Tag Archives: silver mining stocks

The Short-Sell Report On First Majestic Silver Is Fraudulent

In my last issue of the Mining Stock Journal (Sept 15), I featured trading opportunities in three large-cap mining stocks plus I explained why a recent buy recommendation from the National Inflation Association was a nothing more than a pump-n-dump operation.

Although the sell-off in AG stock was attributed to a highly negative report issued by Kerrisdale Capital, the truth is that the recent price correction in AG is a function of AG revising its full-year production outlook lower plus the correction in the overall sector. In fact, the short report issued by Kerrisdale – headed by a sleazy financial operator who was recently busted for a DUI and cocaine possession – was nothing more than a fraud-filled hit-job:

I noticed several problematic errors in his analysis. In fact, Adrange’s thesis and conclusion is an analytic disaster. I don’t know whether or not this guy has any experience with mining stock analysis but it was clear to me that he does not know what he is doing in this sector. Perhaps the most glaring error – in fact I have to wonder if it was intentional for the purposes of supporting his thesis – is that in valuing AG vs. other miners based on resources, he only uses measured & indicated resources. This is outright incompetence or fraud, or both.Mining Stock Journal, September 15, 2016.

I further lay out the case for why the current sell-off in AG stock is a great buying opportunity plus I recommend two other large-cap stocks (note: the Mining Stock Journal primarily focuses on relatively unknown junior exploration companies).

The NIA recently was promoting a junior mining stock with which I was not familiar. I did some research on it and had discovered that the NIA had been promoting it. The basis for the “strong buy” was entirely incorrect data presented. In fact, the assertions and data presented were either a product of unintentional incompetence or intentional misrepresentation.  I explain in my analysis:

The bottom line with the NIA report is that is almost entirely inaccurate and full of hyperbole. It’s clearly a report that was designed to facilitate a pump and dump operation. If you own this stock, take advantage of the recent move in the stock triggered by the NIA, and fueled by stock-trading chat board childishness, and unload your shares. I don’t want to assert that this company is a sham, but if it has any intrinsic value, it’s far below 10 cents/share.

In the next issue of MSJ, I’ll be featuring a little-known silver exploration company trading well below $1 that, in the words of the CEO, will eventually be $10-15 stock (Canadian $’s). After reviewing the story with CEO yesterday, I’m amazed that this stock receives almost no attention, even on trading chat-boards. You can access MSJ with this link, which includes receiving all the back-issues (via email):  Mining Stock Journal Subscription.

Silver Will Be The Gift That Keeps On Giving In 2015

Many of us in the precious metals community have been conjecturing, based on silver’s particular buoyancy since Halloween, that the bullion banks who are massively short paper silver might have a bigger problem with delivering physical silver right now than they do with gold.

There’s been plenty of “tracks in the snow,” like the huge volume of silver that moves in and out of the Comex silver vaults on a weekly basis, the unanticipated record amount of silver imported by India in 2014 and the stunning withdrawal of roughly 90% of the silver stock on the Shanghai Futures Exchange since 2013.

It’s almost as if the bona fide physical silver accumulators are removing as much physical silver possible while the NY/London bullion banks play “the shell game” with silver baseballing in and out of the Comex and the SLV Trust.  Even HSBC, surprisingly, issued a report forecasting an 11 million ounce silver supply deficit in 2015.  If a bullion bank of HSBC’s stature is admitting to a deficit, the real deficit will likely be more like 110 million ounces…

I wrote an article recently for Seeking Alpha in which I defended my view that silver would be the best performing asset in 2015:   Silver/Seeking Alpha.

The graph below shows silver’s performance since Halloween (click to enlarge):

Silver

The black line shows that silver started to go parabolic until the bullion banks “stunted” the move on the day that the Government released the infamously phony non-farm payroll report. I have argued that they did us favor by slamming silver because parabolic moves are the “death” of a bull market. I also suggested that the silver would have healthy pullback and begin to head higher again. The blue line shows a more “healthy-looking” bull market trend developing.

This week and last week the bullion banks worked overtime everyday after the Comex paper gold/silver market opened.   And every time silver was smacked close $16, it popped right back up, typically on little or no possible news triggers.  Today was another example of this.

