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ducat

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  • Why You Should Buy Silver Before It's Too Late [View article]
    Crabster_ Indeed you are correct that CDE did the reverse spit of 10 to one when they got caught in the 2008 whip out. They were in a position of being delisted with a price of ~<$1.00 while trying to bring on two large mines. Bad timing...or bad management???

    At least they were able to survive that dire situation and live to be in a position to do quite well if the PM prices increase. The share price has increased from a low of $3.60 ($0.36 in per-split terms) to the current ~$8.00 level. During this time they have managed to bring on line those two large mines and set themselves up to just fine if the PM prices head back up. Would it have been better if they had gone bankrupt rather than proceeding bringing the mines on line? This mining is a risky business and sometimes things don't come out the way they are planned. If you sold at that $0.36 level, I can sure understand your disdain for the company. As t turned out, I bought some at that low-low level..which explains partially why I have a positive attitude toward the company. Time will tell us if my trust is rewarded.
    Aug 27 12:24 AM | 1 Like Like |Link to Comment
  • Why You Should Buy Silver Before It's Too Late [View article]
    Make that CHAD..sorry. Forgot to mention that the new "fixing" arrangement will likely not change the manipulation game with the CME crew involved...my opinion anyway.
    Aug 26 04:12 PM | Likes Like |Link to Comment
  • Why You Should Buy Silver Before It's Too Late [View article]

    chat_ I hope you have your hat on.Writing positive of Coeur can be dangerous to one's ego. Perhaps the most hated of the PM producers? But I do agree with your assessment that the company is severely under priced and due for a serious share price increase. With silver and gold at these prices, CDE is hard pressed to make a profit. Things may improve even if the ~$20 and ~$1,250 metal prices hold, but any real profits await the probable increase in those prices. Coeur is not alone. Most silver miners are struggling in this $20. range.

    Palmarejo, Coeur's largest mine has been hamstrung with a 50% gold royalty with a minimum 50,000 ounce per year requirement. They have had to churn though a full capacity amount of relatively poor silver ore to satisfy this gold commitment. This will change in about a year and one-half time due to a change in the re-negotiation of the royalty arrangement with Franco-Nevada. At that time, the minimum will disappear and FNV will increase the $400. per ounce payback fee to a new $800 level. In the meantime, Coeur is storming ahead with developing the adjacent Guadalupe Deposit that will provide more gold per ton (less possessing costs). Nevada is providing cash to facilitate this change beginning in the first quarter of next year. This move should save some silver resources and be a life of mine benefit when silver prices recover. Thanks for your article.
    Aug 26 04:07 PM | Likes Like |Link to Comment
  • Coeur Mining's Assets Are Worth Far More Than Its Current Market Cap [View article]
    Investment Doc_ You say:

    " But at this point in time, it's just a piece of dusty land. Your 100M can't be anything else than 'anticipated' value, but that is 100% conditional on the silver price and nothing else."

    Are you saying that if silver drops down to $15/0z next month, vertically every silver miners' assets will be worthless? I don't think so.

    You are aware that First Majestic worked hard to buy La Preciosa at well over $100 million when silver was ~$25/oz. And yes, all silver property valuations have to be "speculative" because the price of silver can swing violently up or down. I think the supply/demand fundamentals suggest we will see a much higher price in the not so distant future. That makes this whole argument mute..especially because Coeur will not be offering LP for sale to test the real value.
    Aug 14 11:13 AM | Likes Like |Link to Comment
  • What Is Keeping Silver Down? [View article]
    james_ I hope you are wrong...but I think you have it right. This is a dangerous time with so called free world leaders willing to take any measure available to entrap Russia in an iron circle.
    Aug 13 05:57 PM | Likes Like |Link to Comment
  • Update: Coeur Mining Earnings [View article]
    Investment Doc_Good explanation of the fact that a quick look at Coeur, or even most PM miners, "earnings" alone gives an incomplete picture of company health. Appreciate how you laid that out. Where I think you oversimplified your criticism of the company is when you say:

    "think that the acquisition of Orko Silver to get its hands on the La Preciosa silver project in Mexico was a very stupid move as the project definitely isn't viable at the current silver price."

    Silver had only recently dropped to the $20/oz range when they bought out Orko (April 16, 2013). As I recall, there were very few analysts venturing to propose silver would go below $20, let alone remain at these depressed prices for many many months. Then too, The bulk of the purchase price was satisfied with Coeur Shares that were valued at ~$15/share at the time. Orko was picked up really cheap if the price is recalculated using today's share price. And, the competition with Majestic for the deposit was keen. In sum, I think it would be much fairer to say Coeur had bad timing luck, rather than having made a "stupid" move.

    The company will look brilliant when silver makes a base above $25.00/oz and the decision to delay construction is reversed in a heart beat. Thanks
    Aug 7 07:33 PM | 3 Likes Like |Link to Comment
  • TriMetals Mining Is Moving Forward And Has Significant Upside Potential [View article]
    Ben K-M_ Thanks for taking the time and effort to detail this unloved little company. One issue unaddressed in your effort is the recent passage of the new Bolivian Mining Law. With that document signed by the president it could seemingly increase the potential for a honest settlement with the company over the expropriation of the Malku Khota. Little has been reported on the specifics of the Law, I have read that it codifies the constitution's prohibition forbidding the taking of private property. While there may be no retroactive action covered under the new law, the fact that the Morales Administration has verbally committed the country to an investment friendly path might suggest they need to clear the books on this one.

