Gold price on 8/29/19: $1525
Silver price on 8/29/19: $18.20
For calculation purposes, I’m using $1500 gold and $18 silver.
The silver stocks are organized by their leverage calculation, which is the USD value of silver resources divided by USD market cap. Plus, I add the Capex, the cost to get the mine running, to the market cap, where available.
It’s hard to find value in this sector today. The majors are too expensive. Many of the minors were acquired, or went out of business, and I followed up on many more of those events in this report.
For more advice on how to read these types of comparative valuations, please read the introduction in my gold stock report: https://revealingfraud.com/2019/08/silver-gold/gold-stock-report-3/
https://www.firstmajestic.com — no longer covered, P/E of 25 is high.
(Silvermex and Genco Resources merged in 2010 into Silvermex Resources)
(Silvermex Resources was acquired by First Majestic in 2012)
http://silvercorpmetals.com/ –no longer covered, P/E: 19
https://norzinc.com/ (formerly Canadian Zinc) no longer covered,
Appears to be “barely economic” as the NPV is below the Capex.
Leverage with Capex ($305 million): 1.6
http://www.excellonresources.com/ –no longer covered
Lost money every year from 2014 to 2018, p. 25
https://www.panamericansilver.com — no longer covered
(Pan American Silver acquired the Navidad Argentina property in 2010)
http://www.silvercrestmetals.com/ — no longer covered
https://www.edrsilver.com/English/home/default.aspx — no longer covered
No capex yet, working on Pre Feasibility Study
75.5 million x $17/oz. = $1283 million
https://capstonemining.com/investors/share-capital/default.aspx (formerly Capstone Gold)
400 million shares outstanding
$.49/share x .76 CDN/USD
$149 million market cap
8.3 million oz. silver x $18/oz = $149 million
500,000 oz. gold x $1500/oz. = $750 million
Total resource value: $899 million
117 million issued and outstanding shares
$2.33/share x x .76 CDN/USD (Last report, I failed to do the currency conversion in my calculations.)
Market Cap: $207 million
Keno Hill, in Yukon, Canada A former mine, still moving towards production.
83 million oz. silver indicated, 23 million oz. silver inferred, p. 4
total 106 million oz. silver x $18 = $1908 million
Initial capital costs of $23.2 M (cdn) p. 5, After-tax NPV5 $101.3 M (LOW CAPEX!)
Grades: average about 1 kilo/tonne
Estimated to produce 3-5 million oz. of silver per year over a 7 year mine life.
Leverage of capex + market cap (23.2 + 207 = 310) = 8.3
169 million outstanding shares
$.51 x .76 CDN/USD
Market Cap: $66 million
p. 5 grades: .06 gold, 19 g/t silver, very very low grades. (How could that be economic?)
Capex: $569.7 million
128 million oz. silver indicated
131 million oz. silver inferred
Total: 259 million oz. silver x $18 = $4662 million
Leverage of MC + Capex (66 + 570 = $636 million): 7.3
Issued and Outstanding: 103 million shares
$2.38/share x .76 CDN/USD
Market Cap: $186 million
The 100% owned Corani silver-lead-zinc property
Working on feasibility studies from 2009 to 2017
2018, Permitting, and Financing and initial contruction
NPV: $404 million
Capex: 586 million
Proven and Probable: 225 million oz. silver + 135 million oz. resources.
=360 million shares x $18 = $6480 million
Leverage of capex + market cap: (586 +186= $772M) 8.4
https://www.ssrmining.com/ (SSR Mining) (formerly Silver Standard)
$16.30/share on the Nasdaq
Market Cap: $1.99 million ($2 billion)
Measured and Indicated: 630 million oz. silver, x $18 = $11,430 million
7.6 million oz. gold x $1500 = $11,400 million
Total: $22,830 million — about 10% more inferred: $25,000 million
(I consider SSR Mining to be a fairly good stock, because it’s a major market cap, and liquid. But the point of a list is to find better ones. The trouble with SSR Mining is that it is very difficult to evaluate, because they have so many projects, and some of them might not be economic. With so many projects, we also can’t find the CAPEX of all of them. Due to these drawbacks, we should be looking for stocks better than SSR Mining. My next list may discontinue coverage of companies that profile worse than SSRM)
Issued and Outstanding Shares as of today: 63 million
$.85/share x .76 CDN/USD
Market Cap: $41 million
Silver Production: 1.3 million oz.
