If US stocks are allowed, I'll suggest GORO.
Just 34 million OS, 2.6 million options, no warrants, no hedging nor forward sales.
Own 3 or 4 properties in close proximity in Mexico, all within ore trucking distance of each other. Have already raised the $$$ needed to enter production. Production slated to begin late 2008/early 2009.
They plan to grow the company through cash flow, not selling any more shares. Plan is 1/3 cash flow go to taxes, 1/3 to finance growth and 1/3 cash flow in dividends to shareholders. Lest you think they don't mean to really give 1/3 cash flow to shareholders, be aware that management is the biggest shareholder of all with about 9 million of the 34 million total shares.
Mainly gold/silver, after 1st year there will be some base metal credits. Cash flow should be over $1 per share in the first full year. After 1st year, expect increase in production and as a result, an increase in cash flow.
This is all possible due to few shares outstanding (and management means to keep it that way, and have a history of being tighfisted about share issuance). And also, much of the ore is near surface and fairly high grade, creating a very low cash cost.
GORO currently at $4.60. |
