I published a research report – My Best Silver Stock Idea – on October 28. As you can see from this relative performance graph, this stock has outperformed the mining stock sector (GDX and GDXJ) (click on graph to enlarge):
The stock has outperformed both GDX and GDXJ by a significant amount since October 28. As you can see from the MFI, there has been a lot of money flowing into the stock.
This Company went free cash flow from its silver mine production during the 3rd quarter. It is in the process of ramping up both its mill capacity and overall production level. It makes money on every ounce produced down to $12/oz on silver. Most silver miners are currently, at best, breaking even on production.
In addition to being an emerging silver producer, this Company has significant land holdings adjacent to its existing mine which enable it leverage any new silver discovered off its current fixed asset production base. It has already been permitted to double its mill from its current operating capacity. We should be getting some drilling results on one of the adjacent properties that it is currently exploring. Early indications suggest that this property likely contains a similar amount of silver resource as its existing mine, which is currently measured at 20 million ozs with plenty of room on the property footprint to expand that number.
The Company also has a mine-ready project with a significant amount of gold, copper, silver and titanium situated in Mexico’s “Silver Belt” in the State of Durango.
In my view this stock combines the best attributes of a currently profitable silver producer plus the huge potential upside of an exploration stock. The kicker is that it can fund all of its expansion plans from cash flow. You can access the report here: Huge Upside Silver Miner
We own this stock in the investment fund that I manage and we have been adding to our position on every dip in price.