ventures, has earned a reputation as something of a serial
litigant, and is currently involved in a separate mining lawsuit in
Australia."
However, the CEO of Aquiline, Mark
Henderson, emailed me, and I spoke with him on the phone, and in fact,
he is NOT involved in a separate mining lawsuit in Australia.
---------------------
Here's a tip. Call the smallest companies directly. If
you can put $20,000 to $100,000 into a single stock, and not let that
be more than
10% of your portfolio, you generally don't need to wait for the company
to "offer" a private placement deal. You can sometimes get them
to create a PP
deal for you, personally. Just call them up, find out as much as
you can about the company's plans, and if you like the deal, then tell
them you
want to buy $100,000 worth of stock in a private
placement.
-----------------------------
It has really been bothering me that I use Federal Reserve notes.
I've been thinking of them as "unjust weights and measures." And
what bothers me most is that the Bible says that we ought not to have
an unjust weight and measure in our house or purse!
But perhaps "unjust weight and measure" is an inaccurate description of
paper dollars? I suppose the word
"dollar" was originally defined as a measure and weight of gold or
silver, as
based on the definition of the word "dollar". But a paper dollar
is not, and never was, a weight and meausure of gold or silver! A
paper dollar was a promise
to deliver an amount of gold or silver, on
demand. Thus, a paper dollar is a promise of a measure, not the
measure itself. Further, the dollar today is also not a weight
nor measure, it is a promise, and specifically a broken promise.
Many people have said that they do not understand what I mean when I
say the dollar is an unjust weight and measure. Perhaps that's my
fault,
because a more accurate description of dollars is simply:
"broken promises".
--------------
How our monetary system, and the overvalued dollar, helps and hurts the
average guy...
How it helps:
1. Imports are cheaper, cheap things from Wal-Mart.
2. Extra paper money creates a "boom" of extra economic activity;
higher housing prices create a housing boom & more contruction
jobs. More investment dollars can create a "tech boom" as we saw
with internet stocks.
3. Government spending creates a "source" of new money into the
economy, and thus, jobs.
4. Booming housing prices allow people to refinance, at lower
rates.
5. Creates the opportunity to buy gold and silver very cheaply.
How it hurts:
1. Exports are relatively expensive, so we can't compete with
overseas, & we lose jobs.
2. All dollars are now vulnerable to losing 95% of value,
overnight.
3. The U.S. dollar is vulnerable to other nations selling dollars
for gold (China, or Japan).
4. Bankrupt companies who borrow money to stay alive make it hard
to compete. (GM & Ford)
5. Easy money leads to making bad investments; houses, stocks,
and bonds are all overvalued.
6. "Capital gains" on housing, stocks, bonds, are really no gain
at all, but a symptom of the inflation and devaluation of the dollar.
7. Those who have invested in gold and silver have lost much
since the peak in 1980.
What does it mean that there are position limits on longs in the silver
market?
Are limits evidence of shortages?
What causes shortages?
Does price fixing cause shortages?
Does a price that is too low cause shortages?
Does a free market price cause shortages, or plenty?
What are the position limits on longs, in silver, for one month? (1500
contracts for 5000 oz. each, or 7.5 million oz.)
What is a possible delivery limit on longs, in silver, for one month?
(1.5 million oz.)
What are the implications of those limits?
What is the average open interest in the COMEX paper silver market?
(100,000 contracts?)
How much larger is the open interest, in silver than the position
limits? (66 times!)
How many times larger is the open interest, in silver, than a possible
delivery limit? (333 times!)
How many times larger is the open interest, in silver, than what is
registered for delivery at the Comex? 500 mill oz. / 40 mil oz. =
12.5 times.
What would be the effect of unlimited and unrestricted naked short
selling in any futures market?
What would be required for a manipulation on the short side to
succeed?
Wouldn't position limits and delivery limits on the longs be required?
Would a price cap on gold and silver help to increase the value of the
U.S. dollar, and all paper currencies?
How much larger is the non-transparent "over the counter" market in
silver than COMEX silver?
What is the chance of default in silver in the paper futures markets on
COMEX?
What is required for a default of delivery of silver to occur?
Is a high price for silver a necessary precondition for default, or is
a lack of silver the cause of a default?
Why did a palladium default occur on the TOCOM in 2000?
What would happen after a delivery default in silver?
Would the end of redeemability of paper money for silver, such as
happened in the 1960's be like such a default?
What happened to the price of gold and silver after 1971, after the
default on redeemine U.S. dollars for gold at $35/oz.?
Which generally comes first, a major price rise, or a delivery default?
Is it harder to get delivery before or after a major delivery default?
If the futures markets have been used since 1980 to contain the price
of silver and gold, what will happen to the prices of gold and silver
if the futures markets blow up?
What would happen if 1% of the value of M3 were to buy gold and silver
within one year?
What would happen if 1% of the value of the bond market were to buy
gold and silver within one year?
What would happen if 1% of CalPERS (The California Public Employees'
Retirement System) (Calpers has $190 billion as of July, 2005) were to
buy gold and silver within one year?
What would the price of silver soar to, if California started to issue
silver coins as payment to California State employees?
----------------------
If you want to know where my money is, what stocks I own,
and in what proportion, please sign up at silverstockreport.com to
the "look at my portfolio".
For all goldismoney.com subscribers, please send a copy of your receipt
(or a past copy of the "look at my portfolio") to support@silverstockreport.com
Only support@silverstockreport.com can issue you passwords. I
cannot. Prior customers can also get a quick copy of the
latest report if you email your receipt, (or a past copy of the "look
at my portfolio") to me here: j@silverstockreport.com
(Neither I, nor my new support staff, has access to the prior
goldismoney customer database, so please send your prior email
recepts, or a past issue.) ------------------------
----------------
To read about my religious views, see my other web site, bibleprophesy.org
There are two essays near the top of the page that explain why I
believe the entire world will return to using gold and silver as money
again before the end times. See Ezekiel 38. Also,
see my essay: Biblical
Guidelines for Managing your Money
----------------
Because I have a market reach, I also
receive a lot of tips about
silver stocks. And thus, I believe I may have invested in some of
the best
ones that came my way. If you believe I may have an edge based on
my work and unique position... then the best way for me to share this
with you
is to is tell you more precisely where I put my money. It's not
investment
advice. I offer a monthly "look at my portfolio". I
do not issue recommendations, and I don't
list number of shares or the size of my portfolio, but I will show
the top investments in my portfolio, by rank, updated monthly.
It includes which stocks are 9% and more of my portfolio, those between
9% and 6%, under 6%, under 3%, and under 1%. To order, visit: silverstockreport.com
Price: Monthly rebilling at $39.95. --most convenient, best customer
service
Customer Service: http://www.silverstockreport.com/customerservice.htm
Toll Free Customer Service Hotline: 800-370-4154
-------------------
2 Silver Stock Funds
1. Richard Greene, thundercapital.com
$100,000 minimum, 2 year hold, sophisticated/accredited investors
only. Will use margin, and/or short sell.
2. Philip Judge or Simon Heapes, anglofareast.com Less
than $5000 minimum? No margin or shortselling.
------------------- General
Commentary on Silver
(slightly modified from last report):
There are several
companies
that are increasingly deciding to hold their cash in the form of silver
bullion. These companies are:
FSR.TO (First Silver Reserve)
SSRI SSO.V (SILVER STANDARD RSC)
SRLM.PK (STERLING MINING)
EDR.V EDRGF.PK (ENDEAVOUR SILVER)
------------------
The Silver Valley in Idaho is bringing back the
use of silver as money. A silver one-ounce coin, a "Sterling" to
be used as a $10 piece. http://shoshonenewspress.com/index.asp?Sec=News&str=2869
------------------
For news on the New Hampshire Sound Money Bill, that proposes to use U.S. Treasury
minted Silver Eagles and Gold Eagles as money see: http://www.goldmoneybill.org/
--------------------------
There are two excellent annual silver surveys that are sponsored by
industry.
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.
--------------------------
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
----------------------------
My 2005-2010 price predictions for gold and silver:
2005: $595/oz. gold, 50:1 ratio = $12/oz. silver
2006: $1011/oz. gold, 30:1 ratio = $34/oz. silver
2007: $1719/oz. gold, 10:1 ratio = $172/oz. silver
2008: $2923/oz. gold, 5:1 ratio = $ 585/oz. silver
2009: $4,969/oz. gold, 1:1 ratio = $4969/oz. silver
2010: $8448/oz. gold, 5:1 ratio = $1698/oz. silver
2011+: infinity dollars/oz. gold, infinity dollars/oz. silver.
I just moved up the years, one each from last year. The reason
why I'm so bullish is the scarcity of silver, and also, I believe one
single billionaire could move the price, at any time, to $25/oz.
It would be folly of me to suggest that 2005 should see an average of
$8-10/oz. for silver. It could fly high, starting at any time.
I calculate the gold price rise by guessing that by 2010, 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.
Ted correctly points out that a lower price creates excessive demand
from consumers. However, Ted Butler does not point out, and
neglects to mention, that a perpetually low price also creates lack of
demand from investors who are "trend investors".
I think most silver experts over-analyze all the supply and demand
factors of the silver market. No factor is more important than
monetary demand. The force of photographic demand is like a light
breeze compared to the
hurricane or tornado of monetary demand. Monetary demand is
everything.
----------------------------
Consider the gold market for a
moment: Even short selling at the COMEX is nothing compared to
monetary demand. The short position most certainly helps to
depress the price of gold as
the short position is growing larger. However, it adds fuel to
the
fire if there is short covering, and thus, it can boost the gold price
later. But the commercial short position on the COMEX is next to
nothing compared to the non-reported "over the counter" trading that is
done that does not appear on the COMEX.
(Numbers in metric tonnes, 32,152 oz. per tonne.)
870 tonnes -- the paper position at the COMEX, 280,000 contracts for
100 oz. each.
5,000 tonnes -- the official number admitted that the central banks
have sold.
15,000 tonnes -- the number GATA research shows that central banks have
sold / or leased.
30,000 tonnes -- the number of official central bank gold, minus either
the 5000 or 15,000 tonnes.
145,000 tonnes -- all the gold mined in the history of the world.
2,600 tonnes -- annual mine supply
4,000 tonnes -- annual demand
And all of that is nothing compared to the amount of dollars out there
that exist that could buy gold. $20 trillion bonds, $9 trillion M3 =
$29 Trillion. A mere 1% is $290 Billion, which, at $500 /oz. is a massive demand of
18,039 tonnes. Do you understand what that means?
That means that far,
far less than 1% of dollars, in either bonds or M3 can buy gold,
because
there simply is not that much gold available.
Long before 1% of U.S. paper dollars tries to buy gold, gold
will be going up well over $1000/oz., and silver will be headed up over
$50/oz.
----------------------------
To scare away investors--that is the entire reason gold and silver
are manipulated in the first place. Only the trend investors can
be
deceived. The problem is that nearly everyone is a trend
investor. Very few investors understand value. If people
knew the facts and used
their brains, the available above-ground refined silver would be gone
by
tomorrow, and the price would be well over $20-50/oz. But don't
trust
me, check the numbers and follow the links:
"The money chart"
1,000,000,000,000: 1 Trillion dollars
1,000,000,000: 1
Billion dollars
1,000,000: 1 Million dollars
$200,000,000,000,000: Estimated total derivative exposure of all banks
in the entire world. (20 x U.S. GDP)
$118,000,000,000,000: World Global Capital Markets (Stocks, Bonds,
&?) Feb 2005 McKinsey
Global Inst.
$75,000,000,000,000: U.S. Govt. unfunded liabilities; social security,
etc.
$46,000,000,000,000: Est. World Money supply 2004; from M2 &
GDP of EU, USA, Japan, & China (see SSR #56)
$45,153,000,000,000: U.S. Household
wealth,
as of first quarter, 2004. (Includes Real Estate, and investments)
$49,000,000,000,000:
World bond market, Fall 2004 PWL
Capital Inc.
$37,000,000,000,000: Total global
equity market capitalization June 2001 UN.ORG
$21,000,000,000,000: U.S. bond market, Sept, '03: IAPFtreas.gov $12,192,000,000,000: U.S. GDP,
2005 (1Q) http://www.bea.doc.gov/bea/dn/home/gdp.htm
$17,600,000,000,000: Total global market
capitalization of NYSE stocks, Sept. '04 http://nyse.com $9,700,000,000,000: M3
(money in U.S. banks) July
'05 http://tinyurl.com/vra0 $7,839,000,000,000: US
debt, 7-13-2005 http://www.publicdebt.treas.gov/opd/opdpenny.htm
$2,400,000,000,000: U.S. annual budget 2005
$1,860,000,000,000: World "official" gold mined in all of
history, 145,000 T (4.6 bil oz.) @ $400/oz.
http://tinyurl.com/vrcc
$450,000,000,000:
Estimated silver mined in all of history: 40-45 billion oz? @
$10/oz. http://snipurl.com/93j1
$754,000,000,000: Total U.S. paper currency
& coin in circulation, March 2005 http://www.fms.treas.gov/bulletin/index.html
$753,000,000,000: Annual U.S. current
account deficit (trade deficit) for 2005, (annualized
from 1 Q 2005).
$596,000,000,000: U.S. debt increase (true
deficit)
(Fiscal year '03-'04). http://www.publicdebt.treas.gov/opd/opdpenny.htm
$380,000,000,000: Market Cap of General
Electric (biggest U.S. company)
http://tinyurl.com/vrcn $291,000,000,000:
Debt of General Motors
(biggest U.S. car company) July 2005
$109,600,000,000: US gold, 261 mil oz., @
$420/oz. http://tinyurl.com/vsr9
$100,000,000,000: all the world's gold
stocks/equities (estimated?)
$75,000,000,000: Money flowed
into
Equity funds in the first quarter, 2004
$16,000,000,000: Market Cap of Newmont July
'05 (biggest gold company in the world)
$8,226,000,000: all the
world's
"primary" silver stocks (80 of them on this list, as of June 25, 2004)
--my own data. $3,500,000,000: 350 mil oz. of
"identifiable" silver bullion left in
the
entire world, according to GFMS @ $10/oz.
$288,000,000: 40 mil oz. of "registered"
COMEX silver bullion
(1-05-05) @ $7.5/oz. http://tinyurl.com/vrcw
$56,250,000: Limit 7.5 mil oz. of silver @ $7.5/oz. (limit of
1500 contracts per trader) at NYMEX
$11,250,000: Limit 1.5 mil oz. of silver @ $7.5/oz. potential 1
month delivery limit at NYMEX
$100,000: Limit of FDIC insurance per bank account.
$5,000: Limit of average cash withdrawl from small town banks,
without ordering cash in advance.
$300: Limit of average ATM daily withdrawl limit
So, what do all those stastistics mean? (Besides the fact that
real silver, and even paper money, is strictly limited?)
The numbers above are the real
fundamentals of the silver and gold markets. Silver and gold are
money. To study the potential demand for real money, we need to
know how much paper money that exists that could, one day, show up as
demand
for real money.
Note how General Motors has borrowed $290 billion, which is several
times more than the value of the U.S. official gold hoard at $109
billion. How did General Motors borrow more value in paper money
than the entire U.S. has in real money?
Note how the annual budget of the U.S. government, at $2.4 trillion, is
greater than the value of all the gold ever mined in the history of the
world, at $1.8 trillion.
Note how the value of the world bond market, at $49 trillion, far
exceeds the value of the gold in the world, at just under $2
trillion. Bonds are an investment type that directly competes
with gold, and rather poorly in the last few years. Bonds pay
1-5% these days, while gold has gone up from $250/oz. to $450/oz., a
gain of 80% since 2001.
Note how extremely tiny is the silver market, relative to the tiny gold
market, relative to the money and bond markets.
