RE:RE:RE:RE:Orvana tsoprano1,
Regarding your portfolio of "slugs", I would not consider any gold or silver producer stock that is in the bottom 30 stocks ranked by valuation as a "slug". It is merely a stock whose value the market has not yet recognized and considering the last 4 year price suppression on the price of gold, any gold or silver producing stocks still in production today are survivors . So the bottom 30 by valuation are a buy just based on valuation, and the larger gold equivalent producers within this subset of gold and silver stocks are a MUST BUY.
A couple of weeks ago, Eric Sprott gave his advice on picking stocks. He said that you should look at situations where you are stealing value--namely stocks that are selling at low valuations, but where the gold production will be increasing in the future, or where gold grades are low now but would be increasing in the future, and where these future events haven't been priced into the current market valuation.
Here's my list of the bottom 40 junior gold and silver stocks ranked in order of their market cap to quarterly gold production valuation:
So Orvana is one of the must buy stocks on my list simply because of the ramp up in gold production at Don Mario where the grades are doubling while the gold recovery increases by 20 percent and at El Valle where the gold head grades are set to double as a result of the transition of underground mining to high grade oxide areas--all this at a capital cost of less than 20 million dollars! Name one mine where production will double at a cost of less than $20 million dollars!
The only other miner where gold production will double within the next 12 months at a cost of less than $20 million dollars is Aura Minerals (ARMZF in the US and ORA.TO in Canada). Aura Minerals has put a third gold mine into production, and this is the Ernesto Pau a Pique project in Brazil, where they acquired a 3000 tpd CIL plant from Yamana Gold along with 2 underground mines on care and maintenance. The EPP project will replace gold production from the Sao Francisco mine which is going into mine closure in 2017. But the EPP project is the equivalent of adding a Caledonia Mining sized MRP with a high grade underground gold resource on top of Aura Minerals 20k oz/qtr low grade heap leach San Andres gold mine in Honduras. So Aura Minerals will be a 40k oz per quarter pure gold producer, and the stock is priced at a valuation of $1325 USD per ounce of quarterly gold production as of February 24th.
Because they recently did a 10 to 1 reverse split the stock float is down to 29 millon shares, and of that share float, 85 percent is comprised of strategic investors. So the publicly traded stock float is less than 4 million shares. So ARMZF is on my must buy list along with ORVMF.
Aura Minerals also has a fourth copper mine, the Aranzazu mine in Mexico which is a mine that produces a copper concentrate with gold and silver by product, but that is not economic until the copper price hits $3 USD. So ARMZF is a call option on the price of copper along with being an excellent long term investment.