    The most descriptive comment I have read (in English) is an article based on the comments of the Bolivian Finance Minister was found in this release:

    "Asked about the legal certainty the government provides foreign investors, Arce said Bolivia’s constitution offers guarantees for foreign as well as domestic private capital. He also noted that recent legislation, including a new law enacted in April, provides investment incentives."

    http://bit.ly/1lRbZHJ

    If any reader has a link to any decent discussion of the law, a post of it would be appreciated. I have no idea why the passage of it has been largely ignored by the press. And, yes, I am one of the legacy bag holders of the old South American Silver company and have some of the spun-off B shares.
    Jul 8 12:04 PM | Likes Like |Link to Comment
  • 9 Reasons For Gold This Year [View article]
    Itsg_ Your figures appear to be correct. I wonder if Han has seen some data on the gold to be, or has been repatriated from France. That amount was to be 394 ton compared with the US shipments of only 300 ton. I don't see this story going away. Meaningful sanctions against Russia could result in heightened use of gold as a developing world medium of exchange. This should shine a light on CB gold holdings of all countries.
    Jul 5 12:43 PM | 3 Likes Like |Link to Comment
  • Organic Growth Ahead For Hecla Mining [View article]
    Itinerant_ Creat job of describing of the Hecla story. What I am amazed at is the success HL has had in dealing with large expenditures in the last four years and still having a net debt of$306 Million. They have paid out $476 Million in capex, mostly due to very cost effective expenses at Lucky Friday and Casa Berardi. The company also settled a $267 Million Superfund bill associated his historical mining activities in the Silver Valley...note, this was not a fine or penalty for any environmental violations as some have charged. The law requires proportionate sharing of cleanup costs even if the causation activity was legal at the at the time it happened.

    I think Hecla is about as safe PM miner as there is out there in the sector.
    Jun 27 04:45 PM | 4 Likes Like |Link to Comment
  • Coeur Mining: A Brief Look At Its Plans For The Guadalupe Underground Mine [View article]
    Heather_ I believe your comment:

    "...there's a good chance shareholders could see the company's share price surpass $10/share and full-year revenues exceed the $700 million by the end of 2015."

    significantly low balls Coeur's potential earnings. Last year the company had revenues of $746 million. Their silver price received was only $23.14 for the year.

    The company's "other" flag ship mine, Rochester, is looking at an excellent rebound this year with silver production in the 4.3 million ounce range..up from 2.8 million ounces in 2013. Gold is projected to remain about the same year over year at Rochester. The other two major Coeur mines are on target to produce close to the 2013 levels. The only way I see the company having a paltry revenue of $700 million this year is if silver price remain in this $20 range. And, your quote carries though next year when the new Palmerejo mine plan will have been in place for over half the year. I expect those silver rich ore grades will make a world of difference. Of course, I anticipate that we will see sliver prices move up appreciatively in the next year.
    Jun 24 05:33 PM | Likes Like |Link to Comment
  • Is Silver Set Up For A Huge Short Squeeze? [View article]
    Indiana_ Fun read! thanks for your effort. But what is it with this statement that I don't understand?

    "C. O. T. Report showed that the banks had one of their lowest short positions and they had their all-time largest short position,...." Seems like it should read "...all-time largest (long) positions"

    Dave K_ Good job on your article. Good to see some positive assessment for silver future price. thanks
    Jun 13 03:47 PM | 1 Like Like |Link to Comment
  • The Most Important Takeaway From The ECB Meeting For Gold Investors: The ECB Won't Fail Like This Again [View article]
    Hebba_ Thanks for the informative article and the explanation (again) on why you need to use the GLD ticker to represent gold. One thing about SA is that they seem to be quite liberal on what they allow printed in this comment section. Also, appreciate the opportunity to receive your newsletter.
    Jun 8 12:41 PM | Likes Like |Link to Comment
  • U.S. Investors Buy Early During This Gold Market Rebound [View article]
    Tim_ As usual, I enjoyed your article. Appreciate the effort you put into your comments. However, I wish you would amend your comment containing: "sales of one-ounce gold coins rose to 4,755,000 in January," You are of course aware that this number of coin sales is for silver, not gold. Still that is an outstanding figure. As I recall, back in the late 1990s only ~4 million Silver Eagles were sold ANNUALLY.
    Feb 10 07:57 PM | Likes Like |Link to Comment
  • What The Marigold Purchase Means For Silver Standard Shareholders [View article]
    BenKM_ Good job of detailing the specifics of this deal relative to SSRI's cash flow picture. I agree with the majority of positive remarks in this comment section. You used a sharp knife to carve out the potential cash flow expectations and still came out showing this to be a great buy. Especially so for us long time holders that have stared at the quiet pond for years. One thing you didn't mention was the reference made in the news release that there are some outstanding NSRs attached to Marigold's production. As we all know, these instruments can turn out to be a serious drag on income. Thanks for your work.
    Feb 10 11:32 AM | Likes Like |Link to Comment
  • Prepare For A Shortage Of Physical Gold [View article]
    Indiana_ Thanks for the response. In light of your explanation, I still don't quite understand the often stated figure of longs holding claims on gold ounces at a ratio of over 100 ounces for every ounce available in the Comex registered category. I do understand that all most all long contracts are either settled in cash or rolled over to another month. I will keep your one to 2.4 ounce ratio in mind when reading about this situation. Hebba probably is my best source as he deals with this subject regularly. Keep up your frequent commenting posts as they provide valuable information.
    Feb 4 08:12 PM | 1 Like Like |Link to Comment
COMMENTS STATS
235 Comments
276 Likes