McEwen Mining Inc

Formerly - Minera Andes Inc

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Message: Evaluation of Minera Andes

Evaluation of Minera Andes

posted on Jul 08, 2009 02:00PM


Why Minera Andes Should Trade ABOVE 4.00 per Share Today


If you examine today's release of the 43-101 (around market close), it will really open your eyes.

Take the current gold and silver prices, then multiply the measured/inferred ounces, then divide by two (MA's share of SJ), and before deducting costs of extraction, the total value of gold/silver ounces (Minera's share) happens to be approximately 900 million dollars.

Divide 900 million revenue by MA aggregate shares, and on a straight revenue basis alone, without affording the stock a premium PE ratio, the stock should be trading TODAY for a minimum of 4.00 a share -- and that is solely on the basis of gold/silver at San Jose, it does not factor in the huge copper value at Los Azules.

No small wonder that Hochschild went to war with Minera over the San Jose JV, and explains why Robert put up his own money to secure a controlling interest in MA, since it is quite apparent that MA is radically undervalued. In fact, the undervaluation is one of the most shocking in the precious metals sector - and when the light bulb finally turns on with the funds and retail investors, well, it's going to be "to the moon, Alice, to the moon."

Essentially, based on 43-101 figures, you are buying stock today that stands to jump at least FIVE times (on gold/silver values alone) once the market finally catches up with the figures behind the ounces. It is a glaring example of the inefficiency of the market in placing a proper value on a corporation and a good example of why purchasing stock on the OTC can lead ultimately to large fortunes.

The copper is the icing on the cake and would not be surprised to see some major copper miner come along and try to purchase the entire company for some lowball figure (1.50-2.00). If that happens, hopefully, Robert will do his best to rebuke such a lowball and get the kind of value the company deserves.

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