We went through our notes and thoughts on many of the company we visited at the NY Hard Assets Show last week and recorded some of the most pertinent sections for posterity. We tried to separate the discussion by company and have posted individual videos (more like audios) for each one. Below we’ve stitched the content back together in order to create a compendium all in one place. We apologize for the audio quality; we are still experimenting to find the best software and equipment. Hopefully there is some useful information in these vignettes not only about the companies but also how we analyze and approach our investment decisions. Questions on any topic that is not clear should be left in the comments section below or in the individual vignette posts.
Aurcana Corp. (TSX-V: AUN; Pink Sheets: AUNFF)
The above video also has some quick thoughts on Great Basin Gold and Gold Resource Corp. towards the end.
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Astur Gold (TSX-V: AST; Pink Sheets: ATRGF)
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Condor Resources Plc (AIM: CNR)
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Darwin Resources (TSX-V: DAR)
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East Asia Minerals (TSX-V: EAS; Pink Sheets: EAIAF)
The fund we could not recall in the above video was Forbes & Manhattan.
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Esperanza Resources (TSX: EPZ; Pink Sheets ESPZF)
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First Majestic Silver (NYSE: AG; TSX: FR)
For those who are curious about where the Silver Producers stand against one another, here’s our valuation range chart assuming an 8% discount rate and current metal prices.
Obviously there are lots of caveats for the above chart that we don’t have time to go over here, not least of which that a lot of the financial and operating data needs to be updated…and in most cases that is going to lower the target range given cost inflation.
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Global Minerals (TSX-V: CTG; Pink Sheets: GMLFF)
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Great Basin Gold (AMEX/TSX: GBG)
The above video was clipped short by a few seconds, but nothing critical was left out.
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Lupaka Gold (TSX: LPK; Pink Sheets: LPKGF)
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Mawson Resources (TSX: MAW; Pink Sheets: MWSND)
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Miranda Gold (TSX-V: MAD; OTCBB: MRDDF)
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Montero Mining & Exploration (TSX-V: MON; Pink Sheets: MXTRF)
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North American Nickel (TSX-V: NAN; OTCBB: WSCRF)
Includes brief discussion of VMS Ventures which owns substantial stake in the company and probably offers a lower-risk opportunity for exposure to potential for major new nickel discovery in Greenland.
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Primero Mining (NYSE: PPP; TSX: P)
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Red Eagle Mining (TSX-V: RD; Pink Sheets: RDEMF)
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Silvercorp Metals (NYSE/TSX: SVM)
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Solitario Exploration & Royalty (AMEX: XPL; TSX: SLR)
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Sunward Resources (TSX: SWD; Pink Sheets: SNWRF)
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Tasman Metals (AMEX: TAS; TSX-V: TSM)
Disclaimer: We own several of the above companies (Darwin Resources, East Asia Minerals, Great Basin Gold, Mawson Resources, Silvercorp, Tasman) and we do not receive compensation for our reporting or commentaries from any party. Aurcana, Mawson, Silvercorp and Tasman are Institutional subscribers of Metal Augmentor. This is not investment advice, which you should seek from a licensed investment professional.
Watching at the comparative chart of silver mid-tier producers it is difficult to believe that the MAJORITY of them is MORE expensive than their base case value. So the bottom could still be far away?
I noticed that the “our portfolio” overwiev and holdings sections are featured to everybody, is it an error as I think or is it wanted?
@Giuseppe
I’m not surprised about the silver producers. They have always as a group tended to trade at a premium to their discounted cash flow valuations. There just doesn’t seem to be as much “value investor” appeal in the silver space, but that has always tended to be the case. This does not mean there is lack of opportunity and given that most silver producers are probably looking at $15/oz+ costs they are highly levered to higher silver prices…more so than most gold producers which I would expect now generally trade below if not far below their base case valuations.
Good catch on the “Our Portfolio” section. Sometimes the “member only” setting is inadvertently toggled off when pages are edited.