I Think Gold and Silver Are Staging For A Run, Here Are Some Mining Stock Ideas

in money •  2 years ago  (edited)

The metals I think may stage an unexpected summer run. Worst case, they stay in the same basic trading range a little while longer, and the run comes later this fall. Either way, these mining stocks and others I will go through in the future writings offer exponential gain opportunities as they have been beaten down about as far as they can go, and I look for companies with the best leverage.

Mining companies go up and down at times like rocket ships, and they are not for an investor that does not understand this trait of theirs. They can be a very profitable and exciting diversification to ones portfolio at times and it appears we are nearing a bottom of a correction that has dropped prices and could provide a great entry point into the right companies. I invest only in companies that have proven assets, near term production or in production and not exploration stocks that are still ‘looking’ for viable deposits. This is how I make my picks for myself thru the years, by doing my homework.

I love hearing what the CEO's have to say about their own companies as well as using the corporate presentations as a source for a good starting point. I tried to glean the key points from recent information that has been released with a little added opinion in a way that would not make a readers eyes gloss over yet give them enough to decide on if they should explore any of the companies further. All the companies I investigate, I either own, want to own, used to own, or the info eliminates them for me of further consideration and this becomes a great resource for me to decide on what to invest in for myself either now or in the future.

Here are some short summaries of some gold, silver and base metal miners I took the time to go thru. I spent hours going thru many companies (several I did not even write about as I did not find them of any interest to me) and obtaining this condensed information so I hope you will find it worthwhile!!

Americas Silver, symbol USAS.
Has a 60 year mine life, no hedging or royalties, low float, so it has great leverage to any upside in the metals. Producing assets are in Idaho and Mexico and they mine, mostly silver, lead and zinc. Should have a very low, possibly even negative AISC ( all in sustaining cost to mine) next year with the new Mexican mine coming online. They could also be heading towards a near 8 million ounce silver equivalent production output down the road and coupled with that low float, and lost cost of production, it gives them huge, huge leverage if all comes together for them and the metals start heading up. If so, this one could really take off price wise. Around 50 million shares outstanding so a very low float. This is one of my favorite silver leverage holdings.

Alexco, symbol AXU.
Finally restarting production with the Silver Wheaton royalty problem fixed as it was too draining of profits the way it was formerly structured. Another big development, they have discovered a couple new amazing rich silver properties that can be measured in pounds per ton silver when put into production. They had a terrible deal with Silver Wheaton for 25% of their production which basically kept them out of production for the last few years that is now re-written to much more favorable
terms. They will be starting up their return to production with the same assets they had
before, plus these other huge hi grade deposits added to that. In total could be mining at an average rate of 4 million ounces per year. Very hi grade silver properties are open at strike for future added ounces on the exploration front which could keep this asset going indefinitely. Production will produce very good clean concentrates which is a plus and would add to the bottom line as well. It only has 105 million shares out, so lots of leverage to silver both as a production and exploration asset. Another favorite silver leverage holding.

Avino, symbol ASM.
Another with very low float 60 mil shares out. Production of silver equivalent expanding to 4 million ounces coming Q1 next year from less than 1 million just a short while ago. Has huge exploration potential as well as leverage. The once very rich Bralorne Gold mine kicker coming into play late this
year. The gold mine has never explored with modern methods and they are building a new and positive relationship with the Canadian First Nations to be a part of this exciting new opportunity. Samsung has an agreement in place taking Avino’s silver product at spot as a guaranteed source for them. Another source of mine production, a huge old tailings resource will be extremely cheap to extract the silver from and add another 1.5 million ounces for 7 years when they put it into production.
Another favorite silver leverage holding with a gold kicker.

Coeur Mining, symbol CDE.
Totally overhauled from 4 years ago, eliminated almost 400 million in debt with growing cash
flow. 5 different mines, 3 in the US, plus exploration properties. They had IMHO very poor management previously, and most of the turnaround can be attributed to getting rid of those seemingly disinterested in shareholder value managers. The new management has a plan and has been successful in executing it thus far. Very liquid stock is a plus for institutional ownership. Right now around 60% gold- 40% silver in revenues equals yearly production of 375,000 ounces gold and 17 million ounces silver, or about 40 million silver equivalent production. Currently a 16 dollar area AISC is dropping from way higher costs not long ago. This is one of the bell-weather silver stocks but is really just as importantly a gold stock. Another important fact, while many silver stocks really are equally base metal stocks, this is uniquely positioned as more of a precious metal miner. Shares Outstanding, 181,055,852. For me, this is one of my premier holdings for both gold and silver leverage.

