Guanajuato Silver Co.
Chen also likes Guanajuato Silver Co. (GSVR:TSX.V; GSVRF:OTCQX), which acquires and breathes life back into mining projects, overbuilt or overlooked by past operators, in Mexico's Guanajuato silver district.
Once a new project is part of its portfolio, the company optimizes the operation, rapidly improves productivity, and seeks to extend the mine life through exploration and new mineralization sources.
The company this week released a positive Preliminary Economic Assessment (PEA) that envisions a six-year mine life at its recently acquired El Cubo mine and processing plant. Guanajuato restarted production there in 2021.
"Their future looks very good from here," Chen said.
The company is on its way to becoming a leading producer in the district. In April, it caught the attention of Echelon Capital Markets, which launched research coverage on it.
"From just one mine and plant producing 2,100,000 ounces of silver equivalent (2.1 Moz Ag eq) at a US$20.89 per ounce ($20.89/oz) all in sustaining cost (AISC) in 2022, we look for production of close to 6 Moz Ag eq per year with sub-US$18/oz AISC by 2024 from four mines and three plants, with management also focused on additional growth opportunities through further district consolidations and mergers and acquisitions opportunities," analyst Gabriel Gonzalez wrote in an April 20 initiation note.
Echelon initiated on Guanajuato Silver with a Speculative Buy rating and a CA$0.85 per share target price.
Streetwise Company Fact Sheet 2023/7/4 3:46:12
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Cerro de Pasco Resources Inc. (CNSX:CDPR; OTCMKTS:GPPRF)
According to Yahoo Finance, about 20% of the company's shares are held by insiders, and about 3% are held by institutions. The rest are retail.
Endeavour Silver Corp. owns 8.52%, Fidelity Management & Research Co. owns 7.31%, Director Daniel Oliver owns 4.59%, ETF Managers Group LLC owns 3.03%, and Chairman and Chief Executive Officer James Anderson owns 2.05%, Reuters reported.