Now, a popular myth is that there is not enough gold and silver to do
the work of money. However, that is not true. If gold and
silver are valuable enough, there is always enough gold and silver to
act as money.
So, how valuable do you think gold and silver will get, when people
start to sell overvalued stocks and bonds for real money, gold and
silver, which are the only real alternatives to protect themselves from
bankruptcies of companies like GM, from bankruptcies of big
banks, and from the continued inflation?
See, the value of bonds will go down, as interest rates must
rise. Interest rates must rise to match the capital gains that
exist in the gold market--to get people back into bonds. But gold
is rising, what, 40% per year? Imagine 50% interest rates in the
bond market to draw people back to bonds! GM will soon not be
able to refinance their $300 billion in debt. Imagine the capital
destruction in the values of the bond market as interest rates rise,
and as bond values move inverse to that from all the selling in the
bond market.
The $49 trillion in the bond market MUST flow into the gold and silver
markets as this process of debt destruction continues.
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 about 60
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 60 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 60 x
10, You will see that bonds and currency are overvalued relative
to select silver stocks by a factor of 154,800 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 154,800 times more than
they are worth today. By that time, you should
definitely sell the silver stocks, and buy gold.
Can silver stocks really appreciate so much? Is there historical
evidence for such a crazy thing? Yes.
See http://www.sterlingmining.com/old.html
Excerpt:
"CDE rose from penny stock status (.02 in 1967) to an NYSE-listed, $60
per share stock in 1980. In fact, the average share on the Spokane
Stock Exchange rose in value nearly 16000% (yes, sixteen THOUSAND
percent), as America
could not get enough of silver and silver stocks."
CDE rose by a factor of 3000, or 300,000%, and by 1980, the metals boom
was stopped short, and paper money's death was postponed. If
paper money dies a death that lasts a generation world-wide, then even
greater gains
should have been expected.
For this reason, a wise silver stock investor should NEVER sell silver
stocks for paper cash. A wise silver stock investor who looks for
value would never sell a fairly valued silver stock for an overvalued
silver stock that traded for hundreds of thousands of times more value
than it should
be. Likewise, there is no excuse for a silver stock investor to
have
any cash or money market or bonds in his portfolio for any reasonable
length
of time, except for when selling one silver stock to raise the cash for
another
silver stock, or for when you need to raise the cash to buy silver, or
a
private placement in another silver stock.
So, if you want some fairly liquid alternatives to cash, in case you
don't know what other silver stocks to buy at the time, here they are:
1. Buy silver. You can hold silver in an IRA.
2. Buy CEF. Central Fund of Canada, ticker symbol
CEF. It's gold/silver bullion fund. It has 50 oz. of silver
for every
1 oz. of gold. The fund is fairly liquid, you can buy it as
easily
as any other stock, and is a good cash substitute. Unfortunately,
given the current ratio, about 55% or more of the value is in gold.
3. Buy a fairly large cap silver stock, with fairly large volume,
that is stilll fairly cheap on the list. Canadian
Zinc, Sterling Mining, IMA Resources, and perhaps Mines Management and
Cardero are probably the best five
candidates. These all have market caps ranging close to $50-$100
million dollars or more, and are more liquid than many others. (I
used to recommend PAAS and SSRI for this kind of "liquid alternative",
but they are no longer as cheap, and the others have now
increased in liquidity, and are now much more suitable for this kind of
trading.)
----------------------------
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 three to
four
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: "60 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 60 times
better. Currently, the ratio is 60
ounces
of silver can buy one ounce of gold or 60:1.
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.
To track the ticker
symbols of the 72+ stocks on this list at yahoo: (Updated on July
12th, 2005)
TO TRACK THE STOCKS ON THIS LIST: Click on yahoo finance.
Take a minute to register. Sign in. At the top of the page,
click "create" a portfolio. Choose "track your current
holdings". In the large box, copy and paste the following symbols
(Use your mouse to highlight the text below, then use control-C to
copy,
control-V to paste).
A good web site that hosts posting boards for many of the smaller
canadian stocks (that Yahoo! finance does not have boards for) is stockhouse.com
Click on "Bullboards". ----------------------------
This is a list of primary silver stocks.
I count a company's ounces of gold as 10 oz of silver. Why? Because
I have a very strong positive bias in favor of silver over gold.
Given my bias in favor of much, much higher silver prices, then, to
me, the grades of silver are far less important than buying more oz. in
the ground. More oz. in the ground at a lower cost is the most
important consideration for me.
My method is simple. Cost per ounce in the ground. How much do you get
(silver reserve totals), and how much does it cost (market cap)? The
cost is the market cap divided by the silver reserve totals. Cheaper is
better. Buy low, sell high.
Disclaimers, Warnings, and Advice: I have
gathered the information
below over the course of several months. I believe it is accurate to
the best
of my ability. I have made mistakes in the data from time to time. I'm
human. I have
collected the information from public sources such as company web sites
and public information found at yahoo.com to get the stock prices. This
report
in no way guarantees the accuracy of the information below, since the
information may change at any time. The number of outstanding shares
can change as a
company engages in new share issues to raise more capital through
private
placements, or if outstanding warrants (and options) are exercised and
converted
into shares, or if shares are bought back. Shares can be consolidated,
or split. The number of ounces of silver in the ground can also change,
as
these are often only estimates. The number can also change up or down,
depending
on drilling results.
This report is not investment advice. This report contains
information that may or may not be up to date, and may be
inaccurate. I urge
you to contact the company and do your own research to verify the
information contained in this report.
This report is not an offer to buy or sell any securities. I am
not a broker. Only your broker can buy or sell securities for you.
I urge you to consult with your investment advisor to determine whether
these kinds of investments are right for you.
I also caution you to be aware of your investment advisor's advice,
they are sometimes paid to push things like mutual funds, bonds and
other
securities that may not be in your best interest to buy. Some
investment
houses are short physical metal, and thus, they may attempt to strongly
discourage you from buying precious metal or precious metals
investments.
I believe that the propaganda machine in support of frauds such as
bonds
and the dollar is so strong, that they may even believe what they say
when
they give bad advice to avoid the safety and protection of precious
metals.
It is most likely that they simply do not understand the precious
metals
market as well as you do.
All total estimates of "ounces in the ground" can vary widely. There
are "proven and probable reserves" which are the highest category of
certainty which is obtained through many drill holes, and then at the
least accurate, there are "inferred resources" which are hardest to
estimate. Additionally, every miner always has "more silver properties
that need to be explored, which probably contain more silver". For the
purposes of this report, I
have added all those numbers together. It is believed that all these
"ounce
in the ground" estimates can be profitably mined at $5-6 per ounce
silver,
or lower. Thus, I believe that when silver trades for $15/oz. or above,
that all of these ounces can be mined at a substantial profit.
I may be wrong. (I
probably make mistakes in every article, and there
have been updates and corrections made each week, especially as prices
change.)
Mining is a risky business.
You need to be willing to sustain a total
loss of your investment for various unforeseen accidents. Silver stock
companies can do stupid things to shareholders such as take on debt, or
issue more stock at too low prices which reduces the percentage of the
company
you may own (dilution). Yet, they need to issue shares to raise capital
for drilling, and then an even bigger dilution to build a working mine.
They may sell YOUR silver too cheaply, or worse, hedge the price of
YOUR
silver just as it begins to go up if they lock in a price which then
proves
to be too low if the dollar is destroyed. Mining is a risky business as
estimates of assets in the ground can change. There is political risk
and
environmental risk. They can't franchise the business, are stuck in one
location, are subject to government confiscation, or taxes, or union
wage
negotiations, and corporate looting.
Do your own research.
Be responsible for your own investment
decisions. Again, please, before investing in a mining company,
call up the company, and speak either with the CEO or the Investor
Relations contact person.
Contact the company.
Check the company web site, read the annual
reports, check my numbers, check my math, and email the company. That's
what they are there for, to answer your questions, and to speak about
the opportunity of the company. Don't trust everything you read over
the internet. I am
a biased source. I own silver mining stocks. And I'm not a broker, nor
an
investment advisor. I'm just a private investor trying to make sense of
this crazy world, and sharing my information and thoughts on silver
companies.
Beware of scammers.
Surely, there are scammers in the mining industry in the past, and
there will be scammers in the future. Remember the fraud of
Bre-X. The new 43-101 compliance laws put in place after Bre-X
will not prevent
a "certified" geologist from lying if he feels lying will create a
better
payoff. The Bible warns, "trust no man", yet at the same time
advises
us to "cast our bread upon the waters", and to not issue "false
allegations"
against others. Physical gold and silver provide the "payment in
full"
as long as the coins or bars themselves are genuine and not fake.
This report may be copied, and transmitted by other people, and may
become outdated by the time it reaches you.
I can't tell you how you should invest your money, of course. The
reason is that I don't know how convinced you are of the silver bull
market, nor do I know how soon you will be needing the money back, so I
don't know
how long you can wait to see results, nor do I know how much liquidity
you need. Nor do I know the size of the money you have to invest. It is
very hard to invest large quantities of money in a small market cap
stock.
That being said, my investment strategy seems to be working for me,
so far. And so, here is how I have started an initial valuation process
of the following silver
companies
to guide my own investment decisions.
----------------------------
(Market cap is always converted to US dollars and denominated in US
dollars because I divide by ounces of silver, which are also
denominated
in dollars)
The Market Cap is the usual tool to
value a company. It is what the company "costs to buy" if you
could buy the entire company, all the shares, at the latest share
price. It is calculated by multiplying the share price, by the
total number of shares that the company has issued. In reality,
you could almost never buy an entire company at the price of the Market
Cap, but only a small portion. Usually, even small buying
pressure, such as trying to buy 1% of a company, can push up the price
of a stock by up to 10-50% higher. In my reports, I list Market
Cap in terms of millions of dollars as "$75 mil MC".
To calculate the Market Cap, I try to get and use the number of "fully
diluted shares". A company creates shares when they sell them to
investors in what are
called "private placements", or "initial public offerings" (IPO).
These
usually consist of shares and warrants, sold for cash that the company
will need to grow and expand.
The "outstanding shares" is the number of shares that exist out there
if you count them all, and it does not count the warrants, which are
like options. The investor can "exercise the warrants" which is a
right, but not an obligation, to buy more shares from the company at
the set price of the warrant.
If the company does well, and the stock price moves up, all the
warrants will be, or should be, exercised and converted into shares,
especially if they become
"in the money", and the warrants are significantly cheaper than the
stock price.
Now, "fully diluted shares" is the total number of shares, plus the
warrants, counting warrants as if they were all exercised and became
fully
trading shares. I think "fully diluted shares" is a better number
to
use to calculate market cap than by using "outstanding shares" as most
do.
Finally, I go beyond valuing a company
based on Market Cap alone; instead, I value a company by dividing the
Market Cap by the assets of the company, which are usually the silver
reserves in the ground. Thus, I can get a sense of what you are
getting for what you are paying. And then, I denominate the
whole thing in terms of silver, and not dollars, to get a more constant
measure.
----------------------------
(These first several companies below: --all look to be way too
expensive to buy for the silver exposure for
your portfolio. They are listed here, not because I want to cover
them, but because there are many investors who will bring them to my
attention and ask about them if I neglect to mention them.
BHP Billiton Ltd (BHP)
KGHM Polska Miedz
Grupo Mexico SA de CV (GMBXF.PK)
Compania de Minas Buenaventura SA (BVN)
ABX (Barrick)
IPOAF.PK (INDUSTL PENOLES)
HL (HECLA MINING CO)
SLW SLW.TO CHAP MERCANTILE INC (Silver Wheaton)
CDE (COEUR D'ALENE)
BHP Billiton Ltd (BHP) http://www.bhpbilliton.com/ web.queries@computershare.co.uk
IR
--'produces 40 mil oz. silver
annually from one mine' --the Cannington Silver Mine
Additional comments: unfortunately, BHP has a
84 Billion market cap, (June
2005), so we
can't buy BHP for the silver exposure. IE, $84 Billion / oh, say,
1000 million?????= $84/oz.
Dear BHP: By all means, keep mining the silver if you want the
silver exposure, and want to be in the silver business. But don't
sell the silver. Keep it. Let the profits of your entire
company
accrue as an increasing physical supply of physical silver. In
fact,
do as Buffett did, and buy more silver if you can. It would be
infinitely easier for you to buy silver from yourself than it would be
to buy 40 million ounces of silver from the COMEX, which, today, might
be impossible. KGHM Polska Miedz http://www.kghm.pl/en/index.php ir@kghm.pl
--KGHM is the world`s sixth-largest coppper producer and second or
third
in silver.
1163 tonnes of silver produced in 2001.
1163 x 32152oz.tonne = 37.4 million ounces of silver produced in 2001
--Copper/Silver mine in Poland.
--Market cap is about $1.52 billion.
Market cap / oz production = $41 per oz. of silver produced per year.
Grupo Mexico SA de CV (GMBXF.PK) http://www.gmexico.com/ http://www.gmexico.com/Html/contactUs.htm
651,646,640 shares (2002 annual report)
@ $4.00/share
$2606 mil MC
"Grupo Mexico ranks as the world's third largest copper producer
(copper at $1.24), fourth largest producer of silver and fifth largest
producer
of zinc."
They produced 28.2 million
oz. of silver, worth $129 million, in 2002. (P. 5, annual
report.)
Total value of produced metals: $2527 milllion. (but the company lost
money in 2002). They mainly produce copper, 900,000 tons worth
$1.5 billion in 2002. Thus, silver, at 2002 prices, is only 5%
of their production value. Silver is a by-product for
them, not a main product.
I don't have silver reserve figures, nor do I see any need to find them
or add them, since they are not a primary silver producer, and I don't
think anybody would be buying them for the "silver exposure".
If we assume 280 mil oz. of silver (ten years reserve for production),
then we stilll don't have anything exciting for the silver alone. $2085 mil MC / 280 =
$7.45/oz. cost.
Compania de Minas Buenaventura SA
(BVN) http://www.buenaventura.com/ dhuguet@buenaventura.com.pe
(IR)
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: 2.8
Billion market cap.
ABX (Barrick) http://www.barrick.com/ investor@barrick.com (IR) 533 million shares outstanding (June
2005)
@ $24.91/share
$13,290 million Market Cap
5.5 million oz. / year gold production.
--production hedged out for 2-3 years worth of total production, or
about
13.5 million oz. (2004 annual)
(most notorious hedger of the industry, the "leader")
--price of hedges vary, and were changed from fixed prices, to variable
& floating prices in 2004!
--reportedly, Barrick is trying to "unhedge".
--reportedly, they plan to deliver 1/3 of production to hedges, which
means they "might" be hedge free in about 10 years.
--the size of the hedge, 2004: 13.5
mil oz. gold, at $440/oz., would be valued at $5.9 billion
dollars.
--but they claim to be "debt free", and don't list hedged gold as a
liability on the balance sheet...
(only true if gold is not money)
--cash: $1,398 million (2004 annual) Silver Reserves & Resources
reported to be 997 million ounces! (2004 annual) Gold Resources 33 million oz. (2004
annual) (x 10 = 330 mil oz. silver equiv. Gold Reserves reported to be 89
million oz. (2004 annual) (x 10 = 860 mil oz. silver equiv. Totals: 997 + 330 + 860 = 2187 mil oz.
"silver equiv.")
$13,290 million Market Cap / 2187 mil oz. = $6.07/oz. silver
You may get "approx" 1.10
ounces in the ground for 1 oz.
silver's worth of stock... but up to 30 million oz. of silver may be
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.
Around the spring of 2003,
ABX made an announcement about covering 30 million ounces of silver
they sold short. Then, a large buyer showed up in the futures
contracts for about that amount.