Detour gold, symbol DRGDF
Huge 16 million ounce gold reserves, currently replacing them every year with newly defined resource through exploration. Expecting to have increasing grades ahead that will improve profit and they will be nearing 670,000 ounce production in 2018. Looking at adding hi grade underground mining to the current open pit production. AISC at around 1100/oz gold and dropping eventually to 758. Only hedged about 90,000 ounces so has retained its leverage for anticipated higher gold prices. 130 mil in cash on hand, 450 mil in debt. Lots of leverage, 23 year life of mine, the risk is in the high debt, current refinancing objectives being secured, and in being a 1 property only operation. Shares Outstanding 174.57M. This as one of the higher priced, large production gold mining stocks is unique in the leverage it offers to the price of gold, but with some added risk.

First Majestic Silver Corp, symbol AG
Purest silver company in production in the world with 70% silver revenues.
Balance sheet strong, 130 million cash, 30 million debt. 9 properties are all in Mexico. 18
million silver equivalent production at 12-13 dollar per ounce AISC. Leverage with higher production
capacity that can be quickly brought on line at higher silver prices, 165 million shares out standing provides one of the most leveraged to the price of silver mine stocks. Another very important factor for this and all mining companies is management, and this company has great management with a proven track record. ONe of the best companies that will track silver exponentially higher when silver starts moving up again in earnest.

First Mining Finance Corp, symbol FFMGF
Same basic proven management as First Majestic. They were buying cheap already proven ounces in the ground of distressed miners when the prices were at the bottom. Example of their business model, they bought the Springpole project for 15 million when previous company had spent 80 million developing it with proven ounces in the ground. They want to divest these properties they have acquired for streams and pay a dividend down the road. Mostly gold focused properties they have targeted thus far. Accrued 7 million ounces measured/indicated and 5 million inferred in the current assets all of which are thought to be able to be profitable at today’s metal prices. 29 million in cash, little debt. It is now focused on drilling current properties to prove up more ounces. 623 million shares outstanding. A great gold play with minimized comparative risk to some other mining stocks.

Hecla Mining Company, symbol HL
Company was founded in 1891!! Biggest plus, huge reserves and very long term assets that will last into the decades. Biggest negatives, 395.44M. shares outstanding, and it seems it has a sometimes rocky relationship with employees. Also for some a negative, it is a huge base metal miner although with current prices, that is a big plus. For me, it is simply a fact that must be understood. 17 mil ounce silver production or 46 mil silver equivalent. They have great assets with gold, silver and base metal production. Personally, I have not always been thrilled with the management over the years although they are very capable, and I have owned it on and off as it is a very liquid mining stock and has institutional ownership. Two newly acquired silver/copper properties in Montana have huge, huge potential for output and once fully permitted and in production 6 years or so from now and will operate for 30 years or more. I like to trade this stock as it is very liquid, but not necessarily hold for the long term.

Integra Gold, symbol ICGQF
I have been watching this one for years. They are claiming they will have a pretty low 824 dollar AISC for planned 140,000 ounce gold production when fully running, ramping up now for beginning production for 2018. Their property has bankrupted 2 previous owners which makes me nervous but they say new discoveries are game changing. 480 mil shares out which is a negative for me as it hurts leverage and ability to raise money. Has a sizeable 2 million ounce deposit. A real bonanza move for them, they bought the 100 million dollar plant next door for 7 million. After I wrote the preceding, EGO announced the interest in taking over the company, so exciting news for Integra holders as the stock quickly went up on the news.

International Tower Hill Mines, symbol THM
Gigantic large single asset of 9 million ounces in Alaska is one of the very few extremely large undeveloped assets out there in a world where finding new gold to mine is becoming a real problem for most mining companies. Biggest problem is the asset is very low grade at 0.71 grams per ton. Too low at current metal prices to mine profitably, maybe to low of a grade at almost any metal prices. 170 mil shares out.

Thank you for taking the time to read this article. If you like what I have put together and find it of value, let me know by commenting, upvoting and ReSteemem it and it will encourage me publish again as I go through more companies in a similar fashion and will even go more in depth into individual companies, and other investment opportunities I am interested in including some crytpocurrency plays I am following.

MOTOWNGOLD!

