On Bill Cara''s thread today post # 21For those of you who are interested in a low-risk junior silver play, take a look at US Silver (symbol USA on the Venture Exchange). It's a similar story to the Western Goldfields one where a big company could not manage the mine properly, costs got out of control, so they dumped it. You now have a small aggressive operator bringing costs down and working the mine hard to prove out reserves. They bought 3 mines in total from Coeur D'Alene which have produced over 200 million ounces of silver over the last 50 years and are in the process of drilling it out. They now have over 50 million ounces of silver discovered (counting proven, probable, measured and inferred) and lost of promising mineralization. They are a producing mine in the US with all permits, a 60 year tailing pond and are cash flow positive as of March. They project to be producing 4.3 million ounces per year by year end with cash costs of $5 per ounce, with another 1.5 million ounces by mid-2008. They have strong management, a lot of good potential for additional reserves. Market cap is about $240 million, so with $13 silver, cash flow will be $46 million. If this is give a Coeur D'alene type multiple of 10 times cash flow, you can easily see a double from here.
Take a look at us-silver.com for more info.
https://www.billcara.com/archives/2007/05/caras_daily_board_wed_may_23_2.html#comments