1 Q 2004 note on hedging silver, p.
33: "At March 31, 2004, we had
fixed-price commitments to deliver 22.3 million ounces of silver over
periods primarily of up to 10 years. We also had written silver
call
options on a notional 7 million ounces of silver with an average
exercise price of $5.76 per ounce. These options expire at
various
dates in 2004 and 2005. The options are classified as non-hedge
derivatives for accounting purposes. Looks like they never closed
out the
silver hedge, but that they just bought options or
futures that expired.
I expect silver bullion to continue to outperform ABX
stock at these prices.
I don't really count Barrick as a silver company... (and neither do
they... they list sales of silver as "by-products" and "incidentals" in
the 2004 annual report. Let
me be abundantly clear. I primarily list Barrick because people
ask about it (because many novice precious metals investors own it) to
show how
poorly it compares to all the rest, and to help show how much better
the rest compare. This is a "comparative valuations" report,
after all.
IPOAF.PK
(INDUSTL PENOLES) http://www.penoles.com.mx
397.5 mil shares outstanding (2003 annual, unchanged since 2001)
@ $4.75/share
$1888 mil MC
419 proven and probable reserves of silver (from 2002 annual report
on web site)
$1888 mil MC / 419 oz. silver = $4.51/oz.
You get "approx" 1.57 ounces
in the ground for 1 oz. silver's worth of stock.
Additional comments: Industrias Penoles is the world's top
producer of refined silver. They actually derrive more revenue
from silver
than any other source. But they lost money in 2002.
Produced 21.5 mil oz. silver 1 Q 2004 (Net earnings of $342.5 million 1
Q 2004)
The word late Feb. 2004 from ECU Mini, who reported to
lemetropolecafe.com, is that Penoles hedged silver at low prices.
As reported at
lemetropolecafe.com, "We know the market is so tight even the world’s
largest silver producer, Mexico’s Penolas, wasn’t thrilled about
supplying 1 million ounces for a special project with ECU Silver, led
by their extremely able CEO Michel Roy."
From 2003 annual statement, by Dec 31,
2003, Penoles hedged 1.5 million ounces of silver at $5.31/oz.
That looks to be a bad bet, but easily coverable for Penoles.
They bought an option to sell (put) 17 million ounces of silver at
4.94. Another bad bet. Totally wasted money, it appears to
me. They also have an option to buy 8.5 million ounces (call) at
$5.53. Not bad. Such hedging practices, win or lose, make
it more difficult for investors to know and guess the current
operational state of the company. Who knows whether Penoles will
lock in more silver, and take away the upside potential profitability
for shareholders, or even waste money on put options that will never be
exercised.
Whether Penoles hedged an entire 2
years worth of production by Feb, 2004, I don't know, and remains to be
seen. Penoles also engages in hedging dollars in the foreign
exchane markets, further complicating matters.
77 million oz. silver refined by the metals division in 2003,
and
1 mil oz. gold.
They probably refine almost all the silver that comes out of Mexico.
They produce about 48 mil oz.
of silver from their mines 2003, and they have expansion plans.
I've heard this stock is tightly held, most is family owned.
Their oz. numbers are "proven & probable reserves", which is much
more certain than most of the others which are mostly "inferred and
indicated resources." They undoubtedly have "inferred and
indicated resources" in addition to the "proven & probable
reserves," I just could not find any info on that at the web site or in
the annual report. There
is no need for a Mexican company to comply with Canadian law,
43-101. When CDE recently complied with 43-101, they raised their
total numbers by about 30-50%?
Given the report in March, 2004, that Penoles has hedged silver for
two years, I expect silver bullion to continue to outperform IPOAF.PK
stock at these prices.
HL (HECLA MINING CO) http://hecla-mining.com/ hmc-info@hecla-mining.com
(208) 769-4100
118 mil shares outstanding (June 2005)
@ $4.15/share
$491 million Market Cap (MC)
no debt, cash: $81 mil (Dec. 31, 2004)
La Camorra gold mine, 563,000 oz gold.) (x 10 = 5.6 mil oz silver equiv.
San Sebastian silver mine, (proven & probable reserves) .4 mil
(down from 8)
Greens Creek silver mine (proven & probable reserves) 33 mil (HL
owns 30% of this, but the 31 mil oz. number reflects that percentage
ownership.)
the Lucky Friday mine (proven & probable reserves) 11 mil.
5.6 + .4 + 33 + 11 = 50 mil oz. proven & probable silver oz.
+ "Mineralized Material" Total Silver:
San Sebastian
Unit
.7 mil oz. silver
Lucky Friday Unit 48.3 mil oz. silver
Sub total 49 mil oz. silver
+ "Other Resources" Total Silver:
San Sebastian Hugh (2) 4.1 mil oz.
at 8 oz./ton
San Sebastian DS & F (3) .7 mil oz.
at 8.6 oz./ton
Lucky Friday Unit (4) 26.8 mil oz.
at 10.3 oz./ton
Greens Creek (29.73%) (5) 10.9 mil oz. at 14.0 oz./ton
Sub total: 42.5 mil oz.
Total silver equiv. reserves & resources = 141.5 mil oz. (Feb 2005)
$491 mil MC / 141.5 mil oz. = $3.48/oz.
Additional comments:
HL likely 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.
At the NY Gold show in June 2004, I spoke with Vicki Veltkamp, Hecla's
vice
president of investor and public affairs, and I listened to her 15
minute presentation on Hecla at the show. I felt that her
presentation honored my work, since she focused on the fact that Hecla
does not have substantial reportable reserves, due to the nature of
vein mining. She also emphasized that they already had detailed
plans for spending all of their available cash, of $123 million, which
implied that they had nothing left over to buy silver
bullion. Point: HL is not going to buy silver
bullion with their cash anytime soon.
One of Vicki's arguments was that HL only produces 9 million
ounces of silver, and that in a market that produces 500 million ounces
of silver a year, that withholding production would not significantly
move up the price. I think she's looking
at the wrong numbers. HL's market cap has recently ranged from
$600 million to up to $1,000 million. The remaining silver at the
COMEX, available for delivery in the registered category is only about
50
million ounces, not the 500 million ounes annually produced. The
available silver is valued, at $6/oz., at $300 million. HL could
issue 1/4 to 1/3 more stock than they already have outstanding, and use
the proceeds to buy perhaps $300 million worth of silver bullion, and
likely
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.
SLW SLW.TO (Silver Wheaton) http://www.silverwheaton.com
169 mil shares fully diluted.
178 mil oz. reserves & resources
@ $3.24/share
$548 mil MC / 178 mil oz. = $3.07/oz.
Operating cash flow est. at $7/oz. = $30.4 million.
Annual Silver Production, 2005 est: 9.8 million ounces.
CDE
(COEUR D'ALENE) http://www.coeur.com coeurir@coeur.com (208) 769-8155
or (800) 624-2824 240 mil shares outstanding (June 2005)
not fully diluted
@ $3.41/share
$818 mil MC
July 15th, 2004: Cour Presents Resources in Cdn 43-101 form: http://biz.yahoo.com/cnw/040715/id_coeur_d_alene_mine_1.html
Total of proven & probable reserves: 196 mil oz. silver (Feb 2005)
Total of measured, indicated, and
inferred resources: 76 mil oz. silver, 1.4 mil oz. gold.
Total silver equiv: 90 mil oz.
(43-101 reporting increased the number from 189
mil to 279 mil oz. silver). Before, Cour only reported reserves.
(Produced 14.2 mil oz. silver in latest fiscal year (early 2004)
$818 mil MC / 286 mil oz =
$2.86/oz.
You get "approx" 2.44 ounces
in the ground for 1 oz. silver's worth of stock.
Additional comments:
Beware of dilution!!! At the end of
1999, there were 30 million shares out. Today, there are 240
million.
I expect silver bullion to continue to outperform CDE
stock at these prices.
---------------------------------
The above list marks the end of the companies that I consider to be
"very expensive". I
don't
intend to make any further updates for perhaps the next year, unless
their stock prices fall dramatically, perhaps by over 50% to 75% in
many cases. Otherwise, I just don't see that re-evaluating those
expensive companies is worth my time.
---------------------------------
---------------------------------
GRS GAM.TO (GAMMON LAKE) http://www.gammonlake.com/ gammonl@sprint.ca
(902) 468-0614 83.5 mil shares fully diluted (April
30 2005)
+ 17 million special warrants
100 mil shares fully diluted (April 30, 2005)
@ $6.57/share
$657 mil MC Cash on hand of $75 mil Cdn April 2005
Total Ocampo "1.85-million gold ounces and 76.7-million silver ounces
in the
measured and indicated categories and a further 2.55-million gold
ounces and
127.8-million silver ounces in the inferred category."
Inferred: 2.55 mil oz. gold, 127.8 mil oz. silver
Silver equiv = 25.5 mil oz. + 128 mil oz. = 153.5 mil oz.
Measured & Indicated: 1.85 mil oz. gold, 77 mil oz. silver
silver equiv = 18.5 mil oz. + 77 mil oz. = 95.5 mil oz.
Total silver equiv: 249 mil
oz.
Ocampo
now has proven and probable RESERVES of 56 million oz. of silver, and
2.2 mil oz. gold. Reserves are a higher classification than resources,
and come from a bankable feasibility study.
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.
249 + 49 = 298 mil oz. (231 oz. in report #49)
$657 mil MC / 298 mil oz.= $2.20/oz.
You get "approx" 3.15 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".
"Overall, a total of 130,000-metres have been drilled in more
than 800 holes since the inception of the Gammon Lake Ocampo Project"
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.
FSR.TO FSLVF.PK (FIRST SILVER) http://www.firstsilver.com/ info@firstsilver.com (604)
602-9973 or (888) 377-6676 38.7 mil shares fully diluted (1 Q,
2005) @ $1.80/share Cdn x .82 US/Cdn = $1.48 US
$57 mil MC Cash on hand, 2005 1Q: $3 million Cdn.
From the Company's main page:
"As at December 31, 2001, First Silver's mineable reserves were 12
million ounces of silver and inferred resources totaled 30 million
ounces of silver. The mine is developing a 1000 plus meter exploration
drift to upgrade currently identified inferred resources to mineable
ore reserves and to discover new reserves." (12 + 30 = 42 mil oz.)
(The company appears to mine about 2
million ounces of silver per year, so perhaps by mid 2005, that would
be 7 million ounces mined out from reserves and resources?) 42 - 7 = 35
mil oz. (The company recently retracted these
"historical" estimates.)
First Silver owns 200,000 ounces of refined silver, preferring to hold
silver, rather than paper dollars!
12 + 30 = 42 mil oz.
$57 mil MC / 35 mil oz. = $1.63/oz.
You get "approx" 4.26 ounces
in the ground for 1 oz. silver's worth of stock.
Additional comments: --a high grade, producing miner.
The high grades, about
300g/ton, are a plus. They are also actively exploring,
another plus.
1st Q, 2005, profits were nil, due to
higher costs.
First Silver is unhedged, and remain committed to remaining unhedged.
PAAS (PAN AMERICAN SILVER) http://panamericansilver.com/ info@panamericansilver.com
(604) 684 -1175 72.3 mil shares fully diluted (Mar,
2005) from 1 Q 2005 report
@ $14.60/share
$1056 mil MC Cash in hand, 1 Q, 2005: $106 million
+ 2.7 mil oz. silver (payable) 10 silver properties (3 in production)
estimated to produce 15 million
ounces in 2005 Company lost $2.9 million 1 Q,
2005. The company
locked in prices for zinc and lead, and lost $6 million, unrealized,
marked to market at the end of the quarter. Reserves & Resources through Dec.
31th, 2004 from http://panamericansilver.com/operations/reserves_resources.htm
Proven & Probable: 147.5 mil oz. silver Measured & Indicated: 233.6 mil
oz. silver Inferred: 266.2 mil oz. silver 647 million oz. silver total.
$1056 mil MC / 647 mil oz. = $1.63/oz.
You get "approx" 4.25 ounces
in the ground for 1 oz. silver's worth of stock.
Additional Comments: Investors
can buy Pan American silver at just over the spot price, ranging from
$.70 (50-99 oz.) to as low as $.45 (5000 oz. minimum) over the spot
price through the Northwest Territorial Mint. See: http://www.silverpa.com/pricing.html
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!
PAAS LOST
MONEY, first quarter, 2005.
The reason silver investors are
investing in companies such as PAAS is for the upside potential of
rising silver prices, and the leverage that silver stocks offer. This leverage
did not exist, I suppose, as mining costs must have risen faster than
silver prices.
PAAS plans to produce 15 million
ounces of silver in 2005. Therefore, for every dollar the silver
price rises, (IF other
costs remain flat), PAAS expects to earn an
extra $15 million, perhaps a small number for the large market cap.
Doing the math on that, PAAS would need about an extra $100 million in
annual
profits to get to a "reasonable" P/E ratio of 10. This would
require the silver price to rise to $13.33/oz. Why? Becuase
by then, I would
expect the price of PAAS to be fairly valued at a market cap of about
$1000 million, with a P/E of about 10. In the meantime, however,
you
could invest in silver bullion, and double your money.
Therefore, I think silver bullion may outperform PAAS shares. On
the other hand, if stock buyers bid PAAS up so that it has a P/E of
about 20 by the time silver is $13.33/oz., (if that happens by next
year, and is actually a reasonable expectation for a major) then PAAS
and silver bullion may perform about the same.
Given that I expect silver and PAAS to
perform about the same from these prices, and given that stocks are
more risky, I would not buy PAAS even if they were to buy silver
bullion with spare cash. Yet, I advocate that PAAS buy silver
bullion. Why? Because it would help their
shareholders. To be abundantly clear, I support buying silver
properties as being a better investment than silver bullion at this
point. However, either silver bullion, or silver properties, are
better than paper money, which PAAS has been holding for over a year
now.
SIL (APEX SILVER) http://www.apexsilver.com/ information@apexsilver.com
(303) 839-5060 47.7 million shares outstanding (March
31, 2005) (not fully diluted?)
@ $13.47/share
$643 mil MC cash on hand: ~ over $500 million
San Cristobal (Bolivia) (proven & probably reserves) 454 mil silver
(The revised capital cost estimate amounted to $560 million)
(Produced zero silver in 2002)
7.8 billion pounds of zinc, and 2.9 billion pounds of lead
$643 mil MC / 454 mil oz = $1.42/oz.
You get "approx" 4.90 ounces
in the ground for 1 oz. silver's worth of stock.
Additional comments: @ $13.35/share, about 78% of the value (market
cap) of the company can be represented by the cash they have in
hand.
22%, or about $141 million, would then be
left over to represent the silver property. Perhaps there
is a
downside of 22%. However, if cash goes to zero value as silver
rises
in value, their "cash hoard" could evaporate!
See my silver stock report #40 for
reasons why Apex will not likely use their cash to buy silver bullion
while they wait for higher silver prices.
Apex silver primarily has institutional
investors.
"Apex has rights in some 100 mineral-exploration
holdings at 34
properties in countries such as Bolivia, El Salvador, Mexico, and Peru."
Apex has a lot of zinc. That's an added bonus that is not factored in
to my method of valuation.
Apex is not mining now,
but are waiting for higher silver prices. George Soros,
Billionaire, owns a bit of
this one, his group of funds owns over 14% I read recently. There
are several
other
zinc / silver plays on this list that investors might also consider:
Canadian Zinc, or Metalline
WTZ WTC.TO (WESTERN SILVER) (formerly Western Copper) http://www.westernsilvercorp.com info@westernsilvercorp.com
Jay Oness Toll Free: 1-888-456-1112
50.5 mil shares fully diluted (Dec 2004)
@ $8.27/share
$418 mil MC
(not actively mining, no debt)
$64 million Cdn cash raised in Dec. 2004 financing, in addition to $14
mil Cdn previously.