My disclaimer, The above references are an opinion and for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

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Ivanhoe has treated me well. Almaden simply for the CEO and the reserves being built... Smart dude! I heard him on a podcast and he left an impression.

Picked up a couple I'll research in your article as well. Thank you

I have not looked at Ivanhoe in a while but I will put it in the to do list. I go thru the companies on a continual basis, as things change, it does take some time though!!

AWESOMEE...
Ive also been watching:
Yamana Gold
Fortuna Silver Mining
El Derado Gold

When the metals finally take off, they will all do well.

Finally got a chance to read, you have done your homework amigo. Great article people would pay for this info.
I like Keith Neumeyers from First Mayestic, he gets it for sure. Thanks once again amigo
Upvoted and resteemed

Thank you for saying that, very valued to me as I did put a lot of work into this. I do this continually rotating more and more stocks to keep up on them, as a resource for myself, but I thought I would start sharing if people liked it. Already working on the next bunch!

Thanks, great write up!
Got to love AG, CDE, made some $$ on those guys in the past

If you like silver, those are must haves in my opinion. thank you for the complement!

We've got a SAR flip on the Weekly $GOLD chart and we're above my DT line.. So that's a good start : )

I'm kinda new here, so hope this link works..

http://stockcharts.com/c-sc/sc?s=%24GOLD&p=W&yr=3&mn=0&dy=0&i=p04615767604&a=414888733&r=1496793711281

Bear with me guys, trying to get the hang of this. Replied to the wrong comment, lol

Great article. The only minning company i have shares in is first majestic. Thanks my friend

Nice work

Thank you for the appreciation.

Btw, following you now

Thank you, we have some similar views, and I will follow you as well.

You are 100% correct on the mining shares, shares are always a leverage play to the commodities they are mining. The problem I had with pm shares was I got in to early about ten years ago, and nearly all my junior shares have either have gone broke or the shares have been diluted to nothing. The only shares I have left are the big caps and the mid size companies, and all them are under what I paid for them. Cheers

Sorry to hear about your juniors, hang on to your survivors, I think you will be greatly rewarded. I do not typically do the smaller explorer types, especially right now. The better solid companies like a CDE are going to give you gains just as well, without the risks I believe, so why play that game of 'finding metal'. Too many busts.

Some of the juniors are still hanging in there, but like one I had 70000 share at .20 cents down to 700 shares at .004 cents, but it's still trading. It's a dicey game playing with juniors in a manipulated market. Cheers

Miners so beaten up. Still some healing to do hahaha

A lot of mine share owners need some healing too, lol. I think they are about to get it in a very good way!

I'm definitely going to read this when I get a chance. It looks pretty cerebral and right up my alley. I just want to give it a real chance to Copper hand before I share my thoughts on it. I very much greatly appreciate your work 🙏🙏

I literally spent hours condensing this. There is more info on companies I had to plow thru that I did not like, to get to the ones I even wrote about. I have more coming as well I am working on now. i hop you find it worth your time. I will be checking out your stuff as well, have already read a couple, good work!

I'm glad that people like you are putting out the technical work. I focus more on getting newbies in the door because I still consider myself to be one. Haha

Well that is important to get new people here. I am a newbie to steemit too. Been writing on investing and other stuff for years. Was not sure how it would be received here, but I thought I would give it a try and so far it has been ok I guess? I am glad you liked the article though, that is encouraging.

Yes newbies to steam it but I was referring more to newbies to silver stacking and the whole paradigm of real and sound money. Major red pill!

Somebody gave that pill to me, well my dad really, when I was a little kid so I guess I never went thru that shock, lol.

My Fam got Ron Paul'ed really hard lol! We always had affinity for liberty and freedom, but I am just beginning to understand economics. No knowledge of REAL economics, no freedom.

resteemed

Much appreciated!!

so you would prefer to invest in mining stocks over the physical metal? If so can you please elaborate? Thx

Metal first, then the stocks. I have studied metal bull runs of the past all the way back to the depression, and experienced more recent ones myself. The metals give you that ultimate comfort, a nice secure feeling in todays world of so many unknowns, but the correct stocks will give you gains that can be 10x what the metals do in gains, even more! When they move, they are breathtaking, but you have to be in the correct ones, and live thru the corrections at times which will be equally breathtaking. I think now, it is actually easier as the really solid companies will skyrocket, so no need to chase the really speculative ones to get the big gains when the metals finally do run, which I think we are very close to that happening finally.

thanks for your input ...really

I agree, We got right at $1300 and $18 silver the point where once again they will try to beat the price down but they have not been that successful lately. Seems they can't take it down far enough and can not hold it down very long. I think that does set it up for a summer run. I am really interest in seeing what happens with it this week because of the current price. Good post, thank you. @anothervoice is now following.

