Silver Stock Report #10

Silver Stocks–Comparative Valuations  
Weekly Report #10 by Jason Hommel
The Silver Stock Report

Friday, Nov 21st, 2003

This week’s report lists 86 silver stocks.  There are 32 silver stocks that list reserves, resources (and exploration potential.) which I calculate by using my “ounce in the ground” formula.  There are 30 explorers.  There are 24 additional silver stocks with incomplete information.

If you are an Accredited or Sophisticated investor and want information I may find out about private placement opportunities in some of the very best silver stocks in my opinion, (This is not a solicitation for any stock, and I’m not brokering any securities) email me with PP in the subject field:  

If you want to receive an email notice of when and where this FREE weekly report is published, sign up at  Anyone who signs up will also get a FREE e-book that explains the bullish case for gold and silver.  Please email your family and friends, and urge them to sign up, too.  

Price of silver is $5.27 as of Friday, 2:30 PM West Coast US, which was used to calculate the following figures. The CAN $ / US $ conversion factor is .7679.  I will use .77 for ease.

Stock Symbol / Silver oz. “in ground”** for 1 oz. silver’s worth of stock. / additional comments (EXPT is “exploration potential”) 

  1. HL                                     .50 –current producer
  2. CDE                                  1.3  –current producer
  3. IPOAF.PK                         1.9  –current producer
  4. GRS  GAM.TO                  1.9   –current producer
  5. MAI.V  MNEAF.OB          2.6    –just raised $6.6 mil, exploring for more silver. 
  6. MFN  MFL.TO                  3.6  –62% of the value is in gold; (gold bonus)
  7. SIL                                     4.0  –large zinc bonus, low grades.
  8. * CFTN.PK                       5.1  — (51 EXPT)
  9. * CZN.TO  CZICF.PK      6.0  –high grades can mine at profit, low start up costs
  10. FSR.TO                              5.6  –current producer
  11. TM.V  TUMIF.PK TUY     6.8 — (13.7 EXPT) bonanza grade silver discovery late Nov. 2003
  12.  PAAS                                  6.9   –current producer
  13. KBR.V                                7.8
  14. WTZ  WTC.TO                   8.1    — (35 EXPT)
  15. MGR.V  MGRSF.PK          8.5
  16. APLL.OB                            8.6 –gold bonus, production starts soon.
  17. GQM.TO  GQMNF.PK      8.8
  18. MR.TO  MRB                     9.46  — + 72% gold bonus, + big copper also. 
  19. SSRI                                    9.5 –multi-property company, understands silver story
  20. MMM.TO                           12.8 –I still need to confirm.
  21. FAN.TO  FRLLF.PK           13.8  –(23 EXPT) low grades, silver 1/3; also gold & zinc.
  22. ASM.V  ASGMF.PK           14.3 –owns 49% of the Avino mine. + 4 other silver props. (silver bonus)
  23. ADB.V                                 14.3 –actively expanding resources. (Huge gas bonus)
  24. * SRLM.PK                         14.6  –(23 EXPT) near the Sunshine)
  25. * SVL.V  STVZF.PK           14.7  –(27 EXPT) –growing resources; acquiring silver properties.
  26. DNI.V                                  15.2  –exploring Clifton’s property.
  27. * EXR.V  EXPTF.PK           17  –significant zinc bonus 60% zinc, 25% silver
  28. MAN.TO  MMALF.PK       17.4  –Protests in Peru hurt the price.
  29. ECU.V                                  18.52  –50% gold bonus
  30. * MNMM.OB                       21.4  –60% copper bonus (low grades), start up ~ $250 mil
  31.  HDA.V                                 23   –very tiny, no debt, zinc bonus.
  32. UNCN.OB                            52.7  –lease expiring mid 2004; risky

* = I own shares

Explorers (by market cap):

  3. VGZ VGZ.TO   15 –significant gold bonus (almost half of “silver equiv” are gold)
  5. MCAJF.PK     10.2
  6. * CDU.V  CUEAF.PK  45-76 “exploration potential”
  8. MAG.V
  9. TVI.TO  TVIPF.PK  –current producer of a dore silver bar 96% silver, 4% gold
  10. CAUCF.PK
  11. * NPG.V  NVPGF.PK   40-188  “exploration potential”
  14. MMGG.OB
  15. IAU.V  ITDXF.PK     15
  17. * GNG.V
  18. BGS.V
  19. NJMC.OB
  22. EXN.V 5.22              
  23. SHSH.PK
  25. LEG.V
  26. SPM.V
  27. BBR.V
  28. * CEV.V CVEEF.PK
  29. ROK.V
  30. ITRO.OB

* = I own shares
** = “in ground” counts all “silver oz. in the ground” as the same, but they are NOT EQUAL.  Some are more certain and others are more speculative.  Some are higher grades, some are lower grades.  They range from most certain to least certain such as: “proven & probable reserves,” “measured, indicated, inferred resources.”  This single number next to each stock symbol above represents the approximate number of ounces of silver in the ground you are buying title to when you invest the equivalent of one ounce of silver by buying shares in the company at current prices.  (It does not include zinc, or copper, or lead, but it does include gold at a 1:10 ratio of gold:silver.)

To quickly “tab” down to the company you are interested in, note the symbol. Then hit “control-F” to “FIND” the symbol below. 

WEEKLY COMMENTARY (All new in this section):

Excellent article:
“Beware the Chartist: He Brings You False Science”

Foolish article:
“How I went from being a silver bull to a silver neutral”

The author asks several questions which I shall answer.

1.  Where is the supply of silver coming from to keep the price low, he asks?  Not government supplies, he says.  Not true.  Government has been a constant seller of their silver stocks, and will soon turn buyer, if they have not already done so.  In addition, China has been a big supplier of silver to the market, which may reverse as their industrialization continues, since industrial demand consumes a lot of silver.

He also questions that nearly unlimited COMEX short selling can be a manipulative force, when over 800 million ounces of silver exist in paper contracts when there is only 60 million ounces available for delivery.  Incredible!  He displays a complete lack of understanding of short selling, and paper promises that potential investors are fooled into accepting rather than the real silver.  If the paper longs are fooled, as I contend, then this guy is fooled even worse.

2.  He does not believe silver can be used money, and thus, there will never be monetary demand.  Ridiculous.  One of the forms of silver you can buy is in the form of money: US coin dated 1964 or earlier.  

3.  He snorts about a “spike in silver being inevitable”.  I do not believe the silver bugs are preaching about a coming spike.  Ted Butler preaches about a long term high price, lasting over a generation.  I agree.  There will be no spike.  Silver will move up, and stay there for a long, long time.   The industrial use guarantees it.  The supply demand gap demands it.  The lack of supply will sustain it.  And monetary demand will be the fuel on the fire that will make sinners repent.

He neglects to realize that if silver moves up, monetary demand for silver will grow, not shrink, as he asserts.  Monetary demand for silver is a positive feedback loop creating further demand as paper currency crashes to zero.

4.  Yes, silver is difficult to invest in, because it is bulky and weighs a lot for institutional investors.  A multi billion dollar fund cannot buy silver though, not because of bulk or weight, but because that much silver no longer exists, only 59 mil oz. does, and at $5/oz., that’s a miniscule $312 million!

He asks, “As for people like Warren Buffet and Bill Gates buying into the metal – who really knows if that is nothing more than rumors”?

I know.  Here are the links, the first, thanks to “kazvestor”:

This link lists “Cascade Investment LLC” as holding 9.79% of PAAS:
A press release from PAAS in 1999 stated, “Pan American Silver Corp. (TSE: PAA; NASDAQ: PAAS) announces the addition of Michael Larson to its Board of Directors. Michael Larson is the investment advisor to William H. Gates, III. On September 28, 1999, Cascade Investment LLC, Mr. Gates’ investment entity that is managed by Mr. Larson, filed a notice that it had acquired a 10.3% interest in Pan American.”

General Commentary on Silver (slightly modified from last week):

The following is a “must read”:  Ted Butler’s best ever explanation of how silver is manipulated lower than it should be.

Sign the silver petition to stop the manipulation at the COMEX:

Ted correctly points out that a lower price creates excessive demand from consumers.  However, what Ted Butler does not point out, and neglects to mention, is that a perpetually low price also creates lack of demand from investors who are “trend investors”.  

To scare away investors–that is the entire reason silver is manipulated in the first place.  Only the trend investors can be deceived.  The problem is that nearly everyone is a trend investor.  So few investors understand value.  If people knew the facts and used their brains, the available above-ground refined silver would be gone by tomorrow, and the price would be well over $20/oz.  But don’t trust me, follow the urls and check the numbers:

$33,000,000 mil: world bond market yr end,’01:
$20,200,000 mil: U.S. bond market, yr end, ’02:
$11,700,000 mil: U.S. stock market, yr end, ’02:
  $9,797,000 mil: U.S. annual GDP, 3rd q.’03 est.
  $8,835,000 mil: M3 (money in the banks) Oct. ’03
  $2,212,000 mil: U.S. annual budget 2003 
  $1,860,000 mil: world gold, 145,000 T @ $400/oz.
     $274,000 mil: Market Cap of Microsoft
     $180,000 mil: debt of Ford Motor Co.
     $140,400 mil: US gold, 8117 T, @ $400/oz.
       $90,000 mil: all the world’s gold stocks (estimated?)
         $7,000 mil: all the world’s silver stocks (est. from this list)
            $312 mil: 59 mil oz. of COMEX silver

What do those numbers really mean?

For a while I was using M3 and dividing that by the US gold (261 million ounces), which implies the us dollar is 84 times more valuable than it should be, and that gold should hit $33,850/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 $111,111/oz. for gold.  At $400/oz, this implies that US bonds and paper currency is 278 times more overvalued than gold.