Barely profitable. +2 cents/share or -1 cent/share.
Resources: M&I: 26.3 million oz. silver + Inferred 13.6 million oz. silver
Total: 40 million oz. silver x $18/oz. = $720 million
(Since 2005, Avino has cut the share price in half, and issued 6.3 times more stock.)
http://www.silverbullresources.com/ (formerly METALLINE MINING)
236 million issued and outstanding shares
$.125/share x .76 CDN/USD
Market Cap: $22.4 million
91 million oz. silver Measured and Indicated
JV with South 32; they can earn up to 70% of the project. p.5:
91 million oz. silver Measured and Indicated x $18 = $1638 million x .30 = $491 million
http://monarcaminerals.com/ (formerly oremex silver inc., formerly ormex resources)
49.6 million shares issued
$.065/share x .76 CDN/USD
$2.45 million market cap (so tiny!)
P. 6: Tejamen: Inferred resource of 19.8 million tonnes @ 45 g/t Ag resulting in 28.7 million
contained ounces of silver (15ppm cutoff) – completed in accordance with NI 43-101
and CIM (2014) standards
28.7 million oz. silver x $18 = $516 million
Leverage: 210 (WARNING: LOW GRADE, LIKELY UNECONOMIC. 45 g/t silver is like 0.5 g/t gold)
(It appears no pre-feasibility study has been done in the last 14+ years.)
Yukon Zinc was acquired by a Chinese company in 2008, and is no longer free trading.
Mining went into production for a few years, then stopped and the mine was put into care and maintainance in Jan. 2015.
Redcorp Ventures filed for creditor protection in March, 2009
Their Tulsequah Mine was a gold/silver/lead mine and appears abandoned.
301 million shares outstanding
$.09/share x .76 CDN/USD (at half the share price, and three times the market cap in 2005)
$20.6 million market cap
–Positive Feasibility study and low capex for the sleeping giant mine, only $5 million
“The mineral reserves are estimated at 339,221 tonnes grading 7.9 g/t of gold (85,690 ounces). “
“In 2016, Abcourt acquired the Sleeping Giant mine and mill”
–Earned $2.6 million net profit for prior nine month period as of June, 2019
Sterling Silver went bankrupt around 2009.
The Sunshine mine appears to be acquired by:
“2014 NI 43-101 total resource of 297 million ounces of silver at
a grade of 827 g/t”
74 million shares outstanding.
I can’t find a ticker symbol.
I found out why:
“Can I buy shares of Sunshine Silver?”
“Not right now. Sunshine Silver is still privately held but plans to conduct an initial public offering in the future when markets are favorable. The company intends to list its shares for public trading on the New York Stock Exchange (NYSE) and Toronto Stock Exchange (TSX).”
–In situations like this, you may be able to buy shares directly from the company if you call them.
If we assume a leverage of 44, twice as good as the next best company on our list, this implies the value of the silver should be worth 44 times higher than the market cap, as follows:
300 million oz. x $18 = $5400
Divided by 44 = $122 million market cap
/ 74 million shares = $1.66 share estimated “good value” price per share.
I called the company twice. Straight to answering machine. No answer.
Mines Management was acquired by Hecla Mining 2016
FIRST PAID SILVER STOCK PICK
Market Cap: $27.6 million
114 million oz. “silver equivalent” ounces across 3 properties, x $18/oz. = $2052 million
For the name of this stock send $49 to: