To: Earlie who wrote (272984 ) 1/9/2004 3:46:35 PM From: Franco Battista Read Replies (2) | Respond to Hi Earlie, nice to see you back. I've been a lurker here for several years and always enjoy your posts. Also got some of that Greystar, which along with my other precious metal investments has been doing great. What I've noticed with the gold shares is that the bigger cap stocks went up first (nem, gg, glg, hmy, gfi), followed this year by most of the junior stocks (bgo, wht, gss, iag. This got me thinking about the silver stocks. As you know, silver bullion did not start going up until recently. So I'm wondering if silver stocks will mimic gold stocks. We've seen the bigger silver stocks go up superbly in the past few months (paas, hl, sil, ssri). So I started searching for junior silver stocks that already have some production. On the Toronto exchange I found only one such stock (there aren't many junior silver miners around, most must have gone out of business!). The stock is called First Silver (fsr on the Toronto exchange). Doing some due diligence I was happy to see that the share price has not moved up like the senior silver stocks. Reading their last financials, I noticed that they had a problem at their mine site (broken piece of equipment), which is now fixed. But this mishap seems to have created a loss for their latest quarter. Had they not had this mishap, it seems to me that they would have been roughly breakeven. In a normal year they produce about 2.4 million ounces of silver at their mine in Mexico. In the prvious year they've been selling silver at about 4.75$ an ounce. They are totally unhedged according to their financials. So at 6.40$ an ounce they should now be a profitable operation (there are 38 million shares, so if current silver price is maintained, they should be running a profit of about 5 million CDN$, or 13 cents a share). The stock had a big run up today and traded as high as 1.62$.