Gold is overvalued relative to silver, because at current prices, it takes 75 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 75 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, 278 x 75 x 20,  You will see that bonds and currency are overvalued relative to select silver stocks by a factor of 416,666 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 416,666 times more than they are worth today.  By that time, you should definitly sell the silver stocks, and buy gold.

Can silver stocks really appreciate so much? Is there historical evidence for such a crazy thing?  Yes. 

“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 halted.  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, it is about 60% or more of the value is in gold.
3.  Buy a fairly large cap silver stock, with fairly large volume, that is still fairly cheap on the list.  SSRI is probably the best candidate, the next might be PAAS.  


The sheer stupidity of big money not recognizing the value of the world’s remaining silver is utterly shocking to the rational mind.  Clearly, bond holders are utterly deceived, and totally unaware of the situation.  All my readers should understand and know that bonds were originally invented to suck the capital and money (gold and silver) away from the people.  Bonds today are a paper promise to repay paper.  What a con game!  Are bond holders conservative and safe?  No, they are fools!  There is nothing safe about holding a paper promise to receive more paper when we have been experiencing hyperinflation for the past two and a half years!  

See my prior essay, “Inflation & Deflation During Hyperinflation”

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 the 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!

See also my prior essay, “The Moral Failures of the Paper Longs”


On November 23-24 I will be at the San Francisco Gold & Precious Metals conference, which is enjoying record-breaking pre-registration.
For details on the show, (free, but you need to register)


How bullish am I on silver?  Think: “75 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 75 times better.  Currently, the ratio is 75 ounces of silver can buy one ounce of gold or 75:1. 

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.

For a list of bullion dealers:
The Silver Stock Report

For a list of Brokers that handle Canadian issues and/or pink sheets:

To learn how to track the stocks on this list at yahoo: (updated this week to ~120 symbols)

To learn All about Canadian law, 43-101, about reserves and resources:

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 may have made mistakes. I probably did. I’m human. I have collected the information from public sources such as company web sites and public information found at to get the stock prices. This report in no way guarantees the accuracy of the information below, since the information may change at any time. The number of outstanding shares can change as a company engages in new share issues to raise more capital through private placements, or if outstanding warrants (and options) are exercised and converted into shares, or if shares are bought back. Shares can be consolidated, or split. The number of ounces of silver in the ground can also change, as these are often only estimates. The number can also change up or down, depending on drilling results.

This report is not investment advice.  This report contains information that may or may not be up to date, and may be inaccurate.  I urge you to contact the company and do your own research to verify the information contained in this report.

This report is not an offer to buy or sell any securities.  I am not a broker.  Only your broker can buy or sell securities for you.

I urge you to consult with your investment advisor to determine whether these kinds of investments are right for you.  

I also caution you to be aware of your investment advisor’s advice, they are sometimes paid to push things like mutual funds, bonds and other securities that may not be in your best interest to buy.  Some investment houses are short physical metal, and thus, they may attempt to strongly discourage you from buying precious metal or precious metals investments.  I believe that the propaganda machine in support of frauds such as bonds and the dollar is so strong, that they may even believe what they say when they give bad advice to avoid the safety and protection of precious metals.  It is most likely that they simply do not understand the precious metals market as well as you do.

All total estimates of “ounces in the ground” can vary widely. There are “proven and probable reserves” which are the highest category of certainty which is obtained through many drill holes, and then at the least accurate, there are “inferred resources” which are hardest to estimate. Additionally, every miner always has “more silver properties that need to be explored, which probably contain more silver”. For the purposes of this report, I have added all those numbers together. It is believed that all these “ounce in the ground” estimates can be profitably mined at $5-6 per ounce silver, or lower. Thus, I believe that when silver trades for $15/oz. or above, that all of these ounces can be mined at a substantial profit. 

I may be wrong. (I probably make mistakes in every article, and there have been updates and corrections made each week, especially as prices change.)

Mining is a risky business. You need to be willing to sustain a total loss of your investment for various unforeseen accidents. Silver stock companies can do stupid things to shareholders such as take on debt, or issue more stock at too low prices which reduces the percentage of the company you may own (dilution). Yet, they need to issue shares to raise capital for drilling, and then an even bigger dilution to build a working mine. They may sell YOUR silver too cheaply, or worse, hedge the price of YOUR silver just as it begins to go up if they lock in a price which then proves to be too low if the dollar is destroyed. Mining is a risky business as estimates of assets in the ground can change. There is political risk and environmental risk. They can’t franchise the business, are stuck in one location, are subject to government confiscation, or taxes, or union wage negotiations, and corporate looting.

Do your own research.  Be responsible for your own investment decisions.  Again, please, before investing in a mining company, call up the company, and speak either with the CEO or the Investor Relations contact person. 

So, at the very least, check the company web site, read the annual reports, check my numbers, check my math, and email the company. That’s what they are there for, to answer your questions, and to speak about the opportunity of the company. Don’t trust everything you read over the internet. I am a biased source. I own silver mining stocks. And I’m not a broker, nor an investment advisor. I’m just a private investor trying to make sense of this crazy world, and sharing my information and thoughts on silver companies. 

This report may be copied, and transmitted by other people, and may become outdated by the time it reaches you.

I can’t tell you how you should invest your money, of course. The reason is that I don’t know how convinced you are of the silver bull market, nor do I know how soon you will be needing the money back, so I don’t know how long you can wait to see results, nor do I know how much liquidity you need. Nor do I know the size of the money you have to invest. It is very hard to invest large quantities of money in a small market cap stock. 

That being said, my investment strategy seems to be working for me, so far. And so, here is how I have valued the following silver companies to make my own investment decisions. 

(Market cap is always converted to US dollars and denominated in US dollars because I divide by ounces of silver, which are also denominated in dollars)

BHP Billiton Ltd (BHP)
–‘produces 40 mil oz. silver annually from one mine’
Additional comments:  unfortunately, BHP has a 49 Billion market cap, so we can’t buy BHP for the “silver exposure”.  IE, $49 Billion / oh, say, 1000 million?????= $49/oz.

Hello?  BHP?  By all means, keep mining the silver if you want the silver exposure, and want to be in the silver busines.  But don’t sell the silver.  Keep it.  Let the profits of your entire company accrue as an increasing physical supply of physical silver.  In fact, do as Buffett did, and buy more silver if you can.  It would be infinitely easier for you to buy silver from yourself than it would be to buy 40 million ounces of silver from the COMEX, which, today, might be impossible.  

Grupo Mexico SA de CV (GMBXF.PK)
“Grupo Mexico ranks as the world’s third largest copper producer, fourth largest producer of silver and fifth largest producer of zinc.”

Compania de Minas Buenaventura SA (BVN)
Minas Buenaventura 
– Peru´s largest publicly traded precious metals company 
–produces over 10Moz of silver per year
–way too expensive for the silver alone: 3.6 Billion market cap.

Phone: (208) 769-4100
109 mil shares @ $7.15 share 
$784 million Market Cap (MC)
near zero debt, cash: $113 mil
(est. 2003 production 9 mil oz. silver) 
(the La Camorra gold mine, 412,000 oz gold.) … (x 350/5 = 28 mil silver equivalent oz.)
San Sebastian silver mine, (proven & probably reserves) 8.7 mil (produced 3 mil)
the Greens Creek silver mine (proven & probably reserves) 31 mil (produced 3 mil)
the Lucky Friday mine (proven & probably reserves) 14 mil. (produced 2 mil)
Total silver = 53.7 million oz.
Plus 412,000 oz. gold x 10 = 4.1 mil oz silver equiv.
Total silver equiv. reserves = 57.8 mil oz.
(Since my method values silver in the ground as a key asset, I should also value the cash as a “silver asset” which will be “marked to market” if silver goes up, and cash goes down.  If HL is smart, they should be able to turn the cash into increased “silver exposure” either through buying silver properties, silver equities, or physical silver.)
($113 million cash /5.39/oz = 21 mil “silver equiv” oz.)
(Since silver moved up last week, HL’s 133 mil in cash lost 1.3 million oz. of silver value.)
21 + 53.7 = 74.7
$784 mil MC  / 74.7 mil “oz.” = $10.49/oz.
You get “approx” .50 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments: HL has more oz. than listed in the “proven & probable” category used in this calculation. Vein mining makes reserve calculations difficult, and HL has rarely had more than about a 3-4 year picture of reserves ahead of them.   

I decided to count their papar cash as if it could be silver, but it still does not help boost their valuation much.  They are still the most expensive company on the list.  If HL bought 22 mil oz. of physical silver, they might break the back of the silver market, and significantly boost their own profitability. I think HL  investors are paying way too much for HL, and the company insiders seem to have no idea their stock is so overvalued.

Another way to check the value of HL is too look at profit, since they are active miners. They mine 9 million ounces of silver a year. What’s the profit on that today? Very little.  I think they had a loss in the 3rd quarter.  Total “cash costs” are $3.68/oz. (and that includes gold credits) Profit at $5.05/oz. is $1.37/oz x 9 mil oz. annual production = $12.3 million annual profit. Give a PE of 666/12.3 = 54. That’s a very high P/E, which means HL is very expensive. 

I wrote an article comparing HL to CZN:

Silver Price Expectations of Silver Stock Investors – 30 October 2003

Why does HL hold $113 million dollars worth of cash at the beginning of a bull market in silver?  It makes no sense to me.  Cash is trash in inflation.  They should be buying physical silver, or, use that cash to buy other silver resources in the ground, like the undervalued silver stocks.  

