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By the Numbers, Mining Stocks are Undervalued

Great read! The numbers dont lie - if you like it or not. This article really gives a new perspective, keep going.

Thanks

Central Sun Mining: When the Dust Settles, Juniors Will Shine

Obviously you lost money with Glencairn - but if I understand the author's opinion right, he thinks Central Sun is a good turn around play with considerable upside, right? If you value turn around situations than you have to check the changes a company made instead of what happend in the past. As for Bellavista - to my knowledge the mine had to be closed because the leach pads began to move - that's a ecological problem and I doubt if anybody could foresee something like this. Anyway, Peter and the new team (which is in my opinion the key and I do agree with the author in this respect) have done the right changes, converting Orosi from heap leaching to milling and improve production greatly. The restructering was the only way to bring the company back on track - there are only few companies with this kind of performance in the last 6 months. In my opinion the new team is the key - they have Forbes & Manhatten involved, which is a pool of highly respected mining professionals. Remember they did (this includes Peter), Desert Sun Mining! this company was acquired by Yamana Gold for over 700m $. They also did Consolidated Thompson Iron Mines (CLM) or Largo Resources (LGO) - LGO just entered into an off-take agreement with Glencore. This group has great success - CSM is also benefiting. I do like the story and I think, CSM is a easy double if the can achieve their production target in 2009. But you're right there are many nice investment opportunities around - the article made it pretty clear - but again I also got burned with early stage companies and low scale producers....I dont touch companies with less than 100k ounces p.a. production any longer......

Central Sun Mining: When the Dust Settles, Juniors Will Shine

Halfway true, Glencairn Gold messed up with Bellavista in Costa Rica - this was the reason the stock dived and the company had to be restructured. BUT this was really bad luck - Orosi and Limon are the core mines and the new management team is doing a great job there. Just remember Peter is the former COO at Yamana's Jacobina mine (producing 145k in 2008) he is a great engineer. If you check out the new management and board of directors you will figure out that they have a great team together. Sometimes a company deserves a second chance, especially if they are on the right track again. CSM is a major recovery story IMO - sure market is still sceptical if they can achieve their production target in 2009, thats the reason for the discount vs peers. Lets see how they progress.