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  • Update: Coeur Mining Receives Maiden Resource Estimate For Independencia [View article]
    Interestingly, the "ore grading 6.24 oz per ton silver and 0.082 oz per ton gold." comes out real close to a 50/50 ratio of value when using $16 silver and $1,200 gold metal prices.(~$100 per ton for each). Unfortunately, silver is recovered at a lesser percent than the gold...making Palmarejo more of a gold mine which it has not been in the past. This will likely change again as silver prices should out-gain gold in the next big rally.
    Dec 24, 2014. 01:48 PM | Likes Like |Link to Comment
  • Update: Coeur Mining Receives Maiden Resource Estimate For Independencia [View article]
    Invest Doc_ Thanks for getting back to me with clarification. I think I better stick to grams per ton as the (gr/t x m) formula doesn't ring clear to me as a useful guide unless I have firm 3 dimensional distance measurements. Coeur does make it clear when they say that Don Ese contains 4 million tons of ore grading 6.24 oz per ton silver and 0.082 oz per ton gold. Good, but not spectacular, in my opinion. Grade is enhanced by the fact that Coeur has the mill and operating experience to get very high recovery. The tunnel to reach it and Independencia was in the planning stage prior to the buyout and thought to be relatively easy (and cheap) to develop.

    On the distance thing, Coeur says in the narrative that: "Guadalupe development and mining are only 800 meters from Don Ese". Maybe the difference is your measurement to the "hot spot".
    Dec 24, 2014. 01:31 PM | Likes Like |Link to Comment
  • Update: Coeur Mining Receives Maiden Resource Estimate For Independencia [View article]
    Investment Doc_ Good quick review on the new results at the Indepedienca Deposit. The way I see the location on Pages 9&10 of the Coeur release on the purchase of San Miguel it is a more assessable than your: "the Independencia zone is located just half a mile away from the Guadalupe zone." would suggest.

    In fact, it looks like the Inde zone sides right up to the Miguel, Don Ese vien. Did you notice that on the Page 10 D Ese map, it shows a massive block with grades above 5,000 grams per ton silver equivalent? Am I reading this correctly? Thanks
    Dec 23, 2014. 04:49 PM | Likes Like |Link to Comment
  • Update: Golden Arrow Increases Private Placement [View article]
    Itinerant_ Thanks for the update on this company. The Chinchillas Deposit looks extremely good given the size and location. It is worth a look at the Arrow's home page. Thanks
    Dec 23, 2014. 03:57 PM | Likes Like |Link to Comment
  • Silver's Bear Market Could Continue For 2-3 More Years Due To Increasing Mine Supply [View article]
    Investor Talk_ You should be ashamed to say:" Silver bullion funds still hold billions of oz of silver which can flood the market on as needed basis." without informing us where you have found this hidden hoard of silver. Those who specialize in tracking PM supply and demand dynamics see no more than a billion ounces available for trade. To find records of "billions" one needs to go back to the 1960'era. President Johnson stated the reason silver was being removed from coinage in 1965 was because there was insufficient silver to cover the coinage demand. Other countries followed suit. The resulting conversion of coins to silver supply did result in "billions" of ounces being available. That silver has mostly been consumed and gone forever.

    I agree with other comments to this article that relate to the fact that most of current mined silver production comes from base metal operations. This is the primary fault in author's calculus. He speaks only to the Primary silver producers who produce less than 30% of total mine production. He also fails to mention that some silver miners have already cut production.
    Dec 11, 2014. 02:06 PM | 3 Likes Like |Link to Comment
  • A Coeur Takeover Of Paramount Makes Sense For Both Companies [View article]
    HAI_You covered a lot of ground in this short analysis but there are a number of questions unanswered before your conclusion that: "I" would be all for this transaction" would fit my standards

