FYI....Thought i'd share this with all.....:)
Another Morgan archives find - Jan - 2008 newsletter. Genco and Silvermex were on his " spec buy list ". What are the odds of that? mmmmm I'm not an authority on the " history " of these 2 co's that merged into the present SLX but after reading Morgan's 2008 updates on both co's...ya gotta wonder. What and the hell happened. Morgan currently likes SLX - if he liked 2? he should LOVE both together?
Comments?
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Company
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Symbol CAD (US)
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Initial Date
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Initial Price
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Profit (Loss)
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|
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Pitchstone
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PXP.V (PEXPF)
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3/2/06
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C$1.28
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+65%
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|
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Genco
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GGC.V (GGCRF)
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8/4/06
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C$1.90
|
+97
|
|
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Energold
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EGD.V (EGDFF)
|
1/02/07
|
C$1.40
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+232%
|
|
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Silvermex
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SMR.V (SLVXF)
|
3/3/07
|
C
.77
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+42%
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|
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Samex
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SXG.V (SMXMF)
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3/3/07
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C
.60
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+27%
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|
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Endeavour
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EDV.TO (EDVMF)
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7/2/07
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US$9-10.00
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-4%
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No stop
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Minco Silver
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MSV.TO (MISVF)
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9/30/07
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US$1.90
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+79%
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|
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Silver Crest
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SVL.V (STVZF)
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9/30/07
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US$1.10
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+26%
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|
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Impact Silver
|
IPT.V (ISVLF)
|
12/01/07
|
C $1.77
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+9%
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Silvermex Resources
(TSX-V:SMR.V; OTC:SLVXF)
Web: https://www.silvermexresources.com/s/Home.asp
30.8 Million Shares Fully Diluted
Recent Price: $1.04
2007 Performance: +44%
Silvermex Resources made significant corporate advancement in 2007. It is apparent that this was a year that Silvermex focused on the growth of its property portfolio. The company entered the year with two properties, one of which had been drilled the prior year, concurrent with the company’s IPO in July 2006. In spring 2007, Silvermex announced a resource estimate of 9.6 million ounces silver on that property, Peñasco Quemado. Throughout the summer months, a follow-up geophysical program was completed on this property, identifying six new targets that the Silvermex technical team is confident will expand resources.
Activity accelerated in Q3 and Q4. During this period, Silvermex announced four new projects, all in northwestern Mexico. Of these, two projects highlighted very impressive sampling numbers with assays coming in around the 3 kilogram mark. The acquisition to note, however, was that of San Marcial from Silver Standard. San Marcial contains a 14.26-million-ounce inferred mineral resource. According to the press release that announced the acquisition, the company intends to define a resource in excess of 50 million ounces silver at San Marcial. This acquisition also increases Silver Standard’s position in the company, as payment for the property comes in Silvermex shares over three years. This continued relationship strongly validates Silvermex’s abilities and future prospects for exploration success.
With a portfolio of six projects at varying stages of development, Silvermex management is confident that the properties in hand now will drive future resource growth commencing in Q1 2008. Silvermex plans aggressive exploration programs on multiple projects during the first half of 2008. The focus will be on increasing resources at Peñasco Quemado and San Marcial, along with work to establish new discoveries on other projects. Increases at these properties are anticipated to drive the increase of resources to a projected total of 50 million ounces silver during the coming year. If the company is successful in this, we perceive that there will be appreciable increases in the market valuation. At the close of the 2007 calendar year, Silvermex trades at a highly discounted market capitalization per ounce valuation and therefore still offers an opportunity to accumulate a position.
It is clear that this company is focused on building a significant asset base. The speed at which Silvermex has built thus far is impressive and if the company continues with that same pace, we expect their targets to be met and the market to react positively.
Genco Resources Ltd.
(OTC:GGCRF; TSX.V:GGC)
Web: https://www.gencoresources.com
40,570,624 Shares Outstanding
$18,405,908 Cash
Recent Price: $3.68 12/5/07
In 2007, the major accomplishments for Genco include the fact that over 55,000 meters of drilling were completed. Additionally the second 50,000-meter program is underway. Genco increased their reserves by 57% and resources by 280%. Clearly this is a company that has taken positive action during the past year and continues to build shareholder value. Finally, the company has a feasibility study underway for a major mine expansion.
During the period ended September 30, 2007, the company recorded higher mill utilization at La Guitarra, but as a result of the lower-grade ore and lower recoveries from the large-scale surface test mining operation, fewer silver and gold ounces were produced than the corresponding period in 2006. Mineral production has increased to near 2006 levels with the conclusion of the Creston test mining and the return to processing underground ore. The long-term value of the information gained from the test mining is expected to exceed the value of any short-term reduction in production.
For the nine months ended September 30, 2007, revenues were $5,475,664, cost of sales was $2,957,591, and gross income from operations was $2,518,073. The company posted a net loss of $2,512,375 and a net loss per share of
.08.
The company continued to incur higher administrative expenses in 2007, due to ongoing studies and other work related to future mine expansion. Overall, the company continues to be profitable on its mining operations while posting a net loss due to continued mine expansion work and non cash accounting items.
Assets totaled $46,243,773 at September 30, 2007, an increase of $23,798,698 during the period. Asset growth reflects the proceeds of financing activities, the ongoing development of the San Rafael Mine, development at Mina de Agua, and district exploration. Current liabilities decreased $698,240 during the period to $2,579,499 on September 30, 2007.
During fiscal 2007, the company will continue work to expand operations at La Guitarra, including further development of the San Rafael Mine. The potential to open new production centers at Mina de Agua and Nazareno continue to be assessed, and the company hopes to make production decisions on these areas during the year. Management is encouraged by the results of the recent test mining in the Creston area and will continue to explore options to exploit this substantial resource.
Genco believes that continued exploration of the Temascaltepec District will lead to significant increases in reserves and resources and the discovery of new areas of mineralization. As the district potential becomes better known, this information as well as information obtained from ongoing metallurgical studies will be used to plan future production and infrastructure expansion.
Kappes Cassiday & Associates has been retained to prepare a feasibility study for the construction of a heap-leach and conventional milling processing plant, with a combined total capacity of up to 5,000 tonnes per day. The study will examine several processing and production scenarios, and with the conclusion of the study, the company hopes to make a decision regarding expansion of production at La Guitarra.