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XMFSinchiruna (26.55)

Anatomy of A Silver Legend - Part 2: Hecla's Dominance in Idaho's Silver Valley



January 31, 2012 – Comments (19) | RELATED TICKERS: HL , EXK , PPP

I hope you enjoy Part 2 of this ongoing in-depth examination of the long-term investment case for Hecla Mining:

In case you missed Part 1:

19 Comments – Post Your Own

#1) On February 01, 2012 at 10:02 AM, XMFSinchiruna (26.55) wrote:

Have you guys ever visited the Metals and Mining Discussion Boards?

Get a load of these guys: 

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#2) On February 01, 2012 at 12:37 PM, c5700 (74.69) wrote:

Hi Chris.

After scrolling throught that Metals Discussion Board, I just wanted to say something to you. Since reading your recommendation for (then) Gammon Gold last year, it made realize the lack of precious metal holdings in my portfolio. I've been following your blog/articles closely ever since then. Even though I subscribe to SA and HG, I have not been utilizing them much lately. My recent purchases have been in the PM field  ---and all based on the information you have provided.

I'm not sure what those posters on the M&M board were accomplishing. If they don't agree with your analysis, it's pretty simple to just ignore it. Or read it and say something like: thanks, I'll think about it. Or some other nicety. Anyways, there doesn't seem to be much point to engage them in a discussion 

So, in the end, I do want to thank you for your efforts. They are most appreciated.


(FWIW: now long: auq, gpl, slw, hl, ppp, tc, brg, cef)

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#3) On February 01, 2012 at 1:51 PM, XMFSinchiruna (26.55) wrote:

Hi Charles,

Thanks so much the kind words! Knowing that I'm helping my fellow community members to profit from gold and silver goldings right alongside me is the inspiration that drives my efforts on a daily basis.

And after a difficult year like 2011 that can tend to test one's patience in awaiting long-anticipated gains, I join you in expecting solid gains from the holdings you listed above.

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#4) On February 01, 2012 at 2:35 PM, XMFSinchiruna (26.55) wrote:


I'm beginning to tale a little off the table here into this beautiful rally. My cash position was near $0 after the late-2011 slump proved irresistible, and I'm currently using this relative streangth to rebuild that cash position back toward my minimum goal of 10%. If the rally continues unabated, I may seek to get that cash position higher still.

I point this out not because I am concerned that the rally is running out of steam (on that sort of thing I have grown increasingly agnostic), but merely as a reminder of the virtue of shaving positions into relative strength in order to re-deploy into relative weakness. And it's not all one-sided either. I purchased several things today even as I was selling others.

To hear Jim Sinclair talk about the potential ramifications of this looming determination on Greek Debt and the implications for holders of credit default swaps, one is reminded that systemic risk remains like a pirhanna nipping at our wading toes.

Be safe out there.

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#5) On February 01, 2012 at 3:23 PM, SN3165 (< 20) wrote:

I do hope we don't see another correction in the markets but you never know. I can't imagine seeing the depressed explorers/micros valuations drop even further...

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#6) On February 01, 2012 at 5:08 PM, t0bes (< 20) wrote:

What a bizarre reaction from the M&M board. They really need to get out a bit more.

You're certainly appreciated here Chris and I agree things have been going so well recetly it would be wise to trim some holdings and raise a little cash.  But when I look at my holdings I really don't know which to reduce - any suggestions on which have gotten ahead of themselves?


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#7) On February 01, 2012 at 5:36 PM, XMFSinchiruna (26.55) wrote:

Tobes, i can't discuss companies I've just sold, but try to pay some sttention to RSI on the 1-year chart. It's not a secret decoder or anything, but it's definitely worth comparing among potential candidates for those that might be ripest for a little harvesting of cash. The one elevated RSI that I chose to ignore was CDY, because I think there's a significant chance that its trajectory continues uninterrupted (especially if it can hold above $1.50 where it closed today). Certain stocks, for sure, you just can't bring yourself to touch, and for me that's my prime example. In fact, if it dips back down into the $1.30s, I'd be tempted to go sgainst my own cash-raising initiative by pressing that position to make it my top holding overall (it's already clse). 

