Breakwater Resources* (BWR : TSX : $2.14)
Net Change: -0.01, % Change: -0.47%, Volume: 4,218,304
You can search between the sofa cushions for loose change - or buy some
Breakwater. Breakwater continues to generate significant cash. Canaccord
Adams Metals & Mining Analyst Orest Wowkodaw forecasts the company's net
cash per share position to reach a relatively impressive $0.47 by year-end
2007, rising to $0.93 by year-end 2008, representing 21.7% and 42.3% of
Breakwater's current share price. Given the company's forecast net cash
build and deep valuation discount, we continue to anticipate Breakwater to
approve a share buy back program in the coming months. Breakwater currently
has three producing zinc mines: Myra Falls in British Columbia, El Mochito
in Honduras, and El Toqui in Chile. In addition, Breakwater is currently
developing the Langlois zinc mine in Quebec, Canada with commercial
production expected to commence in mid 2007. At the end of 2005, Breakwater
had total proven and probable reserves of 14.3 million tonnes grading 7.7%
zinc (contained zinc of 1.1 million tonnes) and measured and indicated
resources (including reserves) of 20.2 million tonnes grading 8.8% zinc
(contained zinc of 1.8 million tonnes). This year, we anticipate production
of 126,739 tonnes of payable zinc, up 39% from expected 2006 levels,
largely due to the startup of Langlois. |
