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Showing posts with label Silver Stocks. Show all posts
Showing posts with label Silver Stocks. Show all posts
Monday, May 7, 2012
Thursday, April 5, 2012
Huldra Silver - Keep an Eye on this One
Huldra silver is one silver stock that could be in production very soon and is a stock I would keep an eye on for 2012.
From a recent Seeking Alpha article, from author Jordan Roy-Byrne:
"There's one company that we've just begun covering that we really like. We met with management at the Prospectors and Developers Association of Canada (PDAC) conference. It's Huldra Silver Inc. (HUSIF.PK) and is going to be a new high-grade silver producer. It is expecting its final permit in April before it can go into production at its Treasure Mountain property.
It's very well structured and also tightly held and currently has less than a $45M market cap. Once it gets going, management expects to produce 2 Moz/year. That would be very significant for this new tiny company relative to its market cap. We think there's some good near-term upside with very high leverage to rising silver prices. A move in silver above $40/oz could be a second major catalyst for Huldra Silver. Finally, the cash flow from production will enable the company to invest in developing and expanding the resource at Treasure Mountain while maintaining the share structure."
Share structure
Huldra is also Chris Marchese's #1 silver stock for 2012. From the Motley Fool blogs: "Huldra Silver - This is a story that been kep under the radar for quite some time but is looking good for at least a 2-3 bagger and perhaps a core holding in ones portfolio."
Finally, according to a Pope and Company Analyst Report, these are the top 3 shareholders of Huldra:
"Management & Board of Directors ~13% Sprott Asset Management 9.6% Coeur D’Alene Mines Corp. (CDE: NYSE) 6.8%"
Very intriguing, indeed!
I have no position in Huldra, but may initiate a position within the next 72 hours.
From a recent Seeking Alpha article, from author Jordan Roy-Byrne:
"There's one company that we've just begun covering that we really like. We met with management at the Prospectors and Developers Association of Canada (PDAC) conference. It's Huldra Silver Inc. (HUSIF.PK) and is going to be a new high-grade silver producer. It is expecting its final permit in April before it can go into production at its Treasure Mountain property.
It's very well structured and also tightly held and currently has less than a $45M market cap. Once it gets going, management expects to produce 2 Moz/year. That would be very significant for this new tiny company relative to its market cap. We think there's some good near-term upside with very high leverage to rising silver prices. A move in silver above $40/oz could be a second major catalyst for Huldra Silver. Finally, the cash flow from production will enable the company to invest in developing and expanding the resource at Treasure Mountain while maintaining the share structure."
Share structure
| Common Shares Issued & Outstanding | 33,689,300 |
| Warrants | 9,572,662 |
| Options | 2,563,334 |
| Fully Diluted | 46,325,485 |
Huldra is also Chris Marchese's #1 silver stock for 2012. From the Motley Fool blogs: "Huldra Silver - This is a story that been kep under the radar for quite some time but is looking good for at least a 2-3 bagger and perhaps a core holding in ones portfolio."
Finally, according to a Pope and Company Analyst Report, these are the top 3 shareholders of Huldra:
"Management & Board of Directors ~13% Sprott Asset Management 9.6% Coeur D’Alene Mines Corp. (CDE: NYSE) 6.8%"
Very intriguing, indeed!
I have no position in Huldra, but may initiate a position within the next 72 hours.
Tuesday, April 3, 2012
Gold Juniors Will Outperform the Next Leg
Something amazing has happened from October of 2011 until present day - The Dow has actually been outperforming gold (the HUI, the GDX and the GDXJ, as pictured below). Do not expert this divergence to last long. As you see, the juniors (GDXJ) outperformed all from 2010 to 2011, hitting $44 at one point.
The Dow and the S&P (GSPC) started the divergence early December of 2011. It is in my strong opinion that the GDX and GDXJ are in very oversold territory - both are trading near 52 week lows. And it is in my opinion that the Dow is very overbought!
In the long run, it is not even close...gold has been king.
I also believe that, whether it's in 2 months, 6 months, a year, that gold stocks will start outperforming physical, especially the juniors.
From 2005 to 2008, the GLD and HUI traded virtually side by side...the crash of 2008 changed that and GLD has outperformed since then....
I do expect them to meet again, I just do not know when. I will say this - the miners pay dividends and will most certainly be increasing them in the coming years. The miners are all pretty undervalued at the moment as well. Maybe its when people finally realize this, will the gap start to close. Or maybe when they realize the GLD doesn't really have any gold! I do believe the investment mentality on gold stocks will change, it is only a matter of time. Just keep buying at these insane valuations and buy the dips!
I am long GDX and GDXJ.
Charts courtesy of Yahoo! Finance
Wednesday, March 28, 2012
Primero Mining Posts Solid 4Q
Primero Mining posted a pretty good 4q and full year 2011 results today:
"The Company reported 2011 net earnings of $67.8 million ($0.77 per share) with adjusted net earnings of $28.3 million ($0.32 per share). Operating cash flows(3) were $80.2 million ($0.91 per share)."
For the 4Q: "The Company earned net income of $36.8 million ($0.42 per share) in the fourth quarter of 2011, compared with net income of $6.9 million ($0.08 per share) in the fourth quarter of 2010 due mainly to the impact of the APA filing and the resultant recovery of income taxes retroactive to the date of acquisition of the San Dimas Mine." I do expect this filing to be ruled in favor of Primero at the end of this year.
A production decision to expand the San Dimas mine will be made in the 3Q. Primero currently trades at only $2.50 with a market cap just over $200 million. They are expecting upwards of $90 million in free cash flow for 2012 - Can you say undervalued?
I am long PPP.
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