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
The total measured
and indicated sulfide resource at
Peñasquito, including the March 31, 2004 resource estimate at
the
nearby Chile Colorado deposit, now stands at 272.96 million tonnes,
containing 273.86 million ounces of silver, 3.61 million ounces of
gold, 1,779 million pounds of lead and 4,503 million pounds of zinc.
274 mil oz. silver + 36 mil oz. silver equiv (gold) = 310 mil oz.
+ 29 mil oz. of inferred silver oxide resource.
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.
$418 mil MC / 339 oz. = $1.23/oz.
$418 mil MC / 1000 oz. = $.42/oz. --exploration potential
You get "approx" 5.6 ounces
in the ground for 1 oz. silver's worth of stock.
Exploration Potential = 16
Additional comments: Western Silver has a large zinc
bonus, a copper bonus, and a gold bonus!
WTZ's
silver page: "Why
Silver?" While acknowleding the silver
fundamentals as produced by the Silver Institue, and shrinking
supplies, it says nothing about silver as money. WTZ acknowledges
their role is to make sure their shareholders are "well positioned to
take advantage of any shortage of supply or rise in the price of
silver."
Western Silver was formerly Western Copper... Copper now at $1.35/lb!
Note the capital cost to get the mining started: $148 million
dollars.
WTZ also has the following other metal resources:
4.5 billion pounds of zinc x $.58/lb = $2.61 billion
673 million pounds of copper x $1.30/lb = $874 million
1.3 billion pounds of lead x .40/lb = $520 million
CHD.V CHDSF.PK (CHARIOT
RESOURCES) http://www.chariotresources.com/ ullir@chariotresources.com 235 mil shares fully diluted Feb., 2005
@ $.245/share Cdn x .82 US/Cdn = $.20 US
$47 mil MC
Cello Ccasa (1 project of 4) Resource Estimate - August 2002
31.4 mil oz. silver, 134,000 oz. gold. (x 10 = 1.3) 32.7 mil oz.
(Stilll much exploration work to do.)
The Marcona Copper project is a large potential "copper bonus".
$47 mil MC / 32.7 mil oz. = $1.44/oz.
You get "approx" 4.8 ounces
in the ground for 1 oz. silver's worth of stock.
* CFTN.PK (CLIFTON MINING) (I own shares) http://www.cliftonmining.com/ clifton@cliftonmining.com
801-756-1414 (303) 642-0659 Ken Friedman
47 mil shares fully diluted (May 2004)
@ $1.18/share US
$55 mil MC
http://www.cliftonmining.com/wsreview.htm --source of 100
mil oz. resources est.
http://www.cliftonmining.com/resource.htm
From: http://www.siliconinvestor.com/stocktalk/subject.gsp?subjectid=13531
"A previous geologist has talked about a possible resource of
1 billion oz. of silver, and 5 million oz. of gold."
"It took management almost 30 years to obtain every patented claim in
this historic mine area, and to form them into one contiguous block of
claims. These claims were originally owned by as many as 100
surviving descendants of the original miners. "
100 mil oz. silver
+500,000 oz. gold x 10 = 5 mil oz. silver equiv.
= 105 mil oz. silver.
up to 1000 mil oz. silver "exploration potential".
Clifton has a complex JV agreement with
Dumont Nickel. (DNI.V DMNKF.PK)
- exploring Clifton Mining's
property 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"
$55 mil MC / 42 mil oz. = $1.32/oz.
$55 mil MC / 1000 mil oz. = $.055/oz.
You get "approx" 5.3 ounces in
the ground for 1 oz. silver.
Exploration Potential: 126
Additional comments: Goldseek.com is hosting a "Meet the CEO" session
with Dr. Friedman of
Clifton.
If readers would like to send him some questions (open until Aug. 23),
see:http://www.goldreview.com/MeetCEO/ask.php
Note the "exploration potential" is very
large, but it also assumes that their JV partner, Dumont, does not
acquire any interest in the property at all.
Perhaps an interesting and novel way
to determine percentage ownership of the projects would be to look at
the relative market caps for both Clifton, and Dumont, and then assume
that the market has it "about right", and then use thier relative
values to determine a possible percentage ownership of each. And
then, simply
decide to own both, keeping your percentage ownership of each company,
about the same. For
example, if the MC of Clifton is $43 mil, and Dumont is about $10 mil,
so own about 4.3 times as much Clifton as Dumont.
JV agreements were primarily entered into during a time when it was
difficult to raise money through share offerings, as a way to advance
the projects. Unfortunately, JV agreements also make it difficult
for investors to value a company! Several companies at the NY
Gold show
in June were just completing buyout agreements (or working on doing so)
with their JV partners.
For more info on what's going on with Clifton, see http://www.dumontnickel.com ,
JV partner. One man
suggested buying both Clifton and Dumont to ease the difficulty in
trying to figure out their JV agreement.
................
Clifton has 25% ownership of a biotech firm, ABL, that makes a
colloidal or nano
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. The product
cures malaria.
If you are a Shareholder of Clifton
Mining, you can call the company directly, and order the colloidal
silver from the company at a
substantial discount to the offer below. Shareholders can buy the
ASAP solution for $8/bottle, but you have to order a minimum of a full case of 50 bottles
at a time, for $400.
You can now order the colloidal silver
solution online, by the
bottle, at http://www.asapsolution.com
To receive 10% off, use 50105 as the coupon number.
Clifton announced a JV agreement with
General Resonance to help with their ASAP solution. Clifton gave
Congressional Testimony that really explains the incredible story
behind their ASAP product.
http://www.cliftonmining.com/congressionaltestimony.pdf
(I own shares of CFTN.PK)
PJO.V (PALMAREJO
GOLD CORP) http://www.palmarejogold.com/s/Home.asp Gerri Paxton (Ms.) 450-677-2054 gpaxton@pjogold.com 87.3 mil shares fully diluted (April
31, 2005) @ $2.21/share Cdn x .82 US/Cdn = $1.81 $158 mil MC cash on hand: $27 mil Cdn April 2005 In Mexico. Recent offering at $1/share. High grade, over 5 gram/ton gold. Bolnisi Gold, (Australia) owns 80% of
PJO.V The current value is approx 60% in
silver and 40% in gold. Inferred Resource as of Oct
2004: 126 mil oz. silver & 1.177 mil oz. gold. June, 2005: 3RC & 3DD rigs
currently exploring/developing the current resource. Silver equiv at 10:1 ratio = 138 mil
oz. silver. $158 mil MC / 138 mil oz. = $1.15/oz. You may get "approx" 6.05 ounces in
the
ground for 1 oz. silver's worth of stock. Exploration Potential: Open at strike
& depth.
MFN MFL.TO (MINEFINDERS) http://www.minefinders.com/ info@minefinders.com 39.8 mil shares fully diluted 1 Q 2005
@ $4.48/share
$178 mil MC Cash on hand, At March 31, 2005,
$38.67 million C$34 million
At 70:1 ratio, 3.5 mil oz. gold x 70 = 245 "silver equiv" of gold, and
160 mil of
silver = 405 mil oz. silver equiv. total.
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."
The Dolores project is an advanced
stage gold-silver resource, containing a measured and indicated
resource of 97.3 million tonnes at an average gold-equivalent grade of
1.54 grams per tonne: 2.75 million ounces of gold and 128 million
ounces of silver. Additional inferred resources of 650,000 ounces of
gold and 28 million ounces of silver have also been delineated.
$178 mil MC / 195 mil oz. = $.91/oz.
You get "approx" 7.59 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 that a significant gold bonus.
* SVL.V
STVZF.PK (SILVERCREST
MINES) (I own shares)
http://www.silvercrestmines.com/ info@silvercrestmines.com
(604) 691-1730
31.5 mil shares fully diluted (Jan 31, 2005) Principals’ Shareholdings are 27% of issued
@ $.65/share Cdn x .82 US/Cdn = $.53 US
$17 mil MC
$3 mil cash in the till. El Salvador - El
Zapote Project: Indicated and Inferred silver: 14.3 mil oz. silver
Guatemala - Concepcion Concession (pending): includes several
past producing silver mines. documented results of greater than
13,714 g/t silver -- a historical resource of 1.9 million tonnes
grading 86 g/t (2.5 opt) silver (4.75 mil oz., non- 43-101 compliant) Mexico - Silver Angel
Project-- a 100% interest in 10,300
hectares located in the northern Sierra Madre Range... with structural
features that host seven past producing, high grade silver-gold mines.
--currently exploring this project.
Totals: 14.3 + 4.75 = 19.05 mil oz.
+85 million pounds of zinc, indicated and inferred. I'm no longer counting resources in
Honduras, El Ocote & Opoteca, totalling 32 mil oz. silver.
The
Honduran government seems as if it is not respecting property rights of
foreign investors.
$17 mil MC / 19 mil oz. silver = $.88/oz.
You get "approx" 7.85 ounces
in the ground for 1 oz. silver's worth of stock.
Additional comments: PP: 3,100,000
units on Dec 8th, 2004 @ $.90 with 1/2 warrant @ $1.20 SilverCrest
Announces El Zapote Drill Results Wednesday October 13
including 10.5 oz/ton over 249 ft.
The two projects of current
focus are in Mexico and El Salvador, (nothing in Honduras at the
moment). The El Salvador project is
moving "full speed ahead". Depending on the study, hoping for
produciton perhaps
by Jan or July, 2006.
I own shares of SVL.V
SVM.V (Silvercorp
Metals Inc.) http://www.silvercorp.ca/
604-669-9397 info@sknresources.com 44.7 mil shares fully diluted
(May 10, 2005)
@ $2.72/share Cdn x .82 US/Cdn = $2.23
$100 mil MC Working Capital: $5.5 million
In China.
Up to 45 oz./ton!
Indicated 15 mil oz. silver,
Inferred 115 mil oz. silver (130 mil oz. total)
$100 mil MC / 130 mil oz.
silver
= $.77/oz.
You get "approx" 9.05 ounces
in the ground for 1 oz. silver's worth of stock.
Additional Comments: Silvercorp Metals
Inc. formerly SKN Res. Very high grade galena veins found in
China.
IAU.TO
ITDXF.PK (INTREPID
MINRLS)
http://www.intrepidminerals.com/ scoates@intrepidminerals.com
Stephen Coates, Investor Relations (416) 368-4525 49.4 mil shares fully diluted (June
15, 2005, extrapolated from 1Q, 2005, assuming warrants at .80 expired)
@ $.51/share Cdn x .82 US/Cdn = $.42 US
$21 mil MC $2.9 million cash, 1Q 2005
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 - 15 mil oz.
Argentina - 10 mil oz.
605,000 oz gold (240k in El Salvador, 365k in Argentina) At 10:1 ratio,
6 mil oz. silver equiv. Total: 30 mil oz. silver
Total: 30 mil oz. "silver equiv". (exploration potential or indicated
or inferred, not reserves)
$21 mil MC / 30 mil oz. = $.69/oz.
You may get "approx" 10.1
ounces of silver of 1 oz. of silver's worth of stock.
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.
SSRI SSO.V (SILVER STANDARD
RESOURCES)
http://www.silver-standard.com/ paull@silverstandard.com
(604) 689-3856 or (888) 338-0046 54.9
mil shares fullly diluted (Dec. 2004) --from annual report
@ $11.31/share
$621 mil MC
debt free, cash: $Cdn 36 mil plus 2 million ounces of silver, plus
securities. As of May 12: The
company has budgeted $8.2 million in 2004 for feasibility and scoping
studies and exploration of its 15 projects. With cash of $61
million, and marketable securities of approximately $10 million at
March 31, the
company
decided to invest approximately 20% of its cash and securities in
physical silver following the
decline in silver prices in April
and May. Silver Standard now owns over 1.95 million ounces of
silver. This silver is held on an allocated and segregated basis
and, consequently, is not available to be loaned. not mining or producing; 23 silver properties Resource summary from May, 2005
presentation Total Measured: 101.9 mil oz. silver,
270,000 oz. gold Total Indicated: 441.0 mil oz. silver,
585,000 oz. gold Total Inferred: 440.0 mil oz. silver,
1,389,000 oz. gold Grand Totals: 982.9 mil oz. silver +
2.24 mil oz. gold (x 10) = 1005 million oz. silver
$621 mil MC / 1005 mil oz. =
$.62/oz.
You get "approx" 11.2 ounces
in the ground for 1 oz. silver's worth of stock.
Additional comments:
Congradulations
to SSRI for converting some of their cash, 20%, to silver
bullion! I wish it was more, but it is certainly a great
start! SSRI decided to hold such a
large percentage of their cash in the form of bullion, first, of all
silver miners!
SSRI now has more silver resources than PAAS.
I continue to expect that SSRI's market cap will exceed that of PAAS.
SSRI really is the "silver standard". SSRI has the largest market
cap this far down the list, which makes it a more attractive target for
people with larger amounts of money to invest. SSRI continues to
add resources through drilling and acquisition. This company
seems to really understand the silver story, and helped to educate me
as an investor.
I attended a two hour SSRI presentation after the Gold show in SF in
late November, 2003. For the most part, their properties are very
well
drilled, and they have a fairly solid idea on how much silver oz. in
the ground they have. They started their plan to acquire silver
properties and become a "silver company" in about 1993, which explains
why they have such a large market cap, and so many good properties with
so many ounces of silver.
Some investors like SSRI because of the diversification --SSRI owns
many silver properties. You can get a similar kind of
diversification by owning stock in many silver companies.
FAN.TO FRLLF.PK (FARALLON
RESOURCES)
http://www.farallonresources.com/fan/Home.asp info@hdgold.com (800) 667 2114
(604) 684 6365 Melanee 138 mil shares fully diluted (May 31,
2005)
@ $.51/share Cdn x .82 US/Cdn = $.42 US
$58 mil MC $24 mil Cdn cash in the bank. Debt
free.
Exploration and development in Mexico.
Managed by Hunter-Dickinson http://www.hdgold.com
On 4 sulphide deposits out of 16, 29 mil tonnes of ore grading 89 grams
silver/t and 1.57 g gold/t.
Conversion: 89 grams x .03215 troy oz./gram
= 2.86 oz./t silver
RE: those 29 mil tons, they "anticipate increasing resources to 50
mil tonne range..."
2.86 oz./t silver x 29 mil tons = 83
mil oz. silver
1.5 mil oz. gold x 10 = 15 mil
oz "silver equiv".
Total: 98 mil oz. silver
equiv.
(Pre-Feasibility study expected late summer 2005)
(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.)
$58 mil MC /98mil oz. silver
equiv. = $.59/oz.
$58 mil MC / 167 mil oz.
silver equiv. = $.35/oz. --exploration potential
You get "approx" 11.8 ounces
in the ground for 1 oz. silver's worth of stock.
Exploration potential = 20
(No further financings expected,
company has money up until a construction decision.)
The new drill results contain much higher levels of zinc than
previous drilling, 4-8% compared to 2%.
The prior drilling was done in 1999... 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 last year. About 1/3 is in silver now.
At Feb 2005 metals prices, per ton:
2% x 2000 lb = 40 lbs zinc x $.61/lb = $24 for the zinc
3.14 oz. x $7.37 = $23 for the silver.
.055421 oz. x $425/oz. = $23 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.
