Trey Wasser

Gold Stock Earnings to Shine in 2007

Sylvain,
In this article I only highlighted stocks on the BMO earnings list. I have never done a report on MNEAF, although I love the stock. It is a great story with a mine coming on line this year. They are partnered with Hochschild who operates 3 mines in Peru. They are a quality operator in South America. Rob McEwen owns about 30%. At todays price they are not really cheap in my matrix at $3500 and $400, but the San Jose mine is a "bootstrap" operation. Meaning they are getting the mine going for cash flow to explore the rest of the property. They have only explored about 5% of the known mineralization and have already found a third vein that will add to reserves. This is a very high grade area and I believe reserves will grow into the millions. They are also partnered with Xstrata on the Los Azules copper project. Early results are very encouraging.
MRB is another great story. Cash flow this year and partnered with Xstrata on El Campo. Not mentioned here as it was not on the BMO list.
I use $3000 and $200 because that is about the average of alot of companies and representaitve of recent buyouts of jr producers.

Gold Stock Earnings to Shine in 2007

I stand corrrected on the hedge price. It is probably a testiment to my point about Marone. They use the options and 2008 hedges to make it sound like they will sell copper above $3. Actually the 2007 call long options are at $1.67, so the 2007 hedges are increased by anything over that price. That is good input on the Brasilian mining. I dont think that many gold bugs will "cry foul" when Yamana starts producing copper at Chapada. Many gold mines, are actually copper mines. Chapada has a 2 year payback at $1 copper and with the hedges copper production is "monetized".
As for Hecla, I indicated it was a turn around story. I doubt you see any more dilution as long as they are profitable and sitting on $90MM cash. They are the low cost producer of silver. I think they probably do an acquisition this year. What they buy and what they pay will determine dilution. I have owned GBN on and off. They obviously did not fit into this report on profitable companies.