RE: RE:Brian AckerOpportunus,
Buying misspriced assets is my strategy. I found ELR last fall at $1.05. I found ROK last fall at around 1.40. ROK went up and down for 4-5 months before it doubled. QUA should do very well, although I think next earnings might be down. They have the last of its hedge being cleared from the books this quarter and I'm not sure how that will show up. Once that is gone Quadra should really take off.
Blue Note is one that is very miss priced right now. They are starting their mill next month. They have a market cap under $200 million and will be producing 100 million pounds of zinc per year, along with 50 million pounds of lead, 1 million ounces of silver and 1.3 million pounds of copper. That should give them about $230 million in gross sales at today's prices, over 120% of market cap. Goldcorp's 2006 revenues were about 10% of market cap.
With an average reserve with 6.6% zinc, 3.45% lead, 0.34% copper and 86g/ton silver, at today's prices that's $375 of metals per ton, average... To put that into perspective, Penasquito's average metal values per ton is about $61. Usually better grades give better recovery rates
Blue Note's reserve/resource is about 20x its market cap whereas Goldcorp's is about 6x its market cap, but about 25% of that reserve/resource is gold that is at less than 1g/ton.