    My concerns mostly revolve around the cost to Coeur issue as mentioned by Slam-Dunk. The only indication of what that cost might be is this comment from the writer who broke the original rumor. She said: "Under the terms being negotiated, Paramount shareholders would be paid in Coeur shares, the people said. Coeur and Paramount have a market capitalization of $425 million and $107 million respectively." Does this suggest that Coeur would give up a ~quarter of current value? I hope not. As SD says, Coeur has a very strong stable of mining assets. At Palmarejo alone they have drilled less than 1/2 of the large land package. Guadalupe alone is large but more importantly it opens up several other deposits that were discussed in the recent revised mine plan. That plan shows the direction they are going leads right up to the Don Ese vain that runs from PZG property right into Coeur's Palo district. Don Ese is of course the strongest grade ore in the Paramount findings. In sum, Coeur is not desperate to make this deal. It may be a good move, but only at the right (not 1 for 4) price. Maybe 1/10th of Coeur's market cap (~$45 million) would make sense.
    Dec 4, 2014. 04:12 PM | Likes Like |Link to Comment
  • Gold miners surge as gold closes above $1200, takeover speculation [View news story]
    Of the stimuli mentioned, I believe the " India easing its import restrictions" is the most significant listed. Underlying this surprise move is the radical change in that country's trade situation. With OIL price strongly down and India being a huge importer of that commodity, pressure is off.

    Gold imports now have room to grow. As Robin Steel notes above, all nations are in a rush to devalue their currency; India does not need or want a strong balance of payment surplus that strengthens the Rupee. What better way to balance the trade surplus than bringing in a treasured, non-perishable commodity that can serve the country's populous in future crisis situations. (note, my thinking on this matter was reinforced by a Comment on the SA Avi article) I am surprised the concept has not been put forth earlier as it seems sound and very PM supportive.
    Dec 1, 2014. 06:50 PM | 2 Likes Like |Link to Comment
  • Gold miners surge as gold closes above $1200, takeover speculation [View news story]
    Should not overlook the silvers:
    and PZG..22.73% driven by news
    Dec 1, 2014. 06:04 PM | Likes Like |Link to Comment
  • Update: TriMetals Mining's Q3 Financials [View article]
    BenKM_Thanks for the coverage of this overlooked company. I am a little optimistic about a settlement with Bolivia for the appropriation of the Malku Khota Project. I noticed that the country settled on another victim.

    "LA PAZ – Bolivia’s government on Thursday agreed to pay $36.5 million in compensation to Spanish electric utility Red Electrica de España for the May 1, 2012, nationalization of its subsidiary in the Andean nation, officials said."

    "In February, REE served an international arbitration notice to Bolivia’s government in which it demanded more than $200 million in compensation, but Bolivia succeeded in lowering that amount during negotiations, Arce said."

    Admittedly, The settlement will likely shortchange the company when viewed against what is being asked, but it won't take much to have an impact at the current market cap.
    Nov 14, 2014. 07:38 PM | Likes Like |Link to Comment
  • Update: Golden Star Resources Q3 Financials Show Significant Improvements [View article]
    Ben K-M_ Thanks for the coverage of Golden Star. I don't see much coverage of this struggling miner. I have some shares tucked away in an IRA that I haven't looked at in ages. Too cheap to sell. Your analysis gives me hope it won't be a total loss and when quantity once again becomes more important than AISC, share price might sail. I always view not selling at low prices is the same as buying at low prices.
    Nov 9, 2014. 01:15 PM | 1 Like Like |Link to Comment
  • Update: Coeur Mining Earnings [View article]
    InvesmentDoc_ I think it your search for brevity has unfortunately left out the main theme of Coeur's report and the referenced Investor Days Presentations. Specifically, the company has taken strong steps to increase the ore grade at Rochester, Kensington and Palmarejo mines. They make a strong case that in changing mining plans they will be able to do this without sacrificing mine life.

    At these three mining districts, they have large resources with higher grade ore that can be blended with their current run grades and demonstrate a profit at current metal prices. The quarterly 3rd Quarterly report substantiates at Kensington how successful this can be in lowering AISC. With Palmarejo, their largest mine, they have the ability to quickly move into a new richer ore deposit (Guadalupe) and augment the existing feed until a transfer to the new deposit takes place in a year or so. The work to begin mining at the Guadalupe has been progressing at brake neck speed and ore will be moving to the processing facility by the end of the year.

