Andy So

Value Investing: Going for the Gold (and Silver)

To Marc, I consider LMC a tremendous value at under $5. Considering the negative sentiment surrounding mining stocks I wouldn't be surprised to see further downside below $4. The Lundin family has a stellar record developing natural resource projects and they are large shareholders in Lundin Mining. The Lundin family has incentive to improve the share price. I believe the Congo project, with increased cost estimates, is weighing down on LMC. Freeport has agreed to finance any overruns in the cost estimate originally given to Lundin Mining at favorable terms.

As far as CDE, I believe the stock is a favorite of precious metals shorts. CDE is prone to heavy volatility. If you hold onto your believe that silver is in a long-term uptrend, CDE is a great place to be given that they are poised to be one of the largest silver miners in the world. Bolivia is being developed at a timely pace and the performance of CDE is centered around the short-term fall in silver prices.

I've posted more detailed analysis in the past about LMC and CDE on my blog.

Cheers.

Value Investing: Going for the Gold (and Silver)

Dear All,

I didn't republish the article on my blog.

Best,

Andy