RE: David Morgan......What's up with MSV's Daddy? MMM Just " Base Metals " spinoff positioning? Or?
And Morgan. He's been in and out of MMM/MSV for a few years.
Now.....<<............................
Minco Silver is a company that
readers are familiar with, because we have recommended this company
previously. In fact, we actually did it indirectly, by you
suggesting purchases of Minco Mining and receiving shares in Minco
Silver essentially at a discount. This never actually materialized,
and when the sector grew weak, we were stopped out of our position
in Minco Mining. Successful investing requires discipline and the
ability to reevaluate projects with fresh eyes.
A major and most respected
security analyst from Cormark Securities has recently recommended a
speculative position in this company, and we agree. His target price
is C$3.50, roughly a double from the current price. Minco is trading
a big discount to its peers, similar to Mines Management and Sabina
Silver. Minco should have a low capital expenditure due to the
nature of the deposit and the fact it is located in China. We know
some of our readers prefer not to invest in China, and we respect
that but continue to emphasize that we are impartial, having met
with many of the Chinese involved in the silver market, through our
own visits and association with the Silver Institute.
The main concern with this project
is the fact it borders a river, and while some of my close
associates have informed me it is not a concern, others in fact
state it to be a potential area of concern. Presently, we know
almost every mine in existence has to deal with water issues, so it
becomes a question of reality versus perception. In our studied
view, this should not be a project stopper but something to address
in this report. Until the actual permit is issued, we want to remain
cautious.
The permitting process is to begin
before the end of the year. If all goes as planned, Minco Silver
should be in actual production in 2010. We have stayed on top of
developments with this company since Sean first visited the project,
and we wrote it up several months ago. Silver Standard had been one
of the early investors in Minco. Certainly, like all of our
speculations, these are higher risk situations. This stock in
particularly has been beaten up terribly and on that basis alone
looks like an opportunity.
All the recent news and activity
point to this company being fully on track to become a significant
producer of perhaps 5 million ounces of silver on an annual basis.
The material itself is clean and should yield higher recoveries with
lower-than-normal processing. At this point, we think the selling is
way overdone and we’re putting a buy on this company. We will not
use a stop yet, but try not to pay more than C$2, and these days
that means US$2 as well. This writer does not currently hold stock
but has in the past and plans on buying after this report has been
released to our readers.