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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: marcos who wrote (56464)2/13/2008 1:49:28 PM
From: loantech  Read Replies (2) of 78410
 
Really glum about USA missing ILDS but maybe there are other fish to fry. Wonder about the Crescent mine. Of course it is flooded. Don't know if the have EPA problems or not but I like the idea of consolidation in silver valley. Lead prices back up too.

A week or two back Claude and I talked a bit about USA. They should produce about 2.8-3.5 million ounces of silver this year which is pretty good. What was left out of that equation was the sale of 25-30 million dollars worth of lead and copper bringing their costs way down on the AG side. I still think USA could hit 1.40-2.25 this year but only I think that as the market does not agree.

If base metal credits lower costs to 2-3 dollars per ounce silver and they net 12 bucks on 3 million ounces that is still 36 mill in profits and about 14 cents a share and certainly they deserve a 10 multiple when HL gets a 40 multiple or there abouts.

How about doing some rough numbers of your own and maybe you will take to liking USA even more. <G> Please post what you get of you do not mind doing the exercise.
Tom
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