Re: AUMN shorts slightly lower...99921
in response to
by
posted on
Oct 26, 2011 05:46PM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Fear not folks. Rest assured that we are in the company of hundreds of thousands that can gripe daily about the share price of their favorite ball and chain junior stock. Here's today's most blatant example. some of you may know of it....no names mentioned.
This one is a junior somewhat special, commodity stock with massive resources that has an Net Present Value of at least $2 billion and up to $ 8 billion that has only 100 million shares out and it traded down to 46 cents today on very good news with the release of a Preliminary Economic Assessment (PEA).
This Co. has new, patented, environmentally safe, proprietary technology that gives it the best pricing for pure product in the world by a wide margin over the likes of Dupont...with a resource product that is in growing demand for both present needs and growing, special metallurgy demands...and the price of which has gone from $2500/ton to today's $3700/ton and expected to reach up to $6000/ton in 4 years. Its cost of production in well under $600/ton giving it a margin of about $3000/ton today. At capacity this Co. will produce 195,000 tons/day! It has over twenty five year's of mine life...plus it has bonus property, a high grade, huge iron ore property that it can easily spin off for big bucks (43-101 in place).
It is in miniproduction in Canada already and can upscale production in staged, modular units quickly....easy to finance...form the miniplant to 15000tons/year and up to 195000 tons/year. It was upgraded today to outperform to $28...with a price of $3 within a year ... but if one looks closely the NR was way too conservative and the IRR should be at least %50%. This can easily be verified by looking at the numbers.
In brief, here we have a junior that was rated at $28/share when scalability of production is demonstrated which is now a no brainer.
So, we have at least a 4 to 6 bagger near term to say $3 plus. But just on the back of a napkin this Co. is worth $440/share for resources in the ground...and with a sector P/E of 15...make that $1900/share. Outlandish numbers indeed!
Okay, okay...$3/share then. It's trading at 46 cents!!!!
So, me fellow ECU inductees to future AUM Hall of Fame, cry not. We can see that there are other long term shareholders out there today that are, to say the least....pissed.
Craziest markets that ever existed!