210 mil shares (Issued 32 mil new shares late Oct. 2003)
@ share price $4.43
$930 mil MC
cash $38 mil
San Bartolome (Bolivia) reserves 146 mil silver
Silver Valley Silver reserves 32 mil silver
Rochester reserves 43 mil silver
Cerro Bayo reserves 3.7 mil silver
Total: 224.7 mil silver
(to Produce 14.6 mil oz. silver in 2003)
$930 mil MC / 224.7 mil oz = $4.13/oz.
You get “approx” 1.27 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments: CDE issued new shares last week.  CDE continued to lose money in third quarter 2003, a loss of 10 cents/share, and they realized low prices for silver sales, $4.77.  I believe they have hedged their gold production at low prices. 

Again, their listing of ounces is in the “reserves” category (more certain) not the “resources” category, which is less certain.  They probably have “resources” but like HL and Industrias Penoles, they give no estimates.

CDE and HL moved up in price significantly this week.  Most likely due to new investors who know very little about how overpriced these two NYSE listed stocks really are, but all they may feel is that “silver stocks will outperform silver”.  But I don’t think there is any reason for CDE and HL to continue to outperform silver from this point at today’s stock prices.  These two stocks have already had their run up.  The johnny-come-latelies who bought these stocks last week will get some benefit, but not as much as if they had done their homework, or bought physical silver, in my opinion.

397.5 mil shares outstanding (2002 annual unchanged since 2001)
@ $2.95/share
$1,172 mil MC
419 proven and probable reserves of silver (from 2002 annual report on website)
$1,172 mil MC / 419 oz. silver = $2.79/oz.
You get “approx” 1.88 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.  

78.5 million oz. silver produced by the metals division in 2002, and 1 mil oz. gold.

I think Industrias Penoles should stop mining silver if they are doing it at a loss.  Basic econ 101, right?  Don’t engage in uneconomical activity.  Perhaps they have a small gain this year with improved prices?  Regardless, they should realize that silver in the ground is an asset, and also that silver in the hand is an asset.  If they do make a profit, I hope they decide to keep the form of their profits in silver, or at least, pay out a dividend in silver.

Their oz. numbers are “proven & probable reserves”, which is much more certain than most of the others which are mostly “inferred and indicated resources.”  They undoubtedly have “inferred and indicated resources” in addition to the “proven & probable reserves,” I just could not find any info on that at the website or in the annual report.

Phone: (902) 468-0614
fully diluted 52 mil shares
@ share price $5.30
$275 mil MC
“With the drilling of over 179 holes totalling over 33,700-metres, the resource calculation contains 761,000 gold ounces and 38.2-million silver ounces in the measured and indicated categories and a further 925,000 gold ounces and approximately 45-million silver ounces in the inferred category.”
Total gold: 1.7 mil oz. x 10 = 17 mil silver equiv.
Total silver: 83 mil oz. 
Total silver equiv = 100 mil oz.
$275 mil MC / 100 mil oz. = $2.75/oz.
You get “approx” 1.91 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments:  At current prices of a 70:1 silver:gold ratio, about 58% of the company is in gold, 41% silver.  Gold equiv oz. is about 3 mil oz. total.  Cash cost is $85/oz.  Life of mine is 7 years.  At $385 gold, should produce $900 mil oz. profit over the life of the mine. Not bad for the current $182 MIL MC… even though the “silver in the ground” cost is currently high.  Therefore, my valuation method undercounts the gold componant, and undercounts current producers.  But that is intended, however, because I believe silver has over 7 times the potential as gold.  My comparison method does not say that the companies that cost more can’t bring a reasonable profit to the shareholder.  My comparison method does tend to say that the profits will be higher for the silver companies that cost less. 

There’s just not a lot of silver exposure here for the price.  But with the high grades, and “gold bonus” the risk is lower, and the profits should be here for those who want more safety in a stock pick.

And they are “rapidly expanding” resources & reserves with round-the-clock drilling of 4 rigs.

Email: IR Tel: (604) 689-7017
37 mil shares outstanding on February 5, 2003
finncing to be closing shortly, raised $6.6 mil CAN.
@ 30 cents placed..
+22 mil shares + 1/2 warrant
59 mil shares outstanding
73 mil fully diluted as of Nov. 2003
@ share $.55 CAN x .77 = $.42 US
$30.9 mil MC
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:  27.5 mil oz silver
Estimated:  27.5 mil oz. “silver equiv” of gold.
/ 6 = 4.58 mil oz. silver equiv at 10:1 ratio.
Total: 27.5 + 4.6 = 32 mil oz. silver equiv. (x .49 = 15 mil oz.)
They will be exploring for more.
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.
$30.9 mil MC / 15 mil = $2.06/oz.
You get “approx” 2.55 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments:  Between weekly reports 7-8, I did not know how much of the 55 mil oz. was gold or silver.  Then, I got better information from the company.  About half was gold value, half was silver value at 60:1.  So, I count gold less.  Then, I learned the deposit was only 49% owned.  Then, I leared about the nearly 50% dilution with the new financing.  I have never seen a company valuation report change so quickly on this report, from about 20 oZ. to 3 oz.  

Lesson:  Do your own due diligence (research), and beware of stock dilution.

Maybe I should re-classify min andes as an explorer?

31 mil shares 
@ $8.86
$274 mil MC
measured & indicated 2.3 mil oz gold, 116 mil oz. silver inferred 1.1 mil oz. gold, 40 mil oz. silver
Totals: 3.4 mil oz. gold, 156 mil oz. silver. 
~ silver conversion = 3.4 x 10 = 34 mil silver equiv + 156 mil oz. silver = 190 mil oz. silver 
(only 40% is silver, the rest gold)
$274 mil MC / 190 mil oz. = $1.44/oz.
You get “approx” 3.64 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments: Well over half the value here is the gold, again, which my method significantly undervalues due to my bias in favor of silver.  At 385/oz gold and 5/oz silver, $1309 million (62%) is in gold, and $780 million (37%) is in silver.  

36.6 mil shares 
@ $16.25/share
$595 mil MC
San Cristobal (Bolivia) (proven & probably reserves) 454 mil silver
(forecast capital costs for construction to total approximately $435 million)
(Produced zero silver in 2002)
7.8 billion pounds of zinc, and 2.9 billion pounds of lead
$595 mil MC / 454 mil oz = $1.31/oz.
You get “approx” 4.02 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments: Apex silver has come down significantly from a high of $18/share in early August, and primarily has institutional investors.  

Apex is still way too expensive–especially since they are not producing.  But they do have “high grades”, but a part of the high grade story is that this one has a lot of zinc. That’s an added bonus that is not factored in to my method of valuation. Several writers have been saying zinc prices will be heading up soon, so that’s another bonus. Plenty of zinc is especially good if zinc is moving up in price.  And, they are not mining now, but are waiting for higher silver prices. That’s also a plus. The management also seems to understand that silver will move upwards a lot. Another plus. Finally, George Soros, Billionaire, owns a bit of this one, just under 10% I read recently. Another plus, in general, for the silver market if Billionaires are paying attention to it.

* CFTN.PK  (I own shares)
801-756-1414   (303) 642-0659 Ken Friedman
45 mil shares fully diluted  (Oct. 2003)
@ $1.20/share US
$54 mil MC  –source of 100 mil oz. resources est.
“A previous geologist has talked about a possible resource of 1 billion oz. of silver, and 5 million oz. of gold.”
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 sold up to 50% of the project to Dumont Nickel for $5 million to be paid over time. 
50% x 105 = 52.5 million oz.
50% x 1000 = 500 mil oz. “exploration potential”
$54 mil MC / 52.5 mil oz. = $1.02/oz.
You get “approx” 5.12 ounces in the ground for 1 oz. silver.

Additional comments:  Note the “exploration potential”. This is about 10 times cheaper, like 10 cents/oz, or you “might” get 51 oz. in the ground for 1 oz. silver.

I was complaining about the fact that I did not buy this one as it was rising.  Well, I finally bought more at $1.35 last week on Thursday.  I bought because of Clifton’s 25% ownership of the biotech firm that makes a colloidal silver.  They released a press release that downplayed a letter they received from a person in US Homeland security that approved their product.  This may lead to a large government order, which could result in profits of 30-50 cents/share.

The main reason I think this stock kept going up was their exploration potential.

For more info on what’s going on with Clifton, see, JV partner.

Clifton 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.

I own CFTN.PK.  

* CZN.TO / CZICF.PK –(I own shares)
45.1 mil shares (fully diluted) as of Sept., 2003 
65 mil shares fully diluted when the Oct 16th Private placement is filled.
@ Share Price $1.23 CAN x .77 dollar/CAN = $.95 US
$61.5 mil MC
not mining ($20 mil needed to finish & start the mine) ($100 mil worth of mining infrastructure in place!)
~70 mil oz. (IN ZONE 3 only!! of 12 zones! This company seems to be greatly under-reporting their silver reserves. Their 18 year mine plan consists of zone 3 only, but there are 12 mineralized zones on the property.)  Really, perhaps well over 100 mil oz. silver.
$61.5 mil MC / 70 mil oz. = $.88/oz.  
You get “approx” 5.99 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments:  CZN likely has much more silver in the ground, and has good profit potential.  I wrote an article on Canadian Zinc on Oct. 23 that appeared here:  I concluded with a share price target of between US $2.04/share and US $4.42/share.

I wrote another article comparing HL to CZN here: 
Silver Price Expectations of Silver Stock Investors

I believe Canadian Zinc will have more profit than Hecla Mining, and will also have significantly more exposure to rising silver prices.  

I would like the company to privide an estimate of the silver on the rest of their properties, but their mine plan consisted only of zone 3 at the moment.  The rest must remain “exploration potential” for now.

