Undervalued Miners

[Ancona]

I have been reading my economics and doomer blogs, and am following a particular company; Silver Wheaton.

It is being said that their stock value is actually LESS than the amount of CASH they are sitting on. Never mind the equipment, land, active mines or buildings......just the cash. If ever there appeared to be a great deal, this would be it.

Although I would have to worry about the shorts coming in and banging it into the ground. These guys have been responsible for the failure of more than one viable company.

[chux03]

There's lots of newsletter writers/publishers that follow the impressive SLW. The two that I subscribe to BOTH list SLW as a LONG TIME acquisitions/core holdings that's currently bargain priced. I also always enjoyed that first sentence at their home page on their website www.silverwheaton.com that reads:

Silver Wheaton is the largest public mining company with 100% of its operating revenue from silver production.

Of course the next sentence continues the impressive wording:

Silver Wheaton expects, based upon its current contracts, to have silver sales of between 13 million and 15 million ounces in 2008, increasing to 19 million ounces in 2009 and 25 million ounces in 2010, without any capital expenditures being required to generate that growth.

And I guess that about says it all....They are a GREAT proxy for silver bullion, when silver goes up so too does SLW. I'm glad to own some shares. There's none larger or few better.

[jtownes]

I think thi statement applies to a lot of resource companies including silver, According to Wellington West Capital Markets, “Gold equities are underpriced by more than 35%.” (See here (http://seekingalpha.com/article/122891-gold-equities-look-underpriced-wellington-west)) Why? 1. “Rising input costs.” 2. “The application of higher discount rates due to the tight credit conditions.” 3. “The introduction of more gold ETF products that saw a portion of the investment dollars flow away from gold equities.” Via Stock Research Portal (http://www.stockresearchportal.com/)

[silverheartbone]

I am becoming progressively less enamored by US mining interests. The current leadership would have no problem nationalizing these properties in a crises. Therefore, as the likelyhood of greater profits improves, for the reasons stated above, the likelyhood of greater government "involvement" grows more likely. - yellowhoard (http://seekingalpha.com/user/343824/comment/415774)

I would not bet against the Feds stealing the mines.

[Irishfan1]

I trust the Canadians more than the U.S., thats another reason to own SLW its in Canada. I own more of SLW than any other stock. Yamana Gold is a close 2nd (AUY) I highly recommend them, they have the lowest per oz cost of getting gold outta the ground than any other miner, they got a lotta silver and copper too.

[chux03]

"I own more of SLW than any other stock."

Likewise, same here. SLW is looking for an increase in silver sales which should bump up earnings as well. The future looks BRIGHT for SLW.
The other (soon to be) silver producer in my portfolio that also is showing a charmed future is Alexco, who by the way, is the company that SLW bought 25% of their silver production stream for $50M. Those funds will get AXU's Bellekeno mine project into production. I'm sorry I'm short on details but here's the link to their website for more information on this GREAT silver producing company (that also happens to have an environmental services company that's equally successful).

www.alexcoresource.com/s/Home.asp

[jtownes]

Royalty firms seem to be getting a lot of attention as, Olivier Tischendorf touts metal royalty companies on SeekingAlpha.com. (http://seekingalpha.com/article/124556-five-metal-royalty-companies-to-consider) Primary attraction: “Royalty companies are not exposed to the high capital costs in the mining business and still offer full exposure to rising gold, silver or base metal prices.” Royalty companies: Silver Wheaton, Silverstone Resource, International Royalty and especially Royal Gold and Franco-Nevada. Via Stock Research Portal (http://www.stockresearchportal.com/)