SSRI SSO.V (SILVER STANDARD
RESOURCES)
http://www.silver-standard.com/ paull@silverstandard.com
(604) 689-3856 or (888) 338-0046 54.9
mil shares fullly diluted (Dec. 2004) --from annual report
@ $11.31/share
$621 mil MC
debt free, cash: $Cdn 36 mil plus 2 million ounces of silver, plus
securities. As of May 12: The
company has budgeted $8.2 million in 2004 for feasibility and scoping
studies and exploration of its 15 projects. With cash of $61
million, and marketable securities of approximately $10 million at
March 31, the
company
decided to invest approximately 20% of its cash and securities in
physical silver following the
decline in silver prices in April
and May. Silver Standard now owns over 1.95 million ounces of
silver. This silver is held on an allocated and segregated basis
and, consequently, is not available to be loaned. not mining or producing; 23 silver properties Resource summary from May, 2005
presentation Total Measured: 101.9 mil oz. silver,
270,000 oz. gold Total Indicated: 441.0 mil oz. silver,
585,000 oz. gold Total Inferred: 440.0 mil oz. silver,
1,389,000 oz. gold Grand Totals: 982.9 mil oz. silver +
2.24 mil oz. gold (x 10) = 1005 million oz. silver
$621 mil MC / 1005 mil oz. =
$.62/oz.
You get "approx" 11.2 ounces
in the ground for 1 oz. silver's worth of stock.
Additional comments:
Congradulations
to SSRI for converting some of their cash, 20%, to silver
bullion! I wish it was more, but it is certainly a great
start! SSRI decided to hold such a
large percentage of their cash in the form of bullion, first, of all
silver miners!
SSRI now has more silver resources than PAAS.
I continue to expect that SSRI's market cap will exceed that of PAAS.
SSRI really is the "silver standard". SSRI has the largest market
cap this far down the list, which makes it a more attractive target for
people with larger amounts of money to invest. SSRI continues to
add resources through drilling and acquisition. This company
seems to really understand the silver story, and helped to educate me
as an investor.
I attended a two hour SSRI presentation after the Gold show in SF in
late November, 2003. For the most part, their properties are very
well
drilled, and they have a fairly solid idea on how much silver oz. in
the ground they have. They started their plan to acquire silver
properties and become a "silver company" in about 1993, which explains
why they have such a large market cap, and so many good properties with
so many ounces of silver.
Some investors like SSRI because of the diversification --SSRI owns
many silver properties. You can get a similar kind of
diversification by owning stock in many silver companies.
FR.V FMJRF.PK (FIRST MAJESTIC) http://www.firstmajestic.com/s/Home.asp info@firstmajestic.com 28.4 mil shares fully diluted (June,
2005)
@ $1.85/share Cdn x .82 US/Cdn = $1.52
$43 mil MC Cash on hand: $4 mil May 2005 "First Majestic owns the La
Parrilla Silver Mine
located outside the city of Durango, Mexico. Silver production began in
July, 2004.
Production is running at 180 tonnes per day. Mine development and mill
improvements are underway to advance production to 500 tonnes per day.
First year production of over 1 million ounces of Silver is
anticipated."
First Majestic acquired the La Parrilla
Silver Mine in Mexico,
a former producing silver mine that
closed in 1999 due to low silver prices. Now re-opened, they
expect to produce 175,000 tonnes a year at 300g/t silver, which
means 1.8 mil oz. of silver produced per year. The cost to mine
is estimated at $25-30/tonne, and recovery is 85-90%. Cash
costs are expected to be $3/oz. Producing 1.8 mil oz. of silver
per year. 10 yr. mine life.
--First Majestic recently purchased the Dios Padre Silver Mine which
conservatively contains approximately 57 million ounces of 456 gpt
silver and appears amenable to open-pit mining. Preliminary work began
in January to define the parameters required to bring the Dios Padre
back in production as soon as possible.
--The Candamena Mining District was also recently acquired. This 5,215
hectare property hosts several highly mineralized areas. 1997 work
including 60 drill holes of over 11,500 meters provided an estimated
resource of 1 million ounces gold and 20 million ounces of silver
amenable to open pit mining. Two new acquisions:
1. Dios padre Silver Mine: historic, 2002, a US company proved up
60 mil oz. silver. 465 g/t--not
43101 compliant. Other historic, from 50 yrs ago, up to 200 mil
oz.? also 4-5% lead and 2% copper. Exploration potential: 300 mil
oz. silver --expect to upgrade production to
2000 tpd.
2. Candamina mining district. 1 mil oz. gold 20 mil oz.
silver..., --expect to upgrade production to 2000 tpd, also.
La Parrilla, 20 mil oz. + Dios Padre, 60 mil oz. + Candamena, 20 mil oz.
Exploration Potential: 340 mil oz. silver. $43 mil MC / 100 mil oz. = $.43/oz.
$43 mil MC / 340 mil oz. = $.13/oz.
You get "approx" 16.1 ounces
in the ground for 1 oz. silver's worth of stock.
Exploration potential may be 55
ounces
in the ground for 1 oz. silver's worth of stock.
Additional comments: The
company recently attempted a financing at $2.50/$2.15/share, which was
postponed.
In 2 years, by Dec 2006, First Majestic's
goal is to produce 10 mil oz. silver/year.
* CZN.TO
CZICF.PK
(CANADIAN
ZINC) (I own shares) http://www.canadianzinc.com/ czn@canadianzinc.com
1-866-688-2001 74 mil shares fully diluted (June 2005) @ $.43/share Cdn x .82 US/Cdn = $.35 US
$26 mil MC
$13 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! Their 18 year mine plan
consists of zone 3 only, but there are 12 mineralized zones on the
property.)
$26 mil MC / 70 mil oz. = $.37/oz.
You get "approx" 18.6 ounces
in the ground for 1 oz. silver's worth of stock.
Additional comments: CZN
recently cancelled a private placement at about $.65, when the stock
price dropped.
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. High Grade ores:
12% zinc/ton; = 240 lbs. zinc/ton x 61
cents/lb. = $146/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 $7.00/oz. =
$42/ton for the silver.
0.4% copper/ton = 8 lbs. copper/ton x 1.50
cents/lb. = $12/ton for the
copper.
Total: $282/ton! Prices accurate as of Mid Feb., 2005
With 11 million tons, CZN has about $3 billion worth of ore in the
ground, at least. 3. 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 major "zinc bonus", and "lead bonus".
4. Zinc and base metals prices headed up! Check http://www.metalprices.com/
for updates.
(I own shares of Canadian Zinc) ORM.V
OREXF.PK (OREMEX RESOURCES) http://www.oremex.com/s/Home.asp info@oremex.com 29.3 mil shares fully diluted (April
8, 2005) @ $.60/share Cdn x .82 US/Cdn = $.49 US
$14 mil MC
Have $5 million cash in the bank as of Dec. 2003.
holds the right to acquire a 100% interest in six mineral properties in
Mexico.
Oremex will focus on the exploration and development of the Tejamen Silver Property and the San
Lucas Silver Property.
They are hoping to explore for up to 100 mil oz. silver by drilling
over the next year.
--Experienced team of geologists and mannagement that have put other
properties into production:
Anthony R. Harvey, Chariman, has put 14 properties into production in
his 40 year career. http://web1.kitco.com/pr/1582/article_03082005131131.pdf March 8th, 2005: 39 mil oz. silver
"contained resource"
(43-101) at 4 oz./ton
$14 mil MC / 39 mil oz. = $.37/oz.
$14 mil MC / 100 mil oz. = $.14/oz. --exploration potential
You get "approx" 18.8 ounces
in the ground for 1 oz. silver's worth of stock.
Exploration Potential: 50
Additional comments: Oremex intersects 20 oz. of silver per tonne over 292 feet Wednesday September 8 Tejamen property in Mexico: Oremex reports exceptional high grade intercepts
36 ounces per tonne over 92 feet including 76 ounces per tonne over 39
feet. A mineral resource study is underway and expected to be
announced by the beginning of March 2005
GGC.V GGCRF.PK (GENCO
RESOURCES) http://www.gencoresources.com/ info@gencoresources.com
IR: Rob Blankstein: 604-682-2205, or
22.4 mil shares fully diluted (Feb 2005)
@ $.79/share Cdn x .82 US/Cdn = $.65
$15 mil MC
--Producer in Mexico. http://www.gencoresources.com/reserves.html
Inferred resources: 484g/t silver x .03215 = (15.5 oz/t) x 2.3 mil t =
35.8 mil oz. silver
2.00g/t gold x .03215 = 148,000 oz. gold x 10 = 1.5 mil oz. "silver
equiv"
385 x .03215 = ... x 95k = 1.2 mil oz silver
40+ mil oz. silver equiv. resources
2002 production, 500,000 oz. silver, 9000 oz. gold
$15 mil MC / 40 mil oz. silver = $.36/oz.
You get "approx" 19.1 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, 2004? by doubling both
the tonnage and the grade. Genco is also
aggressivly planning on making property acquisitions.
* IMR IMR.V
(IMA
EXPLORATION) (I own shares.) http://www.imaexploration.com/s/Home.asp info@imaexploration.com 50 mil shares fully diluted (April 15,
2005)
@ $2.40
$120 mil MC
Exploring in Argentina.
$4.5 million cash Silver
Resources Increase to Over 300 Million Ounces at IMA's Navidad Discovery
Thursday June 16 Indicated plus Inferred, from press
release above total 339 mil oz. silver
The full exploration
potential might be perhaps 1000 mil oz.
$120 mil MC / 339 mil oz. = $.35/oz
$120 mil MC / 1000 mil oz. = $.12/oz
You get "approx" 19.6 ounces
in the ground for 1 oz. silver's worth of stock.
Exploration potential may be 58
ounces
in the ground for 1 oz. silver's worth of stock.
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.
IMA had many other silver properties that they just spun off into
a
new company, Golden Arrow. For every 10 shares of IMA existing
shareholders got 1 share of Golden
Arrow. (See below)
(I own shares of IMR.V)
SHSH.PK (SHOSHONE SILVER) http://www.shoshone-mining.com
Carol Stephan, director, 208-666-4070
18 million outstanding shares @ $.18 US
$3 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.
http://www.chestermining.com/
Historic estimate: "Conjecture (in Lakeview) 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 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 in Yukon, Canada: 21.4 million tons grading 1.63 ounces
per ton (oz/t)
silver. (low grade) 35 mil oz. silver; + 1.3 billion pounds zinc, 1.2
billion pounds lead.
Now, 43-101 compliant! Resource
Estimate Completed on Shoshone Silver/ Eagle Plains' ''Blende''
Silver-Lead-Zinc Project Wednesday October 6
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? ...???... 60%
of 35
mil
oz. silver is 20.9 mil oz. that will cost an additional $5 million,
plus a million shares. At $.60/share, that's $5.6 million for
20.9 mil
oz. resource. That's$.34/oz.
acquisition cost to Shoshone for blende, which they don't own yet, just
an option.
Total: 8 mil oz. silver, plus an option on 20.9 mil oz. silver at
blende. $3 mil MC (plus $6.2 mil they
need to raise to maintain leases) / 8 mil oz, plus 20.9 mil oz.
(29 mil
oz.) = $.32/oz.
You get options and leases
that, if they raise money at the current share price, may give "approx" 21.3
ounces in the ground for 1 oz. silver's worth of stock.
YZC.V
(Yukon Zinc) (formerly Expatriate Res) http://www.yukonzinc.com/ info@expatriateresources.com
1-877-682-5474 Dr. Harlan D. Meade, President and CEO 198.7 mil shares fully diluted (Mar.
1, 2005) (listed on the
front page of the
web site!)
@ $.19/share Cdn x .82 US/Cdn = $.16
$31 mil MC
recent $16 million financing in Oct 2004
Mostly a base metals company: Zinc! Also has some silver
& gold.
6 properties. Most of the value is concentrated in the 100% owned
Wolverine Project. Wolverine has a resource of 6,237,000
tonnes grading 12.66% zinc, 1.55% lead, 1.33% copper, 371 g/t silver
and 1.76 g/t gold. Total silver mineralization across 6 properties: 97.2 mil
oz. silver,
565,000 oz. gold, = 103 mil oz. "silver equiv."
About 14.3 billion pounds
zinc, also some copper and lead. (Including
the new acquisition of the Howard's pass project, thru 21% ownership of
Pacifica Resources.)
$31 mil MC / 103 mil oz. silver
= $.30
You get "approx" 23.1 ounces
in the ground for 1 oz. silver's worth of stock.
Huge, huge zinc bonus, about 3
times the silver value. Smelter
credits are estimated
at about 60% zinc, 25% silver, 10% gold and copper, and the rest, other
minerals, but that assumes old low prices for silver, about
$5-6?/oz. My method of valuation puts a value on the silver only,
not the rest, so this is a significantly better value than my number
shows.
Call Dr. Harlan D. Meade, President and CEO 1-877-682-5474, and
ask him to send you an information packet on YZC.V. It contains a
good report on why he is bullish on both silver and zinc.
RDV.TO RDFVF.PK
(REDCORP VENTURE) http://www.redcorp-ventures.com/ http://www.redfern.bc.ca/index.html info@redcorp-ventures.com
85.1 mil shares fully diluted Aug. 2004
@ $.11/share Cdn x .82 US/Cdn = $.09
$8 mil MC
http://www.redfern.bc.ca/projects/tulsequah/exploration_resources.html#results TULSEQUAH:
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.
$8 mil MC / 38.3 mil oz = $.20/oz.
You get "approx" 34.6 ounces
in the ground for 1 oz. silver's worth of stock.
Additional comments: Declared not
feasible enough to do a feasiblity study in Spring, 2005. So,
they may try to expand the resources.
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.
* ABI.V
ABMBF.PK (Abcourt Mines) (I own shares) http://www.abcourt.com/ jobrien@abcourt.com Joe
O'Brien (416)750-8041 39.8 mil shares fully diluted (July, 2005)
@ $.21 share Cdn x .82 US/Cdn = $.17
$7 mil MC $1 million cash on hand
no debt., North of Montreal., ~11
mil shares family owned.
proven reserves... not ready to be opened, re-opened perhaps in mid
2005?
--Abcourt-Barvue: Past producer, existing infrastructure:
Put into production a second time, 1985-1990 for $20 million.
--43-101 numbers:: 20.7 mil silver
ounces, 659 million pounds zinc
--Estimated cost to reopen the silver
mine was (with the old plan) $35 mil Cdn: Estimated: 27.55% IRR, 98%
return on equity, payback period of 2 years.
-The current plan is to do a summer drill program to expand resources.
Value of Current Resources: $402 million worth of zinc at .61/lb,
$145 million worth of silver @ $7.50
$7 mil MC / 20.7 mil oz. = $.33/oz.
You get "approx" 21 ounces
in the ground for 1 oz. silver's worth of stock.
Additional comments: Renaud Hinse took a trip to Vancouver and
San Franciso,
and came out to Grass Valley, California my hometown, to meet with me
late August, 2004. Abcourt has been in business as early as
1977. The mine last operated
from 1985 to 1990. In 1980, the stock price hit a high of
$4.95/share. In 1985, they raised and spent $20 million
Cdn. to
start production, and in 1990 production was put on hold due to low
silver and zinc prices.
Imagine trying to run a business for 14 years with no revenue!
Yet,
during that time, they have managed to keep the company debt free, and
dilution to a minimum! Yearly costs to keep the claims and
equipment
of this family-run mine are $100,000, so that has been their secret of
survival.
--looking to raise $5 mil to reopen the silver/zinc mine.
(I own shares of Abcourt)
* SRLM.PK
(STERLING
MINING) (I own shares) http://www.sterlingmining.com/
RDemotte@aol.com Ray DeMotte 208 666 4070
12.2 mil shares outstanding (May 31, 2004)
16.6 mil shares fully diluted (May
2004) --(To get the latest number, I have to call Ray
DeMotte. Note the date.)
@ $3.30/share
$55 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, (construction finished, testing beginning)
Tesorito 17 mil -- + exploration potential
San Acacio
14 mil -- + exploration potential
Total: 231 mil oz. silver
$55 mil MC / 231 mil oz. = $.24/oz.