To get the mine up and running, they might be able to pay back such debt within 2 years, but I would hope they would avoid debt, and raise the capital as the share price begins to approach $2/share or more, and do a final public offering between $2-4/share.

I note several very, very positive things about this company. 

1. This was the mining operation set up by the Hunt brothers, the major silver investors in the silver spike to $50/oz. in 1980 who were destroyed 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 get the mine running. They were 90% complete when bankruptcy hit. The value of those buildings is now $100 million, and the mine only needs about $20 million (CAN) ($15 mil US) to get the mine up and running. That’s much cheaper than other cost estimates of other operations.
2. The 70 million oz. of silver estimate is for zone 3 only. But there are 12 zones on the property. The zone 3 estimate is for a 10 year mine plan that involves mining zone 3 at current metals prices. The company can mine, at a profit, at current silver and zinc prices.
3. High Grade ores:  
12% zinc/ton; = 240 lbs. zinc/ton x 42 cents/lb. = $101/ton for the zinc.
10.1% lead/ton = 202 lbs. lead/ton x 27 cents/lb. = $55/ton for the lead.
6 oz. silver/ton x $5.11/oz. = $31/ton for the silver.
0.4% copper/ton = 8 lbs. copper/ton x 90 cents/lb. = $7/ton for the copper.
Total: $194/ton.
4.  My method of valuation:  If I counted the zinc as silver, then the price of this company would be something like four times cheaper than it is based on my “valuation method”.  If I counted the  lead as silver, then this company would be about 4-5 times cheaper. 
5.  Zinc and base metals prices are moving up strong.  Check for updates.   

Update: The recent private placement was just expanded to the maximum size allowed by the shareholders, because it was heavily over-subscribed.  Sophisticated and Accredited investors wanted in on this one at .50 cents–and judging by the recent share price, they were not mistaken!

I own shares of CZN.TO  

37 mil shares 
@ share price $1.38 (CAN) x .77 dollar/CAN = $1.06 US
$39 mil MC
From the Company’s main page at their url:
“As at December 31, 2001, First Silver’s mineable reserves were 12 million ounces of silver and inferred resources totaled 30 million ounces of silver. The mine is developing a 1000 plus meter exploration drift to upgrade currently identified inferred resources to mineable ore reserves and to discover new reserves.”
12 + 30 = 42 mil oz.
$39 mil MC / 42 mil oz. = $.94/oz.
You get “approx” 5.6 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments: This is a high grade, producing miner.  The high grades are a plus.  Some say that a producing miner is also a plus.  They are also actively exploring, another plus.

Nick Nicolaas IR (604) 657 4058
16.2 fully dilutted shares (Oct. 21, 2003)
@ share price 1.55 CAN (x .77) = $1.19 US
$19.27 mil MC
20 mil oz resource up to 50 million oz. silver potential but needs to be explored and drilled. 
500,000 gold resource x 10 = 5 mil oz. silver equiv. 
Debt free, 2 projects in Mexico.
$19.27 mil MC / 25 mil oz. = .77  ***I’m using this number***
$19.27 mil MC / 50 mil oz. = .38  (exploration potential)
You get “approx” 6.84 ounces in the ground for 1 oz. silver’s worth of stock.
Exploration Potential: 13.7 plus more after bonanza silver discovery late November.

Additional comments:  Tumi roared up 29% on Nov. 20, followed by a 27% gain on Friday Nov. 21, after the company announced a bonanza grade silver discovery after drilling.  This should significantly increase the numbers for their “exploration potential”, but no word yet on the increase.  It takes time for the geologists to estimate all of that apparantly, but investors went crazy over it immediately.  

Tumi is focused on becoming a “premiere junior silver explorer.”  It’s good to see the focus is in the right metal.  Doing active drilling to prove up their projects and increase “resources”.  Nick Nicolaas really understands the silver story, beliving silver has much greater appreciation potential than gold. 

Look at: Tinka TK.V (tumi’s sister company)
A pretty big gold/copper property in Peru (Tumi owns 30% of it)…  
That could mean significantly increased assets for Tumi.

52 mil shares PAAS recently borrowed $100 million in a convertable debenture deal at about $9/share.  This potentially increases the number of shares outstanding significantly.
@ $12.56 / share
$661 mil MC
10 silver properties (3 in production)
produced 7 mil oz. silver in 2001:
February 2003 presentation reported total reserves including peru stockpiles of 874.3 million ounces
earnings -$.77/share?!
$661 mil MC / 874.3 mil oz. = $.75/oz.
You get “approx” 6.97 ounces in the ground for 1 oz. silver’s worth of stock.

Additional Comments: PAAS is one of the few silver producers on this list. Thus, they are a “silver miner” as their investor relations person will painstakingly point out. The other companies who do not mine silver, but merely own silver properties and drill them, are not “silver miners,” nor are they “silver mining companies”. They are “silver properties,” or “silver opportunities,” or “silver speculations,” I guess. Ok, but that still does not justify selling silver at firesale prices, in my book.

PAAS recently went into debt in order to ramp up production. I am strongly biased against debt. But it’s a convertible debenture, so the debt can be converted into stock. They know and believe higher silver prices are coming, which is great, and their strategy is to be in solid production mode when the higher price hits. In the meantime, though, the extra production will delay the inevitable silver boom, and they are destroying shareholder value. 

(604) 669-2251
28 mil shares fully diluted
@ share price $1.10 x .77 = US $.84
$23.7 mil MC 
30 mil oz. silver resources indicated and inferred
540,000 oz. gold x 10 = 5.4 mil “silver equiv.”
$23.7 mil MC   / 35.4 mil oz. = $.66/oz.

You get “approx” 7.8 ounces in the ground for 1 oz. silver’s worth of stock.

(formerly western copper)
 Jay Oness Toll Free: 1-888-456-1112
34.3 mil shares  (Oct. 2003)
@ share price $4.40 US
$151 mil MC 
(not actively mining)
From the “SNC Lavalin Resource Calculation” March, 2003.
Indicated 158.8 mil oz. silver
Inferred   54.6 mil oz. silver
Total 213.4 oz. silver.
Total 1.94 oz. gold x 10 (at 10:1) = 19.4 silver equiv.
Got $3 mil CAN cash, no debt.  
The capital cost to get the mine going is estimated to be US $148 million
Penasquito silver/gold.  213 mil oz silver.  just over 2 mil oz. gold. from Chile/Colrado zone.  
Brechia zone will double the numbers, and infilling inferred to indicated: probably in Jan will have 500 mil oz. silver, 5 mil oz gold.
Exploration potential: 500 mil oz. silver, 5 mil oz. gold, from
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.
$151 mil MC / 233 oz. = $.65/oz.
$151 mil MC / 1000 oz. = $.15/oz. –exploration potential 
You get “approx” 8.1 ounces in the ground for 1 oz. silver’s worth of stock.
Exploration Potential = 35

Additional comments:  Note the capital cost to get the mining started: $148 million dollars.   
A friendly email came in and said that WTZ also has the following other metal resources:
3.73 billion pounds of zinc
673 million pounds of copper
1.3 billion pounds of lead

18.7 mil shares outstanding
@ share price $2.38 CAN x .77 = $1.83 US
$34 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.”
$34 mil MC / 55 mil oz. = $.62/oz.
You get “approx” 8.45 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments:  Gammon Lake is a large shareholder, 50%.  The quote above comes from Gammon’s website.  

39 mil shares
@ share price = 0.32 US
$11.7 mil MC
Total silver = 11,313,313 oz
Total gold = 802,564 x 10 = 8,025,640 oz
Total = 19,338,953 oz’s FEASIBILITY STUDY
$11.7 mil MC / 19 mil oz. =  $0.61/oz
You get “approx” 8.55 ounces in the ground for 1 oz. silver’s worth of stock.
Press releases indicate production and profitability within 12 months:

“The open pit operation to obtain the mineralized gold and silver material is expected to start in December 2003. All necessary personnel will be at the mine site by November 15, 2003. In the first 12 months of operation, the Company expects to produce 15,500 oz of gold and 330,000 oz of silver. At current prices, the silver recovered will more than cover the total cost of production in the first year.”

According to their press release they’ll generate revenue of $6 m in the first year with gold at $385. That’s $0.15 per share! Given a P.E. of 10, the stock would be fairly valued at $1.5!

51.9 mil shares outstanding
@ share price $.60 CAN x .77 = $.46 US
$24 mil MC 
“This mineable reserve is estimated to contain 1,529,000 oz gold and 24,870,000 oz silver.” –from the homepage
gold x 10 = 15.2 mil + 24.8 mil = 40 mil silver equiv.
“The estimated capital cost to the start of production is now U.S.$36 million”
$24 mil MC  / 40 mil oz. = .60/oz.
You get “approx” 8.8 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments:  My method is severely mis-pricing this company due to the large gold componant.  At a ratio of 70:1, the value of the gold and silver are as follows:  1.5 mil gold x $370/oz gold = $555 mil; 24.8 mil oz silver x $4.8/oz silver =  $119 mil.  Thus, this company, at today’s prices is 555/674 (82%) in gold and 119/674 (18%) in silver.  With values like that, it comes out relatively expensive as a pure silver play (discounting the gold as I do), but they could earn good profits, given that gold is not 10 times the silver price, but 70 times the silver price.  The interesting thing here is that the company has a historic ratio of silver to gold, at 16:1.

Ignore my method of valuation for this one, and consider this company has a “huge gold bonus” that may be worth seriously considering if you are not a hard-core silver bug like I am.  If they move to production today, then the price will be based on the profits from the gold, not by the “oz in the ground” method of valuation.  I have not done a profit estimate for this one.

