Gold and Silver Juniors, Mid-tiers and Producers Message Board

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

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To: koan who wrote (32672)	2/12/2007 7:54:55 PM
From: Claude Cormier	Read Replies (3) of 78419

Koan, may I make one comment... EDR looks interesting... but its silver numbers translated into gold implies: 1) probable annual production of 60,000 oz gold eq 2) resources of 720,000 oz of gold 3) proven & probable 60,000 oz gold 4) market cap of $300M fully diluted. This means that this silver stock (like most silver stocks) is more expensive than its peers producing other metals. Silver is really attracting investors creating some sort of "silver premium" It is interesting to compare these silver stocks to others.. One comparison I like is to compare them to RNG. Rio Narcea will produce 100,000 oz of gold per annum (and already have $75M of nickel cash flows. The Ni alone will be 3-4 times more cash flows per year than EDR. Still, RNG has a market cap that is barely two times EDR markt cap. IMO, either RNG is a grand super bargain or EDR and its peers are overvalued. If RNG is not good enough a comparison, then compare EDR to Cumberland, Anatolia, Minefinders, European Minerals and all. They will produce 3+ times more metal in $$ (5.5 times in thecase of Cumberland) value than EDR and they are selling at 1.0 to 1.7 EDR's market cap. You can also use pure gold producers...I think you will find similar discrepancies... In conclusion, Silver is hot hot hot market...for now. Will this last? Time will tell.

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