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Starcore International Mines Ltd T.SAM

Alternate Symbol(s):  SHVLF

Starcore International Mines Ltd. is a Canada-based company, which is engaged in exploring, extracting, and processing gold and silver. The Company through its wholly owned subsidiary, Compania Minera Pena de Bernal, S.A. de C.V. (Bernal), which owns the San Martin mine in Queretaro, Mexico. It is also engaged in acquiring mining related operating assets and exploration assets in North America. Its San Martin mine is located approximately 50 kilometers (km) east of the City of Queretaro, Mexico, and consists of mining concessions covering approximately 13,077 hectares (ha), which includes seven underground mining units and four units under exploration. Its Ajax Molybdenum property, approximately 1,718 hectares in size, hosts the Ajax Porphyry Molybdenum Deposit. Its Opodepe project consists of the Teocuitla and El Creston properties. Its El Creston molybdenum property is located in the State of Sonora, Mexico. Its Toiyabe Gold Project is located in Lander County, Nevada, United States.


TSX:SAM - Post by User

Post by northernbullon Jan 24, 2012 9:09pm
485 Views
Post# 19444694

Cambridge Show

Cambridge Show

I stopped by the Starcore booth at the Cambridge show on Sunday and talked with Luke. I didn't have a lot to ask them, because let's face it: its pretty much just a waiting game. I did ask about the immediate plans for the free cash flow after the hedge is gone, and although acquisitions are possible, it seems to be agreed upon that exploration of San Martin to expand the resource base will be the immediate priority. Although the mine has been able to keep 2 years of proven reserves ahead of itself for years, we'll never get a proper multiple unless we can prove a reasonable mine life.   However, I also asked about the potential of maybe getting rid of the loan early and I kind of got an odd response/lack of response. body language told me I was maybe on to something so I inquired further about the cash situation, the remaining loan amount and the amount of free cash that could be generated this quarter if things stay consistent. I tried piecing things together based on questions they could legally answer and I'm drawing my own conclusion that the loan will be paid off before January 31st of next year. Again, they didn't say that and I'm speculating (like many of you have probably already done on your own). As for the ounces of hedged gold, I'm not sure if we'll be in the position to deliver those early, but it sure would wake up the market if at least the loan disappeared a quarter or two early.  As for my one complaint, we were there under the iMining group again, so we're sharing our exposure with other companies in the group. I didn't mind sharing costs while we were suffering, but now that we're emerging from the woods, i'd really like to see our IR campaign expanded. The story is worth putting out there now and it'd be great if someone was focussing on us alone. The other guy at the booth was trying to promote the other companies to me, but that annoyed me. I was there because I was excited about Starcore and he was essentially changing the topic to other plays. It should be an exciting year for us, I think its time we go all out to reward some very tired shareholders who have held in here for years. In addition, Eadie should attend these things. I talked with the president or vice president of all of my other plays, but all I get is IR with SAM. Regardless, I think this play will heat up a little earlier than I have been planning for. Good luck

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