$55 mil MC / 550 mil oz. = $.10/oz. (exploration potential)
You get "approx" 29.3 ounces
in the ground for 1 oz. silver's worth of stock.
(Exploration potential is 69.)
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, and refurbish
the 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.
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."
(I own shares of SRLM.PK)
* CSG.TO
CSGLF.PK (Capstone Gold) (I own shares) http://www.capstonegold.com
Chris Tomanik IR (604)-684-8894 ctomanik@capstonegold.com
42.7 mil shares fully diluted (August 2004)
+ 16 mil in Dec. 2004 financing
58.7 mil shares fully diluted (Feb 2005)
@ $.75/share Cdn x .82 US/Cdn = $.61
$36 mil MC
$~6 mil Cdn, cash on hand.
They did a $9.1 million PP at $.75/share Cdn. in Jan 2004.
6 mil warrants at $1.00-$1.25 Cdn.
Projects all in Mexico, past producers. http://www.capstonegold.com/images/capstone_proj_sum.jpg
Cozamin is the largest property (gold/copper), for which drill results
will soon be announced.
Six properties (Still need about $12 mil to fully acquire 90-100% over
next 5 years, minus 3% NSR
"net smelter royalty")
Cozamin: indicated: 2.8 mil T x 85g/t Ag (7.4 mil oz. silver),
.5g/t Au (44,000 oz. gold)
+ inferred: 3.1 mil T x 103 g/t silver (10 mil oz. silver), .5g/t Au
(48,000 oz. gold)
High Grades range from about 200-300g/t silver. (6.5 - 9.5 oz.
tonne) --across 5 properties
Totals: (excluding Cozimin): 115 mil oz. silver, 2.3 mil oz.
gold. (138 mil oz. silver equiv)
Grand total: (including Cozimin): 156 mil silver equiv. ounces
Exploration Potential: up to 500 mil oz. silver at Claudia (580 mil
total?)
(will require about $5 mil to secure properties, and they recently
raised $10 mil)
$36 mil MC / 156 mil oz. = $.23/oz.
$36 mil MC / 580 mil oz. = $.06/oz.
You may get "approx" 30
ounces in the ground for 1 oz. silver's worth of stock.
Exploration Potential: 112
Additional
comments: Large copper
bonus. Large gold bonus, too.
PP Dec.
16th, 2004, 10 mil units at $.85, with a half warrant at $1.25, + 1 mil
agent options. Hold time expires April 16th, 2005 --and I think
is responsible for the recent price drop from about $1.20 to $.72/share.
Bill Murphy and I are in a contest of
the speakers for Cambridge House. Bill's "stock pick" as of June
10th
was ECU.V at $.26/share Cdn. My "stock pick" was Capstone gold at
$.72/share Cdn. The contest is to see which stock outperforms by
the
Toronto show this fall, Oct 2-3. see goldshow.ca for info on the
show.
Interestingly, I'm the silver bug, and I pick Capstone Gold, and Bill,
the gold guy, picks ECU Silver
Mini! Interestingly, both companies
had
market caps around $30 million. ECU: $30.5 mil US, CSG.TO: $34
mil US. (I own shares of CSG.TO)
HDA.V (HUSIF.PK) (HULDRA SILVER)
no web site
Phone: Magnus 1 (604) 261-6040
6.924 mil shares fully diluted (end '03?)
@ $.30/share Cdn x .82 US/Cdn = US $.25
$2 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
$2 mil MC / 8 mil oz. silver = $.21/oz.
You get "approx" 32.2 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."
* 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)
@ $5.30/share
$66 mil MC
261 mil oz. silver resources. Previous drilling spent over $100
million drilling the property.
$66 mil MC / 261 mil = $.25/oz.
You get "approx" 27.6 ounces
in the ground for 1 oz. silver's worth of stock.
Additional comments: Mines
Management continues to work toward permitting and developing the
Montanore Mine, hiring engineers, filing permits, etc., and has issue
no new shares in almost a year, since March, 2004.
The revised plan for
developing the Montanore Mine envisions an operation processing 12,500
tons of ore per day, yielding approximately 8 million ounces of silver
and 60 million pounds of copper per year at a cash cost of under $2.90
per ounce. (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."
About 2-3 oz silver/ton, 0.75% copper.
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 (MGN) 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 MGN 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 61% of the value (at current prices) in
copper (copper recently at
$1.43/lb.),
2 Billion pounds of copper, and 261 mil oz. of silver. Doing the
math:
261 mil oz. silver x $6.70/oz.
= $1.748 Billion.
2 Billion lbs copper
x $1.39/lb.. = $2.8
Billion.
Total value of mineralization before costs to extract, $4.5
billion. It was recently a high of:
$4.8 Billion.
This number increased from around $3 Billion just a few months
ago! These
numbers do not suggest a potential market cap value of the
company. The costs to extract that mineralization will be
substantial, along the way. However, if they are cost effective
at today's prices, and if metals prices double, then that is
substantial profit, and creates the leverage investors seek.
They do not have an active working mine--which is a minus. They
will need to raise capital to get a mine going: $236 million current
estimate.
Regarding environmental concerns: Noranda had a fully approved
Environmental Impact Statement (EIS) that led to successful project
permitting, so environmental concerns were not a factor in Noranda's
departure of the project in 2002.
* 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. / 13.5 mil shares fully diluted (Dec. 2004)
17.5 mil shares fully diluted (including, and after the purchase of
remaining 51% of the Avino mine) @ $1.28/share Cdn x .82 US/Cdn = $1.05 US
$18.4 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.)
The
Avino Mine operated from 1986 to 2001, producing about 497 tons of
silver, 3 tons of gold, and 11,000 tons of copper. That's about
1.6 million ounces of silver per
year.
Avino produced 166 ounces of silver for every one ounce of gold.
At a 60:1 value ration, that means that the value of silver to gold is
2.76 times as much value (today and historical) is in silver than gold.
They actually have over five silver properties/projects. I only
have numbers for one, the primary Avino mine
= 28 + 50 + 27 = 105
Avino owned 49% of that, or 51.5 mil oz., prior to the purchase
agreement for the remainder for an additional 4 million shares.
$18.4 mil MC / 105 mil oz. = $.17/oz.
You get "approx" 39.7 ounces
in the ground for 1 oz. silver's worth of stock.
Addional comments: The
Avino purchase is taking longer than anticipated. The
reason is that Avino is waiting for the approval from the
exchange. The Avino purchase agreement was agreed upon months
ago, subject to exchange approval. In the meantime, Avino has
proceeded with a feasibility study that should more than satisfy the
questions from the exchange. And the feasibility study is
anticipated in a few weeks, perhaps by the end of March, 2005.
The feasibility study should also detail how much money the company
should need to raise to put the mine back into production.
The
clear bonus with Avino is that they have a working mine, with existing
infrastructure. Many of the other exploration companies don't
have that.
(I own shares of ASM.V)
----------------------
In case you didn't notice, the list of companies,
above,
that have significant measurable resources, is in reverse.
The worst companies, that are the most expensive with the least
resources, are listed first, and
the better companies, with more resources at least cost, are listed
last, just above here. The list is done this way on purpose for
several reasons,
as follows. First, the best companies are in the middle of the
report (burried). Second, it allows the reader to see the many
other options available before seeing these ones. Third, this
means that this list is less likely to have a "pump and dump" type
effect. So, you have
to "scroll up" to see the list from this point.
Explorers
deserve their own category, since they cannot be valued by the
method of looking at reserves and resources of ounces of silver in the
ground. We do not know how many oz. they might have. They
are
exploring for that. A few explorers may also be producers, and
they are both listed here, if they do not have significantly large
well-defined resources.
This list, although at the bottom, in no way indicates that these
companies are more highly valued, or less valued, than companies listed
above. There may be less certainty in the companies listed below,
and more certainty in the companies above.
It is
also difficult to categorize a company as an explorer, since all silver
companies always hold more silver properties that need to be explored.
IE, everyone is an explorer!
The list above is not a list
of
producers, the list above is a list of companies with
significantly
measurable resources in the ground. Those below, generally do
not. Or, if they do have resource numbers, the numbers are very
small compared to their much larger exploration potential, and thus,
they are listed here.
(The order in this list is by largest market cap first, not by
"comparative value" of the market cap divided by the resources, as
above.)
MGR.V MGRSF.PK (MEXGOLD RSCS) http://www.mexgold.com/
52.5 mil shares fully diluted (spring 2004)
@ $2.79/share Cdn x .82 US/Cdn = $2.29 US $120 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"
$120 mil MC / 185 mil oz. = $.65/oz.
That's an "exploration
potential target"
Additional comments: Gammon Lake is a large shareholder,
26.3%.
Mexgold announced bonanza grade discovery on Jan 13th, 11
kilos per ton silver, over 2 meters.
Part of a section of "25.5-metres grading 1.16 grams per tonne gold and
961 grams per tonne silver."
CDY CDU.V (CARDERO RSCS) http://www.cardero.com/ hvanalphen@cardero.com
Henk Van Alphen -- President (604) 408-7488 40.6 mil shares outstanding (Jan, 2005
1Q)
+ 3.8 mil options
+ 3 mil warrants
47.4 mil shares fully diluted (Jan,
2005 1Q)
(many of Cardero's properties require additional share issuances,
requiring further detailed analysis, not provided here) @ $2.49 US $118 mil MC
($19 million Cdn cash in the treasury)
Additional comments: In
Jan., 2003, Cardero had three silver properties in Argentina, and was
mostly focused on the Providencia silver property... In Feb.,
2005, Cardero has 6 properties in Argentina, 6 in Peru, and 7 in
Mexico, for a total of 19 exploration properties. I know that
management is "elephant hunting", meaning they are looking for
properties with potential for very large, very big discoveries that
will interest the major, multi- billion dollar mining companies.
Aug 17, 2004 Cardero
Announces Results From Providencia
"Cardero is encouraged by these results although ongoing sample
recovery
problems remain a concern..."
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."
Cardero Provides Update on Iron
Oxide
Copper-Gold Projects in Peru--Whether it is cost
effective to
extract potentially $100 billion worth of iron minerals
remains to be seen, and is the job of an explorer like Cardero.
AOT.V
ASOLF.PK (ASCOT
RSCS) http://www.ascotresources.ca/
1 604 684 8950 40.2 mil shares fully diluted. (Dec.
2004)
@ $.30/share Cdn x .82 US/Cdn = $.25 US
$10 mil MC (US)
----
Additional comments: They own 5.723
million (Dec. 2004) shares of
Cardero, which usually is a greater asset value than their
market
cap. Ascot's share price is typically around 80% of the value of their
Cardero Stock, and less liquid.)
Owns about $14 mil U.S. worth of Cardero Stock at closing prices on
June 16th,
2005!
(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.
BCM.V BCEKF.PK (BEAR CRK MINING)
http://www.bearcreekmining.com/s/Home.asp info@bearcreekmining.com
39.2 mil shares fully diluted (April 2003)
@ $2.04/share Cdn x .82 US/Cdn = $1.67 US $66 mil MC Nov 18, 2004--Bear Creek Discovers New
Bulk Tonnage Silver Target Vancouver,
B.C. - Bear Creek Mining (TSX Venture: BCM) is pleased to announce that
it has agreed to acquire a 100% interest in the Santa Ana silver
prospect in southeastern Peru. Surface sampling at Santa Ana has
identified a large silver anomaly with bulk-tonnage potential. Four
hundred and ten rock chip samples systematically collected at 100 meter
spacing from outcrops, shallow workings (up to 3 meters deep) and
prospect pits have outlined an anomaly 2.8 kilometers long and 600
meters wide that averages 80 g/t (2.6 opt) silver, 0.30% lead and 0.23%
zinc. --What is that rock worth? See kitcocasey.comOn Feb 23, it was $22.47/tonne.
--To be drilled, 2nd, Q, 2005. (other samples had up to 111 oz.
/tonne!)
--Drilling results have come in, and the stock EXPLODED July 12th, up
65% on 3 million shares traded.
The grades, at 3 oz/tonne on average, are relatively low, but the
overall size of the project seems to be what caught investors'
attention. 4 holes, 900 meters apart, each hole about 100 to 190
meters deep, over a 1.5 kilometer target. Mineralization is open
at
depth, and laterally.
Excerpt: The mineralized zone occurs between 665 feet and 1916 feet
below surface (which is the current bottom of the hole),
for a mineralized intercept of approximately 1251 feet.
Alteration intensity, chalcopyrite concentrations, and the
width of quartz/sulfide veins and replacements increase
with depth. The hole remained in copper mineralization and
associated alteration to its final depth of 1916 feet, when
it was halted due to restrictions on winter drilling required
by the U.S. Forest Service. O.T. intends to re-enter and
continue the hole as soon as possible in 2005 to determine
the vertical extent of this mineralization.The O.T. technical team
feels that these results are very
significant geologically, and interprets the mineralized
drill intersection to be representative of ``porphyry copper-type''
mineralization. Porphyry deposits commonly form large tonnage,
bulk mineable zones containing copper, molybdenum and gold.
The mineralization at nearby Butte, Montana (known as the
``Richest Hill On Earth'') is one such porphyry copper deposit.
Historic silver production for the Butte district, from 1880 to 2000
was 714,643,005 oz. silver.
They think their deposit may be bigger than "the richest hill on
earth", which is located near their property, in the Butte
district.
The exploration potential for this company is astounding, if they are
right.
"The Ruby property
encompasses the past-producing high-grade Ruby
gold-silver deposit which produced an average of 2.44 ounces per ton
gold and 38.66 ounces silver per ton. A 193 ton bulk
sample of a
high-grade base metal mineralized zone associated with the Ruby deposit
returned 7.6% lead, 5.19% zinc and 1.31% copper per ton."
"...This deposit is situated adjacent to the Ruby property and
according to old reports contained 0.88-34.28 ounces per ton gold,
35-527 ounces per ton silver, 1.96-11.84% lead, and up to 5%
copper." It's
'Our Turn' For Silver by Greg Kyle June 16, 2004
MCAJF.PK (MACMIN LTD) http://www.macmin.com.au/ macmin@technet2000.com.au 482 mil shares and options (June, 05)
see "corporate / share structure"
@ $.10/share $48 mil MC
This stock seems extremely
volatile in price, with low liquidity, ranging from 7 cents to
13 cents.
Total resource: 56 million oz. --from 2004 annual report.
Will soon become a producer.
The company is debt free, but
has an "equity line of credit of $10
million" so that they can issue shares for money to a certain
group. This may explain the wild changes in share price.
The potential investors want a lower share price for any new
financings! Also, Macmin has several
multi-million oz. potential projects.
PP: Jan 19th, 2005, 1.6 mil shares at $.126.
MAI.V MNEAF.OB (MINERA ANDES) http://minandes.com/ ircanada@minandes.com (604)
689-7017 Art Johnson 122 mil shares fully diluted (June
17, 2005) (via email)
@ $.46/share Cdn x .82 US/Cdn = $.38 US $46 mil MC
Has working capital of $1.5 mil Cdn as of Feb., 2005
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: (28.5 mil shares
in March 23 2005 PP
at $.55) PP comes free trading in July 23?
June 2005: stockpileing ore at the
Huevos Verdes high-grade gold/silver project in southern Argentina
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 have been doing significant
exploration work to increase their resources, and they have
recently raised the money to be able to pay for that exploration
work. Third, they have a copper project, and copper prices are
rising. I moved MAI.V to the explorers list to be more fair to
their valutation.
