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Starcore International Mines Ltd T.SAM

Alternate Symbol(s):  SHVLF

Starcore International Mines Ltd. is engaged in precious metals production with focus on Mexico. The Company is engaged in extracting and processing gold and silver in Mexico through the San Martin mine in Queretaro, Mexico. The San Martin mine is located about 47 about kilometers (km) in straight line, northeast of Queretaro City, Queretaro State, on local road No.100 and about 250 km northwest of Mexico City, near the towns of Bernal, Tequisquiapan and Ezequiel Montes. The San Martin mine complex consists of eight mining claims that cover 12,991.7805 hectares (ha). Its Kimourko Gold Project is located in the Lac region of central Ivory Coast, about 40 km south of the capital, Yamoussoukro. Its other projects include the El Creston Project, the Opodepe Project, and the Ajax Project. The El Creston molybdenum property is located in the State of Sonora, Mexico. The Ajax Molybdenum Property consists of about 11,718 ha and is located 13 km north of Alice Arm, British Columbia.


TSX:SAM - Post by User

Comment by Henrich428on Aug 30, 2021 1:11pm
133 Views
Post# 33782110

RE:RE:RE:Starcore has enormous potential

RE:RE:RE:Starcore has enormous potential

Thank you that is highly interesting to hear. I am not actually opposed to a dividend as such and I can imagine that a dividend of some kind might be appropriate. But my first impression of Starcore, from reading ceo.ca, was essentially: "This is a small little company with limited potential. Very profitable for the time being and good financials on paper, but the mine-life is uncertain. We should get rid of El Creston as fast as we can while molybdenum prices are high and then just keep paying all profits from San Martin to shareholders until it finally runs out of resources." The tone seemed completely lacking in ambition and was the reason why I never gave Starcore a serious look until recently. I had no idea about any of the stuff that I learned recently, namely (to recapitulate what we have said):

1) The CEO Robert Eadie is a massive shareholder who owns 6.3% of the company, never sells shares, and is a sea of green in the SEDI going back to 2015.

2) Both San Martin and El Creston are enormous land-packages making up a total of 270 square km, 59 square km larger than Impact Silver's Zacualpan district (211 square km).

3) Both San Martin and El Creston are epithermal deposits.

4) El Creston has the potential to be drilled and developed for gold and silver and to become a producer of gold/silver concentrate by utilizing the cash, workforce, and infrastructure at San Martin.

5) The CEO is very ambitious and actually wants to do this.

6) El Creston also may turn out to be a massive copper mine. 

7) The CEO has great focus and sold the Toiyabe project in Nevada so that he could exclusively concentrate on his Mexican ambitions, instead of running around uselessly drilling loads of properties all over the place like many juniors.

8) He also had the business-sense to retain shares in the company that will now be drilling Toiyabe, so that he will share the upside potential of Toiyabe should its potential come to fruition.

So the story has now changed in my mind to one which appeared dull and boring and lacking in ambition to one that is exciting and full of potential, with a CEO who appears to have both the motivation and the business-sense to get things done. The low PE ratio, excellent share structure (basically no warrants and options) and the large cash and assets position relative to market cap were already enticing. But now SAM has become one of my favourite companies.

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