The point here is that silver should bought on every manipulated smack.  If you want to accumulate a long term trading position, buy every hit and sell 1/2 your position on the bounce.  But reload a little more than you sold on the next hit.

If you want a silver mining stock play that will be a home run on the next big bull run in the metals, I would suggest this junior explorer/emerging producer for which I’ve written a detailed research report:   Emerging Silver Producer/Free Cash Flow Positive.

This Company started producing silver last year and is free cash flow positive before exploration costs.  While the existing mine deposit has a lot silver, the Company controls several parcels of land near its existing operation on which the Company believe will contain, in aggregate, a lot more silver than at its existing mine deposit.  In fact, the Company recently announced a new discovery on of these properties which contains near-surface gold and silver mineralization and confirms the potential for a low-grade oxide open pit operation from which it will be able to utilize the existing milling operation.

This Company has the potential to be a home run in 2015 if my silver forecast is even half-accurate.

Gold/Silver Spike Up – This Stock Just Got A Lot More Valuable

Gold and silver took off like a rocket ship around 10:00 a.m. EST.  In fact, silver is now a dollar higher than its low for the day.  I could not find any discernible news that would have triggered the move.   The euro and the yen both popped up vs. the dollar.  Again, on no specifically identifiable news or event.  Click to enlarge:

Untitled

Of course, since the metals have been taken down systematically via highly determined Fed/Wall Street/U.S. Treasury intervention – in defiance of the fundamentals that overwhelmingly support much higher prices – a move like this on no news is very bullish news.

On a related note:   The silver mining company I have most recently feature in my research reports section has become much more valuable today.  You can access it here:   Highly Undervalued Silver Producer.

This Company makes money on its silver production down to $12/oz.  It is now free cash flow positive – yes, free cash flow.  It has a separate mine-ready property with an extraordinarily valuable industrial metal deposit, in addition to a large silver/copper/gold deposit.  This stock has outperformed the sector in the latest sell-off and it offers the “de-risked” benefits of a producer AND the huge upside of a junior.  The latter point because it owns a lot of property that can be explored adjacent to both its current operating mine and its mine-ready deposit.

PayPalLogo

October Silver Eagle Sales Set A Monthly Record

1.4 million silver eagles were bought by investors in the last two days of October, setting a new one-month sales record (real analysts do not count January 2013’s 7+ million tally because the Mint suspended sales in early December 2012, effectively pushing December’s demand into January).   5,790,000 silver eagles were snapped up (LINK).  This was 88% more than October 2013.  38% more gold eagles were sold in October than in October 2013.

Contrary to the false narrative being spread by the financial media, the manipulated sell-off in the precious metals using fiat paper futures is triggering record investment demand for physical gold and silver.   In chatting with some coin dealers around Denver this past week, they all said that there were having trouble keeping silver eagles in stock.

While there’s no way to predict how much longer the Fed and its agent banks can keep pressure on this sector by bombarding the market with paper gold and silver, the demand for physical metal is intensifying here and in Asia.  Gold is being withdrawn from the Shanghai Gold Exchange at a torrid pace and recall that 90% of the physical silver has been removed this year from the Shanghai futures exchange (LINK).

With the above ground physical supply of silver disappearing from sight, at some point investors will come to realize that silver in the ground is a lot more valuable than it is being valued in the stock market currently.   I have written a new research report on a silver explorer/producer that I believe is currently undervalued even with the price of silver at $17.  Furthermore, it is significantly undervalued relative to the amount of silver it will likely uncover on the properties it already owns.  You can access this report HERE or here:

PayPalLogo

The Company has been ramping up its mill capacity and production during Q4.  In my conversations with management, it is clear that they are working to exceed current production and sales guidance for Q4.   They have also been drilling on a property adjacent to their existing mine (management thinks it could be a “twin” of the current property) and should be releasing results sometime in November.  If the results are good, which I expect, and if silver starts to recover, the stock will spike.

This is a “de-risked” silver producer which went free cash flow positive during its 3rd quarter, will ramp up its production significantly next year and has one of the lowest cost per ounce cost structures in the world for a silver producer.  It makes money down to $12/oz. silver!  We added to our position in the fund during the last two days.