production & exploration

Galena Mine - Coeur d'Alene Mining District - 48 million oz

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Message: Undervalued

I'm not knocking down or bashing USA because I have some. However, Toby Hansen has a free newsletter you can get just by requesting a copy by sending an e-mail to him at tobinator00@yahoo.com I think it's worth looking at the letter, considering the low low price . . . lol! . . . .seriously though, he draws out some good points. Might take a few days to get it as this is the holiday and weekend. I got my copy during the week in the space of a few hours.

In the letter he gives his opinion on a few stocks and USA is one of them, he says the following:

4) U. S. Silver (USA.V, USSIF): US Silver reported disappointing results for Q3 with 558k ounces silver, 1.1 million pounds lead, 296,000 pounds copper. Cash costs rose to $13.40 net of lead and copper byproducts. The low production results were caused by 10 lost days of production in July.

The stock did not perform as well as peers this autumn. Poor operational performance, over promise/under delivering relative to guidance and a heavy number of shares outstanding are likely culprits. Average Q4 silver prices were quite high and there should not be a reoccurrence of lost production. US Silver has to show it can generate strong operating cash flows per their presentation guidance. If Q4 comes out to be another poor quarter, this stock will be dropped from this list. Website: www.us-silver.com

He notes the following on the chart for USA which I can't copy. -- Silver exploded this Autumn yet US Silver barely participated in the sector rally. This stock needs to close over and maintain the C$0.20 level. (20 cent level).

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