Agree , interesting weeks coming up, thanks for the appreciation. Already following you.

Only 12 cents?

I know :( about 2 cents and hour as to what I spent researching this, but o well, I would share it for free if people find it valuable!!

I would add Pretium Resources (PVG) to this list. Brucejack is one of the great deposits found in the last twenty years. The company is ready to start production of a high-grade gold mine with AISC of around $500 an ounce.

I have not looked at Pretium recently but do plan to do so again soon. I go thru the companies on a continual basis, as things change, so as to keep in the best leverage to what the metals are doing. I know Pretium has a great resource!
I have more I am working on, that I will put out when done.

Great post with a lot of information.
One remark you used for International Tower Hill Mines the symbol of Coeur Mining, CDE.
BTW I have posted some posts where I do some analysis of silver and gold.
Upvoted and follow.

Thank you for catching that and making me aware, will be following you as well.

Eldorado acuired intergra gold so not so sure about intergra gold.
First mining has a excellent team.
First majestic you can't go wrong.

both have same team basically, thanks for pointing out spelling will fix!

I own some First Majestic. Management is superb.

Keith N is as good as they come, he is basically running First Mining as well.

This article is nice am thinking of investing in Gold soon 😎

It may be approaching a very good time to do so I believe.

Great article. AG & HL are two of my favorites.

Have heard many good things about FFMGF, will look into picking some up for the upcoming bull market.

FFMGF is essentially the same management as AG, some of the best in the business, but is gold in Canada focused where AG is silver in Mexico focused.

Thanks for clarifying. FFMGF is still only available OTC if I remember correctly?

Yes, OTC, or Toronto, but it is quite liquid.

  ·  2 years ago (edited)

I listened to Andy Hoffman this morning with Greg Hunter. He was saying that there will be a supply problem going into the future as the pm are the secondary product of what is actually mined. This is due to a global slow down and the main product being oversupplied and no demand. What will happen to mining shares as this comes into effect? I think to hold pm's would be a wiser investment. What do you think? Great read by the way.

I like doing both, the metals give you that unparalled stability, but in a metal bull market, the stocks can give you 10 times the gains at times. It really depends on your situation and your goals. I guess I like to have some risk capital out there deployed in what I think are markets ready to appreciate in large moves. I think the better mining stocks offer that in spades currently.

Thankyou. My brother commented on how well mining stocks were doing yesterday. I need to look into it and be comfortable with the whole thing before I get involved in mining stocks.

They are not for the faint of heart, the move up and down in large scary/exciting moves, but have been in a severe correction for a few years , so that coupled with fundamentals and other market factors, make them a good bet, nothing is a sure bet.

I think I'll watch and learn then take the plunge. Thankyou.

One more thing, a couple of the stocks in the article I found I am not that fond of after research like INternational Tower Hill, the ones I own I of course like.

I like first majestic and first mining i think you should also take a look at goldming corp they have over 20 million ounces in ground let me know what you think

Thanks so much for this post. There is really good information in here. Upvoted and resteemed.

Keep at it. You'll get a following and then your posts will be worth more.

Any thoughts on MUX? I did some research into it last year and it looked good. Been holding since about March 2016.

Thanks for the input, I am still pretty new here so learning the ropes still on steemit, and what people actually find valuable to read.
MUX is one I want to do fresh research on in the near future, but I am familiar with it , have owned it off and on in the past. It has good management, which is half the battle OR MORE with these mining stocks. It had some issues, stolen bullion, etc, but looks like it has clear sailing if the metals cooperate, it should do well. I will be doing more of these and MUX will be on the list and will have better info then.

Appreciated. Thanks. Yes, good management is one of my main criteria also.

Got it.


Frank holmes said back up the truck

That is pretty much what I think, and have done, although I was not quite so bold in my stating!! lol.

Thanks for sharing

Thank you for taking the time .

Very good. The mining stocks will pay off eventually. Takes time. You have listed some good ones. No one will believe what is going to happen when the rockets get fired up.
Thank you
Francis

I agree, turbo rockets just sitting idle now.

Upvote!

From the #redfish 🐠 community supporting you

thank you , so appreciated!