Looking at the gold alone: $23 mil / 1.5 mil oz. gold = $15.33/oz. for the gold here.  But if you want a gold play, Vista gold may be better.

MRB  MR.TO (METLF.OB changed to MRB)
Ritch Hall, 303-796-0229 ext. 304
42.5 mil shares outstanding  (2003 1 Qtr report)
$1.86 US (MRB)
$79 mil MC
“The capital cost to develop the mine is estimated at $28.2 million.”
“a total resource of approximately 5.1 million ounces of gold and 91 million ounces of silver. In addition, Metallica’s copper resource is estimated at 1.9 billion pounds.”
5.1 x 10 = 51 mil oz “silver equiv”.  + 91 mil silver = 142
$79 mil MC / 142 mil oz. silver = $.55/oz.  
You get “approx” 9.46 ounces in the ground for 1 oz. silver’s worth of stock.

Additional Comments:  There is a significant “gold and copper” bonus here.  At 75:1, $375:$5, the percentage of gold to silver value is $1912 million gold, $455 million silver, or 72% gold, 28% silver, not including the copper.  At $.90/lb. copper, the copper is also worth $1710 million.  Again, my method counts silver only, and counts gold by only 10 times the value of silver, not 70, so factor in a large gold and copper bonus.

40 mil shares (Oct. 2003)
@ share price $9.50
$380 mil MC
debt free, cash: $10 mil
not mining or producing
15 silver properties
measured and indicated resources totaling 300.4 million ounces of silver 
plus inferred resources totaling 366 million ounces of silver = 666 mil oz. 
2.2 mil oz. gold. Silver equiv = 22 mil oz. silver. (22+666=688 mil oz.) 
$380 mil MC / 688 mil oz. = $.55/oz.
You get “approx” 9.5 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments:  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 to reserves, either through exploring, or through acquisitions.  This company seems to really understand the silver story, and helped to educate me as an investor.  

Fully Diluted Issued & Outstanding 23,133,623
@ $1.86 x .77 = $1.43
$33 mil MC
Located in China
gold and silver.  Don’t yet know how much of either, but a man who emailed me said 80 mil oz. silver????  I was not able to confirm that at the website.
$33 mil MC / 80 mil = $.41/oz.
You get “approx” 12.8 ounces in the ground for 1 oz. silver’s worth of stock. –I still need to confirm this.

(604) 684-6365  Erick Bertsch 
43.8 mil shares fully diluted (At Aug 31, 2003)
(plus a pp announced on Oct 31 of 15 mil units of 1 share @ .38 1 warrant @ .5 which is 30 mil new shares, to raise $5.7 million)
73.8 mil shares fully diluted as of Oct 31, 2003
@ share price $.72 CAN x .77 = $.55 US
$41 mil MC
Exploration and development in Mexico.
See also (Hunter-Dickinson) 
On 4 sulphide deposits out of 16, 29 mil ton grading 89 grams silver/t and 1.57 g gold/t.
Conversion: 89 grams x .0353 oz/gram = 3.14 oz.
RE: those 29 mil tons, they “anticipate increasing resources to 50 mil tonne range…”
3.14 oz. x 29 mil tons = 91 mil oz. silver
1.6 mil oz. gold x 10 = 16 mil oz “silver equiv”.
Total: 107 mil oz. silver equiv. 
(Exploration potential = x 1.7 = 181)
$41 mil MC / 107 mil oz. silver equiv.  = $.38/oz.
$41 mil MC / 181 mil oz. silver equiv.  = $.23/oz. –exploration potential
You get “approx” 13.78 ounces in the ground for 1 oz. silver’s worth of stock.
Exploration potential = 23

Additional comments:  
Private placement news link:

Nothing done or drilled on the property since 1999.  Why not?  Because of low zinc prices: 46% of the price of the metals was in the zinc before prices crashed…  (This one reminds me of Canadian Zinc.  They think they are a zinc company.)  The largest componant today is gold, which was surprising to Eric, the IR guy I spoke with.  About 1/3 is in silver now.

At today’s low metals prices:  
2% x 2000 lb = 40 lbs zinc x $.42/lb =  $16.8 for the zinc  (.37 to .50 lb zinc.)
3.14 oz. x $5.15 = $16 for the silver.
.055421 oz. x $385/oz. = $21 for the gold
(Assuming 100% metals recovery–which is not likely to be the case.  It may range from 60% to a higher percentage, depending on extraction methods used and the particular mineral targeted, which constantly change with technology advancements, and price changes in the metals.  By the time a mine like this gets running, perhaps in 5 years or so, things may change to allow even greater metal recovery.)

Speaking with the company, 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.

604 682-3701 — David Wolfin
10.9 mil shares fully diluted, Nov. 2003 (with the 4 mil new shares from PP)
(proposed PP in late Oct 2 mil units at $1.27 (unit = 1 share + 1 warrant at 1.58)
@ share price $2.27 CAN x .77 = $1.75 US
$19 mil MC
from: –in 1997
“How Much Silver Does Avino Have?”
“Operations at Avino’s silver mine in Mexico are both open-pit and underground. I examined the reserves and interpolated the tonnage into silver ounces as follows: 28-million ounces proven; 50-million ounces probable and 27 million ounces possible.” (Not all are 43101 compliant reserves & resources.–that is an old, third party report.)
–focus is on being silver company. A plus.
They actually have over five silver properties/projects.  I’m only have numbers to count for one, the “Avino mine”.  
= 28 + 50 + 27 = 105
Avino owns 49% of that, or 51.5 mil oz.  
-“not considered reserves under the new Canadian National Policy 43-101”
$19 mil MC / 51.5 mil oz. = $.36/oz.
You get “approx” 14.3 ounces in the ground for 1 oz. silver’s worth of stock.

Additional notes: There are 4 additional silver properties that I don’t have numbers for.  Consider this a “silver bonus”!!!

Mexican mining law once stated that a controlling interest had to be owned by Mexicans, which explains why they only have a 49% interest.  That they don’t have a controlling interest is a minus. This law has changed. The mine was operational until the mine went into temporary closure in November 2001. So there is in place an existing mine, with working infrastructure, which is a bonus.  There is a need for drilling in order to test the potential that was stated in the feasibility study.

604 628 5642 — Curt Huber– Business Development
26.2 mil shares fully diluted (as of Oct 7th., 2003)
+ up to 5.2 mil shares in private placement of Oct 17, 2003
31.4 mil shares to possibly be fully dilluted. 
@ share price $1.38 CAN x .77 = $1.06 US
$33 mil MC
–owns an option to earn 70% interest in “Miera San Jorge’s Monte del Favor property in Mexico”
“An historical resource estimate based on underground sampling at Monte Del Favor is reported at 17 million tonnes grading 0.85 g/t gold and 224 g/t silver for a contained 123 million ounces of silver and 460,000 ounces of gold.” “While this resource estimate is not fully 43-101 compliant, the Company considers that it provides a conceptual indication of the potential of the property.”
460,000 x 10 = 4.6 mil “silver equiv”.
127.6 mil oz. x 70% interest = 89.3 mil oz.
$33 mil MC /  89.3 mil oz. = $.37/oz.
You get “approx” 14.3 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments:  Prior grades hit 2-5 kilos silver/ ton. (2000-5000g/ton. 70-176 oz. ton)  Very high grades.  The project was never properly drilled with modern methods.

Admiral Bay acquired this option to own a 70% interest in this silver property in June, 2003, and the acquisition did not impact their stock price at that time at all.  Previously, they were a gas company, and they still have this other gas project, which may be more than half the intrinsic value of the company according to Curt Huber, who understands the silver story as expressed by Ted Butler and David Morgan.   My valuation method, obviously, does not give any value for their gas project, which therefore needs to be factored in as a significant “bonus”.

They are actively digging now, building a road and uncovering mineralization areas, and tracing surface veins. They will be drilling before the end of October, spending $500,000 before the end of 2003.  They have $2 million cash in the till.  

* SRLM.PK (I own shares)
7 mil shares  
@ share price $9.50
$66.5 mil MC
~185 mil oz. reserves + resource, Sunshine alone
Quote from:
“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. “
~100 mil oz. other properties: the 10 sq. miles around the 1/2 sq mile of the Sunshine (rough guess–needs to be explored) *** I use this number*** even though–these extra 100 mil oz. are in the “explorer” category.  They need to be drilled and found, although I’ve heard of estimates as high as 400 mil oz. total for SRLM.PK
$66.5 mil MC / 185 mil oz. = $.36/oz. 
$66.5 mil MC / 285 mil oz. = $.23/oz.  (exploration potential)
You get “approx” 14.63 ounces in the ground for 1 oz. silver’s worth of stock.
(Exploration potential is 22.9+. )

Additional comments:  This week, Sterling announced they were going to lease some silver properties from a neighbor, Chester.

Sterling Mining acquired the Sunshine mine. Sunshine was one of the big three: Hecla, Couer, & Sunshine. Sunshine went bankrupt. Sterling got the property a few months ago cheap, because they were quick & willing to pay cash. Other buyers wanted to do a full study before making an offer. This company’s share price went ballistic as a result. But the company is still way undervalued. Just do the math, people. I own a substantial share of SRLM.PK There were a few great articles written lately for SRLM. See the company web site, above. The best factors, I feel, are as follows:
1. The Sunshine mine is an existing mine that was mining at a profit. The company went bankrupt, not the mine. So there will be no great capital costs for start up, only minimal costs. 
2. The Sunshine sits on 1/2 sq. mile, and was never fully explored. Sterling Mining owns 10 square miles of property surrounding the Sunshine, right in the heart of silver country, the location of CDE and HL, the other two big companies at the top of this list. 
3. The management of Sunshine understands the silver story. They are on a mission to acquire distressed silver properties at today’s cheap prices. 
4. The additional share offering, if it closes, could mean 8.5 mil shares, which would mean a market cap of $37 mil. That’s a minus.  $37 / 260 = .14/oz., which is a little higher price.  Beware of additional share issues causing shareholder dilution.  