    I expect Coeur to significantly out-preform the competition in this sector as the new plans unfold. Albeit, further exploration will need to demonstrate the high grade reserves are there to substantiate rejuvenated long mine lives. Some new drill results are due out at year end. We shall see.
    Nov 7, 2014. 04:45 PM | 1 Like Like |Link to Comment
  • Update: Hecla Mining Earnings [View article]
    InvestmentDoc_ Good snapshot of Hecla report. One important note you missed in addressing free cash flow was emphasized in the Conference call:

    "Operating cash flow increased $7 million even after the payments of $55 million made in the third quarter of 2014 to satisfy the remaining obligation of the Coeur d’Alene Basin settlement putting that forever behind Hecla Mining Company. If one takes that payment out of the statistic for a truly comparable benchmark, operating cash flow for this quarter was $57 million,.."

    I don't see a safer bet in the sector when looking at high grade ore reserves, safe jurisdictions, product balance (~1/3 each from Zn, Au and Ag), capital expense flexibility and cash on the books. I agree, the company has the pole position when metal prices improve and probably a base metal competitive advantage in event we see even lower PM prices. Thanks
    Nov 7, 2014. 01:29 PM | 1 Like Like |Link to Comment
  • A Few Reasons To Be Bullish On Silver [View article]
    Avi_You seem to "often" take every opportunity given to bash sliver (and gold) bulls. This comment: "Also, when everyone was so certain that silver was going to 100.." is a typical example of your exaggeration tendencies. Obviously, not everybody was certain silver was going to $100....or it would have gone to 100.

    In fact, when I was able to score $60/Silver Eagle on Ebay in 2011, I sold a bunch of SEs that I had purchased in the early 2000s. I replaced most of what I sold when silver had come down to $35 with very little premium.

    I would respect you more if you would use some modifiers in your flamboyant writings. It would probably have been fair to have said: "Many or most everyone was so certain..."

    And yes, I do believe given the long term fundamentals, $35/oz silver is "stupid cheap" and is a utterly a gift at current prices.
    Oct 29, 2014. 02:50 PM | 3 Likes Like |Link to Comment
  • Is SLV A Better Buying Opportunity Over GLD? [View article]
    David @ IB_Thanks for the correction. Like I said, the numbers vary. These are two snippets form reputable sources:

    "2,982 tonnes last year, according to GFMS estimates, up 4.1% from 2012."

    "In 2012 world production of gold reached a new record, it is estimated at 2 700 tonnes of gold (USGS)."

    Still, using your figures makes my point that that the ratio of silver/gold would suggest that the unit price of 71 ounces of silver to buy one ounce of gold is way out of balance.

    If one is to use recycle adds to silver, the same must be done for gold. Wouldn't change your calculated 8.4 silver to 1.0 gold ratio much.

    I have seen no where that figures for world mining production for gold have excluded the Chinese contribution. In fact, many writers have lamented that by including that non-marketable gold skews the real picture of how much gold is available to meet world demand.
    Oct 28, 2014. 06:22 PM | Likes Like |Link to Comment
  • Is SLV A Better Buying Opportunity Over GLD? [View article]
    John K_ I think if you look at annual mine output in metric tons for silver and gold, you will find that the ratio of silver to gold is in the 10 to one area. That would be about 2,600 metric ton of Au and 28,000 metric ton of Ag.(10.8 to one). Numbers jump around from various sources but these are close to the average. This is significantly more silver bullish than your suggested 20 to one mine supply ratio.

    If we had 5 billion ounces of readily available silver as was the case several decades ago, the current supply ratio would make sense. However, it appears there there is less than a billion ounces potentially available at any price for sliver. With current demand about a billion ounces this one year cushion appears to be extremely precarious for such an essential industrial metal which also serves as a store of wealth.
    Oct 27, 2014. 05:30 PM | 1 Like Like |Link to Comment