LilNev2000's Blog Posts on People And Picks

Did you load up on silver stocks?

Sun, 06 Mar 2011 07:34:48

For the long time followers of my blog, hopefully you've loaded up on some of the producing silver companies I've mentioned over the past two years.
Companies like Great Panther Silver and Aurcana Corporation have gone up over 700% since 2009.  Endeavour Silver is up over 500% in the same time frame.  Hopefully some of you are enjoying your new toys or retirement off of those picks.  With silver over $35.00 an ounce, those three plays will continue to show tremendous gains.  They all have great production growth profiles.
Some other producers with a lot larger market caps that have and will continue to take advantage of this run in silver include Silvercorp and First Majestic Silver.  I see these two companies going on the acquisition front soon otherwise, they might be acquired.Have a blessed weekend.
Note: I'm not a registered investment advisor.  Make sure you do your due diligence before investing in any stock....

Top Silver Pick - Aurcana Corporation

Tue, 28 Dec 2010 12:31:01

Back in June 2009, I talked about Aurcana Corporation in my blog and it being a risky silver pick. Fast forward to today and the stock has gone up around 700% from June 2009. That rise was due mostly in part to the rise of silver, copper, and zinc. The scary part about this stock is that it still has room to grow.

Aurcana just raised 85 million in order to retire the silver stream agreement with Silver Wheaton and to finance their Shafter project in Texas. This means they will get full value for the silver they produce at their La Negra mine and have a 3.5 to 4 million ounce silver producer in Shafter in 2012. In order to raise that money Aurcana had to enter into a debt agreement with Sprott Asset Management as well as issue around 300 million shares in a private placement. Even with that extreme dilution once they have Shafter up and running they will be producing in the area of 5.5 million ounces of silver as well as producing copper, zinc, and lead.

Looking at comparable valuations, First Majestic Silver is a 7 million ounce silver producer and has a market cap of over a billion dollars. Granted First Majestic silver has a great production profile and could be a 10 million ounce equivalent silver producer in 2012-2013 time frame so its valuation has a premium to it.

Doing a rough comparison, Aurcana still has the power to be a $1.50 - $2.00 stock in 1-2 years as they move Shafter towards production. My calculation ...

New Aurcana Corporation Video

Sat, 08 May 2010 18:06:53

Here is an interview from The Korelin Economics report with Aurcana CEO Lenic Rodriguez. Aurcana recently announced a $40 million silver backed private placement to raise money for their Shafter Mine. For those of you with some free cash on hand might want to inquire about the private placement.

Aurcana Announces US$40,000,000 Silver Backed Unit Offering:
http://www.aurcana.com/s/NewsReleases.asp?ReportID=396360&_Type=News-Releases&_Title=Aurcana-Announces-US40000000-Silver-Backed-Unit-Offering

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