Do not confuse SRLM with SSMR. SSMR is the Sunshine mining company, which went bankrupt.  SRLM acquired the Sunshine mine.  If you want to buy the Sunshine mine, you buy Sterling Mining Company, SRLM.

I own shares of SRLM.PK

* SVL.V / STVZF.PK (I own shares)
(604) 691-1730 
15.18 mil shares outstanding oct 31, 2003
22.2 fully diluted oct 31, 2003
(just about closed a PP for a million units, 2 mil more)
24.2 fully diluted Nov. 21, 2003
(pub float: 8.93 mil, the rest is owned by insiders)
@ share price $1.35 CAN x (.77 US/CAN) = $1.04 US
$25.15 mil MC
Indicated resources of silver 30 mil oz. (SOZ.)
Projects in Honduras.  BUT…
*** discovery adds silver*** (perhaps 40-100 mil oz.) see below
new silver totals are projected to be: 70 – 130 mil oz.
$25.15 mil MC / 70 = $.36/oz.  
$25.15 mil MC / 130 = $.19/oz.  
You get “approx” 14.66 ounces in the ground for 1 oz. silver’s worth of stock.
(Exploration potential = 27.2 oz.)

Additional comments:  These additional ounces, beyoned the 30 mil oz. are “exploration potential”, and are not 43-101 compliant. 

Plus, their reserves are potentially “open pitable” which reduces costs.  They will be acquiring more silver properties with the money raised in the late November 2003 private placement.

56.4 mil shares outstanding 
@ share price $.42 share x .77 = $.32
$18.23 mil MC
*** Dumont still needs to raise and pay several million to clifton for 50% of the project.
$18.23 mil MC / 52.5 million oz. = $.34/oz.
You get “approx” 15.2 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments:  Clifton’s JV partner, doing active drilling work right now.

* EXR.V / EXPTF.PK (I own shares)
Dr. Harlan D. Meade, President and CEO  TOLL-FREE: 1-877-682-5474
81.6 mil shares fully dulted. (Oct 17th, 2003)
@ share price .35 CAN x .77 = $.27
$22 mil MC
Mostly a base metals company.  Zinc.  Also has some silver.  
From “Sheet 2” from the company:
96.6 mil oz. Silver
565,610 oz. gold x 10 = 5.7 mil oz. silver equiv.
= 102.3 silver equiv oz.
(Not all the properties are owned 100%.  Some are only 60% owned with option to acquire more)  I will “guestimate” that they own roughly 70% of the 102 silver equiv oz. = 71.4  (And I count nothing for the zinc., althouth this is primarily a zinc company.
+ 457 mil pounds copper
+ 4 Billion pounds zinc.
$1.2 mil CAN capital in the til no debt.
$22 mil MC / 71 oz. silver = $.31
You get “approx” 17 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments:  Significant zinc bonus, about 2.4 times the silver value.  Smelter credits are estimated at about 60% zinc, 25% silver, 10% gold and copper, and the rest, other minerals.  My method of valuation puts a value on the silver only, not the rest, so this is a better value than my number shows.

I own shares of EXR.V.

Larry Glazer CEO 1-800-810-7111
63 mil shares fully diluted
@ $.90/share x .77 = $.69 US
$44 mil MC
Location: northern Peru
t1 deposit inferred and indicated resources of: 
1.9 mil oz gold, 64 mil oz silver, 1.94 bil lb copper, 1.35 bil lb. zinc.
t3 deposit inferred 64.1 mil oz. silver, 2.1 mil oz. gold
Total of just these two:  128 mil oz. silver, 4 mil oz. gold x 10 = 40 mil oz. “silver equiv” = 168 mil oz. silver.
In the sulfide deposit of t-1, containing 47.7 mil oz. silver, perhaps only 1/2 the silver is “recoverable”.  So, minus half that, or 24 mil oz. = 144 mil oz.
$44 mil MC / 144 mil oz. = .30/oz.
You get “approx” 17.38 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments: Share price was knocked back last two weeks due to local protests over proposed mine.
Significant copper and zinc and gold bonuses here.  $180 million to develop project.  Cash gold cost projected: $83/  The deposit has “been economic for some time now”.  TG-1 has a positive full feasibility study and and EIA now undergoing government review. 

77.1 M shares 
@ Share price .23 CAN (x .77 US/CAN) = .17
$13.65 mil MC
Reserves and Resources: 41 mil oz. silver
Gold equivalents 712,000 x 10 (from the 70:1 silver/gold ratio) = 7.1 mil silver equiv… 
(new gold to silver value remember, see the top of this article) 41 mil oz. + 7 mil oz. = 48 mil oz.
$13.65 mil MC / 48 mil oz. silver equiv. = $.28/oz.
You get “approx” 18.52 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments: Half the current value is in gold, not silver. If the gold was counted as 70:1, instead of 10:1, the “price” would be about 57% of the price now, or 43% off. 

* MNMM.OB (I own shares) 
(509) 838 6050 Doug Dobbs
8.5 mil shares outstanding
10.1 mil shares fully diluted as of the Sept. 3 pp that closed.
@ share price $6.35
$64 mil MC 
261 mil oz. silver resources.  Previous drilling spent over $100 million drilling the property.   
$64 mil MC  / 261 mil = $.245/oz.
You get “approx” 21.44 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments: 

Mines Management owned 10% of the rights to their property in Montana. The other 90% owner, Noranda, simply gave up on the property and walked away from their mining claim due to “perpetually” low silver prices and political concerns.   That explains the rocketing share price.  So, the MNMM group got 90% of the rest of the property FOR FREE!–the value of which, and the nature of this transaction has just barely begun to be understood by the market, given the low relative price. 

Their property also has about 60% of the value (at current prices) in copper, 2 Billion pounds of copper, and 261 mil oz. of silver.  Doing the math: 261 mil oz. silver x $5.25/oz. = $1.3 Billion. 2 Billion lbs copper x .95/lb. = $1.9 Billion. Total asset value: $3.2 Billion

They do not have an active working mine–Which is a minus.  They will need to raise capital to get a mine going.  Noranda had several estimates for the cost to build a mine and mill, around $250 million.  But it could be less depending on how economic they decide to do things.   They are working on a feasibility study, and avoiding dilution until next year, which is a plus. 

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 their departure in 2002.

(Copper prices also moved up, from about .85/lb. a few weeks ago to .95/lb.)
For more on MNMM see

I own shares of MNMM.OB.  

no website
Phone:Magnus 1(604) 261-6040
6.924 million shares out (fully diluted)
@ .35/share x .77 = .27
$1.86 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
~8 mil oz. silver
$1.86 mil MC / 8 mil oz. silver = .23/oz.
You get “approx” 23 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 CAN $3.5 million — with payback of capital (when equity financed) within two years.” 

Ray Brown, 530-873-4394
70 mil shares
@ .07 cents/share
$4.9 mil MC
–lease of property will expire June 1 2004, need to raise significant money.
49 mil oz.
$4.9 mil MC / 49 mil oz. = .10/oz.
You have an expiring lease on “approx” 52.7 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments:  If my memory serves, they need to raise $2 million to maintain the lease.  If they did a pp at 4 cents/share, they would need to issue 50 million shares, plus perhaps 25 mil warrants to raise $2 million.  Perhaps they can do it at a higher share price, given the trend?  At today’s share price, the dilution would mean a market cap of:
145 mil shares @ .05/share
$7.25 mil/ 49 mil oz. = .14
and you’d get 35 oz. per oz.  They just might be able to do it, and maintain a profitable incentive for the investors, if they have the authorization for that much shares, and I don’t know if they do.   I’m not investing my money in this one, but it will be interesting to watch.  (up 70% on friday)

Explorers deserve their own category, since they cannot be valued by my method of looking at reserves and resources of ounces of silver in the ground.  We do not know how many oz. they might have. They are exploring for that. But, given their market caps, and given what I feel is a good price for a silver company of about 30 cents per oz. in the ground, I can calculate how much silver they had better find, in order to justify their current stock price. This valuation method might also help those who have a better feel for how much silver they might find than I do, to value the company. This list, although at the bottom, in no way indicates that these companies are more highly valued than companies listed above. It is also difficult to categorize a company as an explorer, since all silver companies always hold more silver properties that need to be explored.  Higher grade deposits, obviously, could be valued significantly more than my arbitrary number of 30 cents/oz.

(The order is by largest market cap first, not by “comparative value”.)

Sabine Goetz, Investor Relations – 604.488.2657 
Fully Diluted     27,735,000 with Nov. 6th Private Placement
@ share price $5.50 x .77 = $4.23 
$117 mil MC

Additional comments:  III.TO raised $10 million in the recent private placement.  
III.TO has gone up over 1000%, no typo, up one thousand percent, up by a factor of 10, in the six months from Spring to October, 2003, most in the last month or so since September!  And I completely missed that run up, and still don’t know how to value the company’s mineral assets.  

43.4 mil Fully Diluted shares 
@ share price $1.86 CAN x .77 = $1.43  U.S
$62.15 mil MC / (.30/oz. “Arbitrary Jason Hommel good value” factor) = 207 mil oz. that they had better find to justify the current Market cap.  