*
EDR.V EDRGF.PK (ENDEAVOUR SILVER) (I own shares) http://www.edrsilver.com/s/Home.asp invest@edrgold.com
Hugh Clarke, Investor Relations 1-877-685-9775 28.6 mil shares fully diluted (March
23, 2005)
@ $1.60/share Cdn x .82 US/Cdn = $1.31 $37.5 mil MC
As of May 28th, 2004, they have $9 mil Cdn cash.
If all options and warrants are exercised, they will have another $9.8
mil Cdn in cash.
They believe there may be a
chance they will not need to dilute further
to develop current silver production plans at the Santa Cruz
Mine.
Endeavour Silver Corp.: Silver Resources Triple to More Than
12 Million Ounces at Santa Cruz
Mine, Durango, Mexico Wednesday March 30
They
have 51% title to a working mine!
http://www.edrgold.com/s/SantaCruzMine.asp
--currently producing 600,000 oz. silver/yr.
--May increase ownership from 51% to 100% by 2008 for $7 million.
--plans to increase
production to 4,000,000 oz. silver/yr with a cash cost of under
$3.00/oz. --projects silver production ...at its
Santa
Cruz mine and Guanacevi plant in Durango, Mexico, to triple in the
twelve month period starting March 1, 2005 to 1.3 million oz.
Additional comments
PP: Dec 23, 2004, 1 mil units at $1.60 + 1 full warrant at $2.10. Silver & Endeavour Silver
- Hommel -- 11 March 2005
TVI.TO TVIPF.PK (TVI PACIFIC) http://www.tvipacific.com tvi-info@tvipacific.com
Dianne (IR) Phone: (403) 265-4356 425 mil shares fully diluted
(March 31, 2005)
@ $.095/share Cdn x .82 US/Cdn = $.08 US $33 mil MC Cash in hand: $600,000 March, 2005
"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.
Additional comments: TVI is producing gold, and earning nearly
$1,000,000 per month, gross. Their costs are about
$200/oz.? TVI expects to double production by June.
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!
ECU.V ECUXF.PK (ECU SILVER MINI) http://www.ecu.ca/ Michel Roy, President 011-52-871-727-1061 or 819-797-1210 ecu@ecu.qc.ca
= "145 mil shares fully diluted-about" verbal, from IR dept. (Sept.
9th, 2004)--including "about 5
mil shares in Sept 21 financing."
@ $.24/share Cdn x .82 US/Cdn = $.20 $28 mil MC
ECU.V is also exploring other gold properties.
ECU
Silver
announced the
closing
of
a
private
placement
resulting
in
gross
proceeds
of
$7,000,000
received
in
four
(4)
installments
by
ECU
Silver.
Pursuant
to
this
private
placement,
ECU
Silver
issued
an
aggregate
of
24,137,931
units
at
a
price
of
$0.29
per
unit,
each
unit
being
comprised
of
one
(1)
common
share
in
the
share
capital
of
ECU
Silver
and
one
third
(1/3)
of
a
common
share
purchase
warrant,
with
each
whole
common
share
purchase
warrant
entitling
its
holder
to
acquire
one
common
share
at
a
price
of
$0.35
ECU is now a producer: Producing
about $100,000 of ore per week in May, 2005. --223 tonnes/day,
$76/tonne ore. Costs to produce that ore were not yet specified
in recent news releases.
Bill Murphy and I are in a contest of the speakers for Cambridge
House. Bill's stock pick as of June 10th was ECU at $.26/share
Cdn. My stock pick was Capstone gold at $.72/share Cdn. The
contest is to see which stock outperforms by the Toronto show this
fall, Oct 2-3. see goldshow.ca for info on the show.
Interestingly, I'm the silver bug, and I pick Capstone "Gold", and
Bill, the gold bull from GATA picks ECU "Silver" Mini!
Interestingly, both companies had market caps around $30 million.
ECU: $30.5 mil US, CSG.TO: $34 mil US.
SPM.V SMNPF.PK (SCORPIO MINING) http://www.scorpiomining.com
http://www.scorpiomining.com/s/SendMessage.asp 53.6 mil shares fully diluted March
31, 2005
@ $.60/share Cdn x .82 US/Cdn = $.49 US $26 mil MC Cash on hand: $8.5 mil Cdn. March 31,
2005
Scorpio's recent March 2004, $16 million financing was at $2.25
Cdn/share!
--
The Nuestra Senora Project: (the Candelaria deposit): Total Measured
& Indicated: 131,058 tonnes @ 520.94 g/t Ag = 2.1 mil oz. of high grade silver, 16
oz./ton. Inferred: 49,468 tonnes
@ 658.98 g/t Ag (21 oz./ton) = 1 mil oz. silver
--the Cochrane Hill Gold Deposit:
The total Indicated Resource ~ 112,460 contained ounces of gold.
Total: 4 mil oz. silver equiv. The company is working on a 43-101
resource calculation from the recent drilling program, May, 2005.
Additional comments:
Very High Grade, narrow intersections... One intersection, was about 33
feet of 32
oz./tonne silver.
* MMGG.OB (METALLINE MINE) (I own shares)
http://www.metalin.com/site_map.html metalin@attglobal.net Merlin
Bingham 208-665-2002 21.9 mil shares fully diluted (March
19th, 2005)
@ $1.10/share US $24 mil MC
$5 million cash on hand, July 31, 2004
Additional Comments:
Silver, Zinc, & Metalline Mining
-- Hommel March 19th, 2005
--one correction for the article. The word "reserves" should be
"resources".
--4039.6
million pounds
of zinc.
@ $ .59/lb, that's $2.4 billion dollars worth of zinc, and who knows
how much silver.
They found exactly what they were looking for, 4 billion pounds of
zinc, and they are drilling for more.
Their latest quarterly also includes a statement of the historical
production, right below: Zinc & Silver in Mexico: Sierra Mojada. Sierra Mojada
is a Silver District!
"The
Sierra Mojada Property has produced in excess of 10 million tons of
high-grade ore that
graded in excess of 30% lead, 20% zinc, 1% copper
and 1 kg (31 ounces) silver per ton that was shipped directly to the
smelter. The district
has never had a mill to concentrate ore. All of
the mining was done selectively for ore of sufficient grade to direct
ship; mill grade ore was left unmined."
(That's 310 million ounces of silver. Who knows how much silver
is left?) That's the question with an
explorer.
--Potentially the lowest
production cost in the entire zinc industry, ($.25/lb., not $.35/lb
industry standard) due to new "oxide deposit"
chemical extraction process as revolutionary as "heap leaching".
The
team that did the feasiblity study for the only other existing oxide
zinc deposit in production is now working on MMGG's feasibility study.
If MMGG can produce zinc at $.25/lb.,
and receive $.60/lb, that's $.35/lb difference. That, x 4 billion
pounds zinc is $1400 million dollars. Compare that to the market
cap! Looks like there will be plenty of profit even after the
costs of building a multi million dollar mine.
(Merlin of MMGG.OB, and Harlan of EXR.V (friends) both have
reports that will educate you on the bullish story for Zinc.)
I own shares of MMGG.OB
EXN.V
EXLLF.PK (EXCELLON
RSCS)
http://www.excellonresources.com info@excellonresources.com 150 mil shares fully diluted (April
2005)
@ $.195/share Cdn x .82 US/Cdn = $.16 US $24 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 BONANZA GRADE SILVER, LEAD & ZINC.
Apex is the joint-venture partner.
Additional comments: NOW PRODUCING
SILVER. The geologist,
Peter K.M Megaw, is also working with MAG.V.
Excellon completed a 9000 unit
financing for $9.9 million. A "silver debenture". The holders of
each unit can opt to receive cash or silver bullion based on 200 oz. of
silver per U.S. $1100. Thus, Excellon has "hedged" and pre-sold
1.8 million ounces of silver (OUT OF ALMOST 6 MILLION OZ.) at
$5.5/oz. Each unit also comes
with 1000 warrants for Excellon stock at $.325.
Excellon hopes to be able to pay back
this "silver debt" within perhaps 200
days from June 2005, and they believe they
have much
more exploration potential.
MAG.V
MSLRF.PK (MAG
SILVER) http://www.magsilver.com info@magsilver.com 29.8 mil shares fully diluted (June 9,
2005)
@ $.77/share Cdn x .82 US/Cdn = US $.63 $19 mil MC
Additional comments: --"MAG Silver Corporation enters the silver
market as a powerful force.
MAG combines a seasoned management team with two drill-ready geological
extensions of high-grade world class producing districts. MAG controls
100% of the Juanicipio property adjacent to the Fresnillo District in
central Mexico,
currently producing over 12% of the world's silver from high grade
underground
vein structures."
MAG Silver Announces
Industrias Penoles Elects to Exercise Share Subscription Tuesday May 3 The exploration Joint Venture covers
MAG's wholly-owned 8,302
hectare Juanicipio Property in Zacatecas, Mexico and Penoles can earn
a 56% interest in the property by expending US$5,000,000 over a four
year period.
My comments: This deal, to sell 56% at $5.5 million, values 100% of the
Juanicipio Property at $9.8 million,
U.S.
"MAG continues to hold a 100% interest in the surrounding Lagartos
NW and SE properties that make MAG the largest landholder in the
Zacatecas Silver district."
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.
* KRE.V KREKF.PK (KENRICH ESKAY) (I own shares) http://www.kenrich-eskay.com/ info@kenrich-eskay.com
Toll-free 1-888-805-3940 or (604) 682-0557
29.2 mil shares fully diluted (July, 2004)
@ $.80/share Cdn x .82 US/Cdn = $.66 US $19 mil MC
Recently completed a $2.3 million financing for exploration.
Kenrich
Eskay's "Cory" property (25,000 acres, 100% owned) is 10km south of
Barrick's silver property, Eskay Creek, which is "the fifth
largest silver producer in the world", with
a reserve "at the beginning of 2001, 1.42 mil tons, grading 1.5
ounces/ton of gold, and 68.3 ounces/tonne of silver, 3.2% lead, 5.2%
zinc.--That's Barrick's Eskay Creek property. Kenrich Eskay is
hoping to find something similar nearby. (See 5th slide of http://www.kenrich-eskay.com/images/KRE-Presentation_files/frame.htm
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! The 2005 Geologist's report 15 page executive summary
recommends $4.5 million worth of exploration for 2005. The
one-sentence summary of the report is that "The Corey Property is
highly prospective for the discovery of a second Eskay Creek-style
deposit." I spoke with the key geologist in person in Vancouver
in
January for over an hour. It seems to me that they know what they
are doing and have a very good chance of finding something.
I own shares of KRE.V
Additional Comments:Now
Canada's 3rd largest drilling company. Cabo now owns over
100 rigs, and employs 225 people.
The cost to acquire this latest drilling company was $3 million Cdn,
and included 1.8 million shares at $.90/share!
Recently, at the mining shows, I've
heard it's getting hard to find drillers. That's very
understandable given how much cash all the companies have raised to go
out and drill. There are many bottlenecks standing in the way of
increased production. Limited competent geologists, engineers,
builders, mining equipment, exploration teams, and drill rigs.
Cabo is now in a very good position.
Drilling Services are in extremely high demand, and Cabo can
charge up to 25% more this year than last year.
Cabo's drilling acquisitions are profitable, and providing cash flow.
In the article, I highlight what I
feel is Cabo's most imporant asset: Their property in 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
EGD.V EGDMF.PK
(ENERGOLD MINING) http://www.energold.com/s/Default.asp info@energold.com
Fred Davidson President (604) 681-9501
18.4 mil shares fully diluted (May 3, 2004)
@ $1.01/share Cdn x .82 US/Cdn = $.83 $15 mil MC
Cash on hand: $7.2 million Earned $.01/share, 1 Q, 2005, 11th
consecutive quarter of earnings. "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.
See Impact
Minerals, of which Energold owns a controlling interest.
SDR.V
SDURF.PK (STROUD
RSCS) http://www.stroudresourcesltd.com/projects-santo.html gcoburn@stroudresourcesltd.com
Mr. George E. Coburn, President Tel: 416-362-4126
99 mil shares fully diluted (Oct, 2004)
@ $.245/share Cdn x .82 US/Cdn = $.20 $20 mil MC
JV partner with APM.V on Santo Domingo Silver Project in Mexico.
10oz. silver/ton x 22,000 tonnes. minimum...
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.
$20 mil MC / 45 mil oz. =
$20 mil MC /150 mil oz. =
APM.V partners with SDR.V
APM.V to get a 50-70% interest.
50% x 150 mil oz.= 75 mil oz., 70% x 300 mil oz. = 210 mil
oz.
$16 mil MC / 75 mil oz. =
$16 mil MC / 210 mil oz. =
EPZ.V ESPZF.PK (ESPERANZA SILVR)
http://www.esperanzasilver.com/s/Home.asp info@esperanzasilver.com
37.5 mil shares fully diluted (June 2005)
@ $.315/share Cdn x .82 US/Cdn = US $.26 $10 mil MC "Currently, Esperanza is exploring and
acquiring new bulk-tonnage silver
prospects in both Peru and Mexico. We are extremely excited about our
projects in both countries. Neither has experienced significant silver
exploration recently and so much untapped potential remains. Company
exploration is now active on our Flor de Loto and Estrella Projects,
Peru and La Esperanza in Mexico. We have also identified and are in the
process of acquiring new properties to add to our exciting portfolio." PP: Dec 1, $1.5 mil Cdn at $.40/unit
with 1/2 warrant at $.55.
QTA.V QURAF.PK (QUATERRA RES)
http://www.quaterraresources.com/ corpdev@mnxltd.com
Jay Oness (of Western Silver) Toll Free: 1-888-456-1112 60.6 mil shares fully diluted (June,
2005)
@ $.34/share Cdn x .82 US/Cdn = $.28 US $17 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 ($2 billion market cap).
Quaterra Resources Inc: Drilling Resumed at Nieves Silver
Property Wednesday December 1
5000 meter program to follow up on:(129.3
ounces/tonne)
over
1.5
metres
"
The
company
said
the
results
demonstrate
that
the
Nieves
mineralized
system
continues
to
have
potential
for
development
of
Fresnillo-style
underground
high
grade
veins,
and
for
bulk
tonnage
silver
mineralization."
QTA.V is a Sister Company to Western Silver, WTZ above.
See also Southern Silver.
SML.V SMLZF.PK (STEALTH MNRLS) http://www.stealthminerals.com Bill@McWilliam.com 604-306-0391
Bill McWilliam, Chief Executive
Officer 103.4 mil shares fully diluted (March,
2005)
@ $.155/share Cdn x .82 US/Cdn = $.13 $13 mil MC PP: Dec, 2004; $4 million finaning: 3
mil shares at $.45 and 5 mil shares at $.50 flow thru.
SRY.V (STINGRAY RSCS) http://www.stingrayresources.com/ info@stingrayresources.com
(416) 368 6240
17.1 mil shares fully diluted (May 28, 2004)
@ $.68/share Cdn x .82 US/Cdn = $.56 $10 mil MC - Current projects centered in the Sierra Madre Belt of Mexico
NJMC.OB (NEW JERSEY MIN)
http://www.newjerseymining.com/ minesystems@usamedia.tv
Fred or Grant Brackebusch
23.6 mil shares fully diluted May 2, 2005
@ $.44/share US $10 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.
7 Silver properties & 2 gold properties.
March 31, 2005 Management thinks that the Silver Strand is
an excellent exploration property with potential for a deposit
containing up to 100 million ounces of silver equivalent.
PXI.V
PNXPF.PK (Planet
Exploration Inc.) http://www.planetexploration.info/mexico.asp invest@planetexploration.info
30.8 mil shares fully diluted (Jan. 2004)
@ $.34/share Cdn x .82 US/Cdn = $.28 $9 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." KG.V KDKGF.PK (KLONDIKE
GOLD)
http://www.klondikegoldcorp.com/ investorrelations@klondikegoldcorp.com
As of Feb 12, 2005, an 8.2 Mil. pp is being processed and will close
soon. This would make 84,228,910 shares outstanding and a
fully diluted amount of 117,643,910 shares.
