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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (23631)	10/27/2006 1:32:51 AM
From: Mr. Aloha	Read Replies (2) \| Respond to of 78417

Yes, there are lots of problems with new mines coming online, which is very bullish for metals prices. I think one reason the producers have done better the last few months is because their cash flow kept them from dropping even further. It's easier to analyze the value of a producer and put a floor in on their stock price because of ridiculous valuation in terms of free cash flow multiples than it is to determine the value of a preproduction junior miner. All the problems with other junior miners also causes the good ones to be thrown out with the bathwater in the sector selloff we had. I think during the next upleg, the cream will rise to the top, as the best junior miners recover and hit new highs while the ones with the problems struggle.