Additional comments:  This explorer has found bonanza high grades, which many people consider to be an outstanding benefit, and they are willing to pay much more for such high grades, which have a much higher chance of being able to be mined at a significant profit in today’s environment of low silver prices.  Some people say the high grades are far more important than how many ounces are found, and they more highly value this factor than my arbitrary “good value” number of 30 cents/oz.  In other words, they might be willing to pay up to 50 cents or a dollar for such high grades, and they may be worth that, and they may be right.

19-20 mil fully diluted
@ share price $5.06
$101 mil MC
VGZ is a gold exploration company with 8 projects.
(total measured, indicated, inferred)
8. Paredones Amarillos 2 mil oz. gold 
7. Mountain View .47 mil oz. gold 
6. Maverick Springs 1 mil oz. gold (further drilling in 2003)
5. Long Valley 1.7 mil oz. gold (plus signicant “exploration potential”)
4. Hycroft. 1 mil oz. gold ( plus 6 mil oz. gold + 150 mil oz. silver potential)
3. Hasbrouck-Three Hills .74 mil oz. gold (excellent exploration potential)
2. Guadalupe De Los Reyes .5 mil oz gold (includes significant silver values)
1. Amayapampa .6 mil oz.
All total gold: 8.01 mil oz.
All total “exploration potential”: 14 mil oz. gold + 150 mil oz. silver.
Counting gold 14 mil oz x 10 = 140 mil oz “silver equiv” 
All total “silver equiv.” “exploration potential” = 290 mil oz.
$101 mil MC / 290 mil oz. = $.35/oz.
You may get “approx” 15.1 ounces in the ground for 1 oz. silver’s worth of stock.

Additional comments:  I am severely undercounting the gold with my method of counting an oz of gold as only 10 oz. silver.  Consider this one has a significant “gold bonus factor”.  In fact, only about 13% of the value of this company is in silver, at today’s prices.   Much of the numbers for this one are “exploration potential” or indicated or inferred resource. 

It was also difficult to determine whether or not to count this one as an explorer or not.  To include the silver, I had to count them as an explorer.  They have 8 million oz. of gold in the “inferred and indicated resource” category, which is more certain that “exploration guesses”.  Considering the 8 mil gold oz. alone: $54 mil MC / 8 mil oz. = $6.75/oz for the gold.  If you consider the “exploration potential” of 14 mil oz. gold it’s $54 / 14 = $3.85/oz. for the gold.

The gold ounces here are “marginal ounces.”  They are typically low grade, high cost to mine.  They may be significantly profitable with significantly higher gold prices.  These are among the cheapest gold ounces in the ground I’ve seen.  

Fully Diluted: 224,194,196
@ share price .31 CAN x .77 = $.24
$53 mil MC

Additional comments:  Eurozinc does have significant silver.

* CDU.V  CUEAF.PK (I own shares) 
Henk Van Alphen — President (604) 408-7488  
(working on closing a $5 million CAN financing)
28 million shares fully diluted 
@ share price $2.72 CAN (x .77 US/CAN) = 2.09
$58.6 mil MC
Speculated resources, or “exploration potential”:
Providencia — high grades, could have 100-250 mil oz.
Chingolo — Will finish drilling by secnod week in November — 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.  Please note, “exploration potential” is a non quantifiable, non-regulated, unauthorized type of estimate.  It is not 43-101 compliant.  Trading decisions should probably not be made on these kinds of shaky estimates, which may be only hype and hope.  An investor who wants to be protected by US regulations should wait for geologists to pour over the drill results and produce numbers that comply with 43-101 regulations, that may one day appear in a company press release.  (Also, the first time Cardero issued drilling results earlier this year, the stock price was cut almost in half due to lower than expected results.  The stock price has since recovered.)  Nevertheless, here’s how those “exploration potential” numbers work out if you do the math:
$58.6 mil MC / (.30/oz. “Arbitrary Jason Hommel good value” factor) = 195 mil oz. that they had better find to justify the current Market cap.
$58.6 mil MC / 500-850 mil oz exploration potential = $.12 – .07/oz.
Exploration potential:  you might get about 45 – 76 oz. silver for one oz. silver worth of stock.

Additional comments: *** I wrote an article on Cardero in January, 2003. 

Cardero has three properties in Argentina; actively working on two:  Chingolo and Providencia.  Chingolo was just measured as twice as large as previously thought.  They are trying to prove up these properties.   

Providencia also has potentially high grades in several very large conglomerate deposits that can be mined at a profit today.  Their property at Providencia was an active mine, but only a few tons/day.  But they hope to make a large open pit project out of the main deposit, processing perhaps a few thousand tons/day.

High grades are very important in today’s environment, especially if you can buy them cheaply.

They are also acquiring more silver properties, which is another bonus.  This is an aggressive silver company.  More properties help to alleviate the risk of an explorer.

I own shares of CDU.V

* AOT.V ASOLF.PK (I own shares)
1 604 684 8950
36 mil shares outstanding 
3.7 mil warrants at .30 exp June 4, 2004.
39.7 fully diluted. (Nov 2003)
@ $.29/share  x (.77) = .22
$8.8 mil MC (US)
Additional comments: They own 5.82 million shares and 388,000 warrants of Cardero at $.35, which have a greater asset value than their market cap. 

$5.82 x $2.72 (x .77) = $12.18 mil (US)
$2.72 – .35 = $2.37 (x .77) x 388,000 = $708,061 (US)
= $12.8 million (US) worth of Cardero
12.8 / 8.8 = 1.45 
x .29 = .42 + CAN share price target.

(I’m listing this one out of order, not by market cap, because of their position in Cardero.)

I own shares of AOT.V

376 mil shares
@ share price $ .125 
$47 mil MC
“Total Inferred Resource is 34.5 million ozs silver but the district is unexplored for epithermal silver and exploration to date suggests a district potential of 50 to 100m ozs Ag or perhaps much more.” –“Macmin is a silver focussed company” The Texas Silver Project has in-ground resources of 44.5Moz of silver equivalent
$47 mil MC / 50 mil oz. = $.94oz. 
$47 mil MC / 100 mil oz. = $.47oz.  ***using this number*** since we are counting these as explorers in this categorgy.
You might get up to 11.21 oz of silver for one oz silver’s worth of stock

Macmin exploded in price this week!

28 mil fully diluted shares (Nov. 19, 2003)
@ share price $2.22 CAN x .77 = $1.70 US
$47.8 mil MC / (.30/oz. “good value” factor) = 159 mil oz. that they had better find to justify the current Market cap.

–“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.”

Dianne (IR) Phone: (403) 265-4356
257.1 Million shares fully diluted
+87 mil shares & warrants as of Oct. 7th, 2003
= 344 mil fully diluted
@ share price $.18 CAN x .77 = $.1386 US
$48 mil MC
From p. 1 of 2nd qtr 2003 report: “The company has a policy of not hedging or entering into forward sales contracts.”
Cash flow positive. !!!  
14 projects in the Philippines.
Producing a dore bar of 96% silver and 4% gold from Canatuan project with the following:
827,000 tonnes 3.98 (au)g/t 141.1(Ag)g/t = .14oz/t gold + 4.98oz./t silver
1,497,000 tonnes 1.26 (au)g/t 58.4(Ag)g/t = .044oz/t gold + 2 oz./t silver
= 115,780 oz. gold + 4,120,000 oz. silver
= 66,000 oz. gold + 3,000,000 oz. silver
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.
+ 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)
+ 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.
$48 mil MC (.30/oz. “good value” factor) = 141 mil oz. that they had better find to justify the current Market cap.

Additional comments:  This company exploded in price this week 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

They are primarily a silver explorer.  The bonus is they are a producer, and likely are cash flow positive, which are both extremely rare for an explorer.  In fact, the other producers mostly all lose money! 

Shares Outstanding – 180,721,142
Exchange–LSE Currency–GBX
Mid price/share = 14.375
Is GBX the Brittish Pound? If so… x 1.6998
also, is 14.375 in cents, not pounds?  
14.375 x 1.6998 = 24.43  It’s close to the PK price… 
@ .21 at Yahoo! CAUCF.PK  hmmm
@ $.22.5 US/share, guessing here…
(Mining in China)
$39.6 mil MC

* NPG.V / NVPGF.PK (I own shares)
33 mil shares fully diluted
+ 1 mil shares options for executives
= 34 mil shares as of October, 2003
@ share price 1.06 CAN x .77 = .81 US
$28 mil MC
Amador Canyon Silver Project: 50-250 mil tonnes
silver grades average 4 oz. sil/ ton in the deposit
= 200 to 1000 mil oz. silver????? –very speculative at this point. Drilling needs to be done, scheduled $13.2 mil MC / (.30/oz. “good value” factor) = 44 mil oz. is all they need to find to justify the current Market cap.
$28 mil MC / 200 mil oz. = $.13/oz.
$28 mil MC / 1000 mil oz. = $.028/oz.
At $.12/oz.,
The inverse: you “might” get 40 ounces in the ground for 1 oz. silver. 
At $.022/oz.,
The inverse: you “might” get 188 ounces in the ground for 1 oz. silver. 