@ $.09/share Cdn x .82 US/Cdn = $.07 US $9 mil MC PP: Jan 17, 2005: 6 mil units at
$.12 with a full warrant at $.14.
This company has many silver
and gold properties. Klondike has
one silver property that could be producing within weeks.
GPR.V GPRLF.PK (GREAT PANTHER RES) http://www.greatpanther.com info@greatpanther.com Robert
Archer, President, & Kaare Foy CFO: 604 608 1766 (Reg Avocat, IR) 22.8 mil shares fully diluted (June,
2005)
@ $.50/share Cdn x .82 US/Cdn = $.41 $9 mil MC
"Great Panther Resources Limited has combined experienced
management, access to capital and high quality projects in Mexico.
Silver and gold prices
gained 26% and 21% respectively in 2003 and GPR
intends to leverage this through the acquisition and development of
high quality silver and gold
projects."
--Option on the Topia Silver
Mine
in Mexico, formerly owned by Penoles, closed in 1999. Est. 5
years worth of resources left. needs payments totaling about $2.5
million over 3 years. Plan to
increase production to 200 tonnes/day with $1 million refurbish
cost. May have up to $5 million/year gross cash flow. Value
of the metals is from about 50% silver, 50% lead & zinc.
APE.V (Apogee Minerals Ltd.) http://www.apogeeminerals.com
John Carlesso, President and C.E.O. jcarlesso@apogeeminerals.com
(416) 861-0341
24.4 mil shares fully diluted (Feb 2005)
@ $.34/share Cdn x .82 US/Cdn = $.28 $7 mil MC
--has 4 advanced silver/zinc/lead exploration properties in Bolivia
Potosi, in Bolivia, is the most productive silver mine in history, with
2 billion oz. of silver produced from 1545 to 1825. That's
perhaps
1/20th of all silver production since the beginning of time. Apex
Silver is also in Bolivia.
SSV.V (SOUTHERN SILVER EXPLORATION) Jay Oness Phone: (604) 684-9384 corpdev@mnxltd.com
21.9 mill shares fully diluted (Jan 2005)
@ $.34/share Cdn x .82 US/Cdn = $.28 $6 mil MC
Silver/Lead/Zinc in Mexico
See also Quaterra and Western Silver. Same guys with these 3
silver companies. * CMA.V
CRMXF.OB (Cream Minerals Ltd)
(I own shares.) http://www.creamminerals.com/cream/main.htm http://www.langmining.com/cream-mx/ info@creamminerals.com 1 604 687 4622
= 37.9 mil shares fully
diluted (April, 2005)
@ $.18/share Cdn x .82 US/Cdn = $.15 US $6 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. $6 mil MC / 360 mil oz. =
$.02/oz. (exploration potential) --not yet
even a
"resource"!
Additional comments: 2 mil unit PP in
April, 2005, at $.35 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"...
(I own shares of CMA.V)
TM.V
TUMIF.OB (TUMI
RESOURCES)
(TUY Frankfurt Exchange) http://www.tumiresources.com nicolaas@attglobal.net Nick
Nicolaas IR (604) 657 4058
24 mil shares fully diluted (Mar. 1, 2004)
@ $.30/share Cdn x .82 US/Cdn = $.25 US $6 mil MC
Cinco Minas: (not really feasible)
43-101 compliant update: 14.3 mil oz. silver, 100,000 oz. gold
indicated and inferred,
Tumi owns 60% interest in Cinco Minas .6 x 15 = 9 mil oz.
But
there is further exploration potential at Cinco Minas. The 43-101
report only considers 120 meters of 790 meters, and it's open at depth.
Debt free, 2 projects in Mexico.
Raised $2.7 million Nov. 14, 2003 Tumi Acquired new silver/gold
exploration projects in Mexico. http://www.tumiresources.com/en/Releases/tumiprJan1905.pdf
Exploration Potential: 24
(likely plus more after bonanza silver
discovery late November, 2003.)
* PDO.V (PORTAL RESOURCES LTD) (I own shares) http://www.portalresources.net info@portalresources.net
Phone: (604) 629-1929 Reg Advocaat
11.7 mil shares fully diluted (Feb 2005)
5 mil shares owned by management!
@ $.65 Cdn x .82 US/Cdn = US $.53 $6 mil MC
In Argentina, in Chubut
Province, Arroyo
Verde Gold/silver Project. Option
to own 100%, need about another $1 mil or less to exercise
option. Property was explored a bit, and now, will be
re-explored. Planning to do a 3000-meter reverse-circulation
drill program, to go deeper,looking
for the "boiling point", hopefully a wider higher grade area..
--Possible open pit, no historic workings, 200km to the east of IMA's
properties. The property was formerly owned by Minera Andes
recently, and Pegasus, who ran out of time and money at the bottom of
the market in 1999.
In Argentina, in Mendoza, San Rafael project (Gold and copper in
Argentina) 700 sq. mile prop., 30 drill targets...
GNG.V GGTHF.PK (GOLDEN GOLIATH) http://www.goldengoliath.com/ jps@goldengoliath.com
604-682-2950
42.2 mil shares fully diluted
@ $.15/share Cdn x .82 US/Cdn = $.12 $5 mil MC
Additional comments: Silver
Explorer in Mexico in the the Sierra
Madre mountains: Uruachic.
They hope to take a collection of old
silver
mines and make them open pittable. They have some very
high
grades
from chip samples from the tunnels, ranging from 100g to 500g all the
way
up to around and over 1000g/ton
of silver.
IPT.V IMPJF.PK
(Impact Minerals) http://www.impactminerals.com/s/Home.asp
Frederick W. Davidson, President (604) 681-9501 inquiries@impactmin.com 19.3 mil shares fully diluted (1 Q,
2005)
@ $.34/share Cdn x .82 US/Cdn = $.28 US $5 mil MC
IMPACT is exploring the extensive
Zacualpan Silver Mining District in central Mexico. IMPACT signed
agreements that include options on two operating mines and a processing
plant.
Example /sample: 3 meters of 1463g/t Silver.--June 17th, 2004
news release
GRG.V (GOLDEN ARROW RESC) (I own shares) http://www.goldenarrowresources.com/s/Home.asp shareholder@tsx.com
Sean Hurd (800) 901 0058 (604) 687-1828 (same # as for
IMR.V, which spun off Golden Arrow) 11.5 mil shares fully diluted (Feb,
2005)
$750,000 Cdn in the bank.
@ $.53/share Cdn x .82 US/Cdn = $.43 $5 mil MC
35 exploration properties
Argentine & Peru Property portfolio
--Spun off from IMR.V (IMA Exploration)
--$2 million financing in Nov. 2004 at $.63 with warrants at .80
I own shares of GRG.V
LSM.V LASCF.PK
(Langis Silver &
Cobalt Mining Co Ltd) no web site: Patrick Sheridan Jr. President and
Secretary-Treasurer Phone: (416) 628-5936
11.6 mil
issued
and
outstanding
common
shares. (not fully diluted)
@ $.33/share Cdn x .82 US/Cdn = $.27 $3 mil MC
TBLC.PK (TIMBERLINE RES) http://www.timberline-resources.com
Company contact: Bill Hoyt, director.
785-383-9246 bill@hoytstation.com 6 million shares outstanding.
@ $.42/share $2.5 mil MC
The Company has acquired seven
mineral prospects to explore. These prospects are located in Nevada,
Idaho and Montana. Timberline to
Lease Montana Properties to Sterling Mining Thu, Aug 26 -
Business Wire
The Montana property is near the property owned by Mines
Management. Silver Property: Minton Pass
project: 20 claims containing Revett formation silver/copper
project in
Northern Montana. At least 5 drill holes were drilled on or near
the
claim group in the 1970s and 1980s. A 1971 geologic report
indicates
that mineralized outcrops of Revett quartzite containing bornite and
other copper minerals could be traced for about 1 mile along strike of
the outcrop.A short adit was driven to expose the
mineralization.Sampling results showed a stratographic thickness of
16.7 feet that averaged .7% copper and 1.78 opt silver.
Detailed work plans are under development, pending acquisition and
study of prior exploration data. --Feb, 2005, finalized and signed an
agreement with Hecla to earn 49%
of their Snowstorm Project/Mine: The Snowstorm Mine-- a small but highly profitable operation from the
early-1900s that produced 800,000
tons of ore averaging 4-percent copper and 6 ounces per ton silver.
*
AUN.V AUNFF.PK
(Aurcana Corp) (I own
shares) http://www.aurcana.com/ kbooth@aurcana.com
CEO Ken Booth 604-331-9333
42.7 mil shares fully diluted
(Sept 2004)
@ $.06/share Cdn x .82 US/Cdn = $.05 US $2.3 mil MC
Cash $650,000 Cdn, no debt
Drilling to commence on high-grade, gold-silver targets. (in Mexico)
6 properties.
Real de Catorce--Historically, more than 220 million ounces of silver
was mined from five
million tons of ore on this district, approx. 48 ounces of silver per
ton
(I own shares of AUN.V)
LEG.V
LEGCF.PK (LATEEGRA
RSCS) http://www.lateegra.com info@lateegra.com
Michael Townsend, President Toll Free: 1-866-669-9377 Richard one of
the IR guys.
38.7 mil shares fully diluted? (Jan 7, 2004)
@ $.065/share Cdn x .82 US/Cdn = $.05 US $2 mil MC
see also Minvita (I own shares of Minvita, MVE.V)
--involved with 7 exploration projects, one near the Eskay Creek Silver Mine, one in China.
CLZ.V (Canasil Resources Inc ) http://www.canasil.com/
22.4 mil shares fully diluted (July 2004)
@ $.08/share Cdn x .82 US/Cdn = $.06 $1.5 mil MC
Exploration properties in Mexico and B.C.
ASLM.PK (AMER
SILVER MINI)
2.75 million shares issued
@ $.51/share $1.4 mil MC
Claim between CDE and the old Sunshine mine.
JV with CDE subsidiary untill 2017. ASLM to receive 20% net
royalty,
& if silver prices reach $16.50 an ounce or above, the profit
sharing goes to 40%.
Coeur d' Alene, Idaho
* MVE.V (MINVITA
ENTERPRISES) (I own shares) http://www.minvita.com/ 604-682-3680 Fax: 604-682-3992 dino.teuton@shawlink.ca 13.8 mil fully diluted shares Feb, 2005 @ $.11/share Cdn x .82 US/Cdn = $.09 $1.2 mil MC
(I own shares of MVE.V)
------------------------------------------------------------------
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Final Category: Silver stocks FOR YOU and I TO RESEARCH further:
These are companies that may have good exposure to silver, but that
I cannot determine the market cap, because I cannot find the number of
issued and outstanding, or more importantly, fully diluted shares.
Silver
Phoenix Resources, Inc. not yet public)
Bill Murray bmurray@sunwave.net
250 832 0336
Bill is selling "seed shares" to help take "Silver Phoenix" public.
The plan is to start from scratch, and build up to 150 investors to go
public, rather than use a "shell" company.
Bill has up to 6 silver properties, one of which has an hisoric
resource (not 43-101 compliant) of 10 million oz. of silver. In
Canada. Silver Phoenix plans to buy Bill's properties for 1 million
shares, up
to about 10 million shares over time, plus $750,000 (only if the
properties move to full production), plus Bill retains a variable 3%
NSR. I estimate that buying seed shares at $.25 Cdn to $.40 Cdn,
means that the silver in the ground costs the investor in Silver
Phoenix (at $.40/share) from $.10 to $.50/oz., or less if there is more
than 10 million oz. of silver on Bill's properties. Bill runs http://minersmanual.com/
Check out the Silver Forum at http://www.minersmanual.com/bulletinboard.php
BGS.V BLDGF.PK (BALLAD GLD SLVR) http://www.balladnet.com ir@balladnet.com
@ $.275/share Cdn x .82 US/Cdn = $.22 US
Bonanza grade "grab samples" in southern Argentina near IMA.
32 oz./T gold and 22 oz./T silver grab samples.
FORTUNA VENTURES INC (FVI.V) currently
about 9 mil shares outstanding management owns 70% financing needed: $10 mil at $1 with warrant at $1.25 property in peru 21 mil oz. silver Exploration potential: 40 mil oz.
Silver Syndicate Mining Corp (SDMC.PK) Minco Silver (not yet public) 160 mil oz. deposit in China 888 288 8288 bill meyers michael legg
Sino Silver Corp (SSLV.OB) (I've heard this company is overvalued with
nearly a $100 million market cap, and a property acquired for $1
million) and then, trading was recently halted. Info@SinoSilver.com http://www.sinosilvercorp.com/
1-888-471-SINO or 604-699-8622 info@SinoSilver.com
Lixus Gold: --www.lixusgold.com
A geological report conducted for Cobre Valley Mineral Recovery Co. in
2000 investigated these two properties as well as an adjacent holding.
The report concluded through surface and underground assays and
measurements that probable reserves on the two properties under
acquisition are from 3 million to greater than 10 million tons grading
6 to 12 opt/AG.
UNCNE.OB (UNICO INC) http://www.uncn.net/
Ray Brown, 530-873-4394
Andrew Beyer (909) 587-8072
@ $.029/share
You get options and leases
... and an unknown debt and share structure...
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..."
New President, still trades under $.25/share.
Silver Buckle Mines Inc (SBUM.PK) Coeur d' Alene, Idaho
Merger Mines Corp (MERG.PK) --Leased by Sterling Mining, who is
exploring their property, and owns 14% of
Merger stock.
2.7 mil shares outstanding. (Sept, 2004)
Coeur d' Alene, Idaho
Signal Silver --hopes to trade by next year.
Mineral Mountain Mining Company Delaine Gruber, 208-664-3544 www.minmountain.com
Coeur d' Alene, Idaho
Independence Lead
Coeur d' Alene, Idaho
Metropolitain Mines Ltd (MEMLA.PK) --next to the Sunshine in Coeur d'
Alene, Idaho
http://www.oxusgold.co.uk/
216,559,942 Fully Diluted shares
oxus will spin off: Khandiza is a high-grade zinc, silver, copper
and lead deposit located in the Sariasia region of southeast Uzbekistan.
Silver Mountain Lead Mines Inc (SMLM.PK)
Silver Verde May Mining Co (SIVE.PK)
Silver Surprize Inc (SLSR.PK)
Standard Silver Corp (SDSI.PK)
Horn Silver Mines Co (HRNS.PK)
(801)-281-5656
Andean American Mining Corp AAG.V ANMCF.PK http://www.andeanamerican.com/
--concentrates solely in Peru
Peru currently stands as the largest gold producer and second largest
copper producer in Latin America as well as the second largest silver
producer in the world.
Here are a few more stocks to look up. I don't even know if some
of these are silver miners.
Lfex - Lucky Friday Extention
Kcpm - King of pine creek
Vins - vindicator silver,
Osburn
Wallace
APNE
ALS
Royal Silver Mines (RSMI)
Bunker Hill-- owned by new bunker hill mining company, stockpiling ore.
Nabob
New Era
For more info on more silver stocks,
see the new book, "The
Silver Pennies" by David Bond.
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.
Jason Hommel 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 19 silver stocks, in no particular
order: ABI.V, MVE.V, SRLM.PK, CFTN.PK, IMR.V,
CSG.TO, GRG.V, ASM.V, CMA.V,
PDO.V,AUN.V,
EDR.V,
MGN, CBE.V,
SVL.V, MMGG.OB, OTMN.PK, KRE.V, CZN.TO. 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 receive "finder's
fees" from silver companies on occasion.