Additional comments:  Explorer in Nevada. They do not really know how much silver they might they have in the Amador Canyon project.  They are doing drilling this fall, 2003, as they just did a $2.5 million private placement. The Chariman, David Hottman, says that 90% of the value of the company is in gold, NOT silver, and yet, I’m buying this company for the silver value only, and as if the gold componant was worth nothing. (The gold projects are a free bonus, in my book, and help to alleviate the risk of this explorer.) He has 10 gold projects, and one silver-but it may be big. On the website, for David Hottman’s bio, it says he was a founding member of Eldorado gold. “During his tenure, Eldorado’s market capitalization grew from Cdn $7 million in 1992 to a peak of Cdn $781 million in 1996.”  Please note, exploration is risky, and costly.   
I own shares of NPG.V  

39,240,457 shares Fully, Diluted
@ $0.53/share x .77 = .40 US
$16 mil MC
–About 6 properties in Peru

fully diluted 20 million shares
@ share price = $1.55 CAN x .77 = US $1.19
$24 mil MC / (.30/oz. “good value” factor) = 79 mil oz. that they had better find to justify the current Market cap.  “Esperanza Silver Corporation is solely dedicated to the identification, acquisition and exploration of new silver projects.”  

Additional notes:  Management involved with SSRI

* MMGG.OB (I own shares)
14 mil shares fully diluted (Oct 23, 2003)
@ share price $1.94 x .77 = $1.49 US
$21 mil MC
zinc and silver
$21 mil MC / JH value .30/oz. = 69 mil oz. they need to find to justify current market cap.

(416) 368-4525
30 mil shares
@ share price $.79 CAN x .77 = .60 US 
$18.2 mil MC
Company’s exposure is about half to gold, half to silver in several projects.
Joint Venture with BHP Billiton focused on “Cannington” style silver deposits using proprietary BHP Billiton data.
(all figures are “exploration potential”)
El Salvador – 38.5 mil oz.
Argentina – 6 mil oz. 
Total: 44 mil oz. silver
Total gold: ~690k oz.  x 10 (10:1 ratio) = ~ 6.9 mil oz. “silver equiv”
Total: 53 mil oz. “silver equiv”. (exploration potential or indicated or inferred, not reserves)
$18.2 mil MC / 53 mil oz. = $.34/oz.
Hopefully, you get 15.3 ounces in the ground for 1 oz. silver. 

Additional comments:  Their “exploration potential” lies right about at the “arbitrary good value” range.  This explorer/developer tends to focus on good grade, mineable deposits, and form partnerships with other companies to access great information, and expects to produce silver & gold within 2 years, by 2005.  They also took the time to contact me, after having seen this silver report.  

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.

ask for John Robinson
@ share price $.46 CAN x .77 = $ .35 US
$14 mil MC / .30 “good value factor” = 46 mil oz. they need to find to justify a value price.

Additional comments: silver in cuba. (final feasibility study completed by Rescan-Hatch) gold in Timmins, Ontario.  

* GNG.V  GGTHF.PK (I own shares)
+ 4 mil warrants
= 32.4 mil shares fully diluted
@ share price $.53 x .77 = $.41
$13 mil market cap /.30/oz. “good value factor” = 44 mil oz. they need to find to justify a value price.

Additional comments:  Silver Explorer in Mexico in the the Sierra Madre mountains: Uruachic.
Doing active drilling on their silver property, Las Bolas, “in a month” (as of Oct. 7th).  They hope to take a collection of old silver mines and make them open pittable.  They have some very high grades from chip samples from the tunnels, ranging from 100g to 500g all the way up to around and over 1000g/ton of silver.

I own shares of GNG.V

16.3 mil shares outstanding 
(fully diluted?)
@ shar price $.96 share x .77 = .74 US
$12 mil MC
Bonanza grade “grab samples” in southern Argentina near IMA

15.7 mil shares
@ share price $.78 US
$12.24 mil MC / .30 “good value factor” = 49 mil oz. they need to find to justify a value price.
 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.

25.6 mil shares outstanding (3q 2003 report June, 2003)
@ share price $.46 CAN x .77 = $.35
$9 mil MC /.30 “good value factor# = 31 mil oz. they need to find to justify a value price.  

Jay Oness Toll Free: 1-888-456-1112
36.4 mil shares Sept 2002
+ 3 mil undefined “units” Oct 2003
41? mil diluted???
three main properties in North America
@ share price $.305 CAN x .77 = $.23 US
$10 mil MC?

QTA.V is a Sister Company to Western Silver, WTZ above.

48 mil shares outstanding  (2002 annual report)
@ share price $.195 CAN x .77 = $.15 US
$7.2 mil MC
indicated = 63,400 t x 2738 g/t x .0353oz./g = 6.1 mil oz. silver
inferred = 2100 t x 1,433 g/t x .0353oz./g = .1 mil oz. silver
“gross in-situ value of mineralization is $31.4 million.” 
$7.2 mil MC / 6.2 mil oz. = $1.16/oz.   

Additional comments: “Excellon …is exploring and developing”…. “a Bonanza grade Silver deposit in Mexico.”  

12 mil shares
@ .72/share 
$8.6 mil MC /.30/oz. “good value factor” = 28.8 mil oz. they need to find to justify a value price.
In Cour d’Alene, near CDE, HL, & SRLM.PK

Toll-free 1-888-805-3940
15 mil shares outstanding ??? -email said.  call to confirm.  Use “fully diluted” to be safe.
@.69 share x .77 = .53
$8 mil MC
Adjacent to Barrick’s silver property, which is “the fifth largest silver producer in the world”.
A claim made in an email to me: “The Property was once almost bought for $34.5-35 million in 1996.”

Michael Townsend, President
Toll Free: 1-866-669-9377
Richard one of the IR guys.
18.6 mil shares outstanding
25-27 mil fully diluted.
@ $ .27/share x .77 = .21
$5.4 mil MC

Additional Comments:  –Bonanza grades.  Newmont called them, noticed the property.  Flew out a guy.  El Tigre in Mexico: gold/silver  bonanza style mineralization.  Top grades:  62g/T gold 15,500g/T  silver historic production, from trenching and surface sampling in late 90’s.  Cash on hand: $500,000 CAN

7.4 mil shares issued
@ share price $.88 CAN x .77 = $.68 US
$5 mil MC /.30/oz. “good value factor” = 16.7 mil oz. they need to find to justify a value price.

14.7 mil shares outstanding
17.2 fully diluted
@ .36/share x .77 = .27
$4.76 mil MC
Silver projects:
Yukon –grab sample of 611 g/t Ag
Argentina –samples from 31 to 5640 g/t Ag

* CEV.V CVEEF.PK (I own shares) (604) 681-8899 John Versfelt, President
45,535,179 shares issued and outstanding
57.4 mil fully diluted (as of just issued quarterly report)
@ .10 CAN x .77 = .077
$4.41 mil MC

14.3 mil fully diluted (July 15, 2003)
@ share price .21 CAN x .77 = .16
$2.3 mil MC 


$17.1 mil MC
“Itronics Inc. is the world’s only fully integrated photochemical recycling company. It provides photochemical waste collection services, recovers and refines silver from the photochemicals,”

Additional comments:  Itronics is not an explorer, and not a miner, and has no reserves.  As such, it is extremely difficult for me to value this compared to other silver stocks.  I just don’t know how to value this one.   

Final Category: Silver stocks FOR YOU and I TO RESEARCH further:

I strongly recommend you try to “get ahead of me,” and research these stocks to see if I left out any great values.  I probably did.  I simply did not have time, or could not yet find information (without using the telephone) on all the three key figures needed to get the “price per oz.” in the ground.  You need:  number of shares fully diluted x share price to get the market cap.  Then, you need an estimate of the oz. in the ground.   Usually, I’ve been finding the oz. in the ground resource estimates right off the company webpages, and I get the number of shares by looking for it burried in the financial statements like the quarterlies or annual reports, which are also usually right on the company webpages.    Have fun this week!


Legend Mining 
specialising in exploration and production of silver.
Silver at the Munni Munni Joint Venture in the West Pilbara region of Western Australia

Mountain Boy Minerals Ltd (MTB.V
TEL: (250) 636-9283
high grade samples:  3640 g/T Ag to 45.5 g/T Ag

Mascot Silver Lead Mines MSLM.PK
“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…”

Malachite Resources NL MAR.AX

Silver Buckle Mines Inc (SBUM.PK)

Fischer-Watt Gold Co Inc (FWGO.OB)
George Beattie, 208-664-6757

Silver Mountain Lead Mines Inc (SMLM.PK)

Silver Butte Mining SIBM.PK
(mine abandoned in 1996, copper/zinc waste water?)

Silver Verde May Mining Co (SIVE.PK)

Metropolitain Mines Ltd (MEMLA.PK)

Silver Surprize Inc (SLSR.PK)

Standard Silver Corp (SDSI.PK)

Horn Silver Mines Co (HRNS.PK)

Golden Phoenix Minerals Inc (GPXM.OB)

Teuton Resources Corp TUO.V TEUTF.PK

GoldSpring Inc GSPG.OB

Andean American Mining Corp AAG.V ANMCF.PK

Langis Silver & Cobalt Mining Co Ltd (YLS.V)
Phone: (416) 628-5936

Cangold CLD.V

Chariot Resources Limited CHD.V

Ross River Minerals Inc (RRM.V) 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 Bowl –not yet public?

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 of the internet. I’ve seen markets moved even by small private newsletters such as and (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.  

To learn more about the silver market:

For information from the SEC on how to protect yourself from a “pump & dump” scam, see

Several 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.

You can help to make sure you can keep getting this report for free if you sign up at The Silver Stock Report

Jason Hommel
The Silver Stock Report

Final Disclaimer:  I have not received any compensation from any company for writing up my weekly report on “Silver Stocks–Comparative Valuations”.  Within the report, I declared my ownership of each company that I own. To repeat, I own shares of the following 12 silver stocks: CZN.TO, MNMM.OB, SRLM.PK, CEV.V, CDU.V, NPG.V, CFTN.PK, GNG.V, EXR.V, SVL.V, MMGG.OB, AOT.V.  I do not engage in short selling. I reserve the right to buy or sell any stock at any time.