Everybody has a different situation, but because my commissions are very low, I feel I can justify spreading my harvest across many stocks by shaving very small portions.

And to repeat,  I'm not saying I think the rally is losing steam, but merely that macroeconomic risks remind us that having little to no cash on hand may not be the best situation regardless of he fundamentals within our particular industry/ies of focus.

I also couldn't touch PZG... They've just created too much value! Recent drill results have been phenomenal.

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#8) On February 01, 2012 at 9:19 PM, skypilot2005 (< 20) wrote:


Thanks for making us aware of the Metals and Mining discussion board.

Friendly bunch.

I just may drop a link on them now and then if they are discussing a company with merit.

Of course, I will not reveal that I am your Official Web Link Assistant.  A ribbon I wear with honor.

They may post, “Who was that guy?”


Sky Pilot


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#9) On February 01, 2012 at 9:21 PM, t0bes (< 20) wrote:

Thanks Chris. Good plan.

Of course if you didn't keep unearthing all these great companies and sharing your enthusiasm with us we wouldn't be so spoiled would we?

But I can think of worse problems to have than trying to decide which stock to take profits on 

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#10) On February 02, 2012 at 8:20 AM, skypilot2005 (< 20) wrote:

Brigus FYI

Infill Drilling at 147 Zone Returns Excellent Gold Assays

Halifax, Nova Scotia;

 February 2, 2012

Sky Pilot

Official Web Link Assistant to Sinch

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#11) On February 02, 2012 at 9:05 AM, XMFSinchiruna (26.55) wrote:

Yup, more sweet hits there. The market can ignore this all it wants. I know where some of my cash is going the next time I sense a market bottom.

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#12) On February 02, 2012 at 9:07 AM, XMFSinchiruna (26.55) wrote:

Royal Gold Reports Record Revenue and Net Income for Second Quarter Fiscal 2012Record royalty revenue totaled $68.8 million, a 22% increase year-over-yearRecord net income rose 28% year-over-year to $23.4 million, or $0.42 per basic shareOperating cash flow totaled $29.3 millionMt. Milligan gold interest increased to 40%Gold and silver interests purchased on Tulsequah Chief projectRaised $268.4 million in January 2012

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#13) On February 02, 2012 at 12:59 PM, goldcountry (< 20) wrote:

I  used to be a regular on the Mining and Metals board, its been in a slow state of deterioration for quite a while but this is a new low. The level of discussion here is way beyond anything they have to offer.

This is my first post here btw but probably not my last. This year is so far shaping up to be one to remember, both in good (if you own precious metals and miners) but also probably some not so good ways. 


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#14) On February 02, 2012 at 1:06 PM, goldcountry (< 20) wrote:

One more thing. For those who hold Jim Sinclair in high regard you might want to take a look at his company - Tanzanian Royalty Exploration Corp. (TRX). Here is a nice interview by one of Sinclair's advisors David Duval about what they are up to currently;

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#15) On February 02, 2012 at 2:04 PM, XMFSinchiruna (26.55) wrote:

Goldcountry, how are you? I know we've been in touch before, and I'm so pleased to see you here.

Thanks for the post on TRX. I do hold Jim in the highest regard, and he has been a mentor to me just as he's been for so many of us. I don't presently own shares of TRX, but boy did I enjoy a nice pop late last year when that hedge fund liquidation sent the shares plummeting. Some Sinclair-bashing guy that's been pestering me with nasty e-mails for years write to gloat about the stock's demise, which alerted me to the selloff. I bought a chunk, and then promptly locked in a handsome gain.

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#16) On February 02, 2012 at 2:13 PM, XMFSinchiruna (26.55) wrote:


As the only Fool I know of presently straddling both groups, you could play an important role in facilitating the diplomatic mission I am launching for tomorrow. Any chance you'll be around during the day tomorrow? If so, please look for my thread in the Mining and Metals board and lend support to an enjoyable and mutually respectful dialogue as you are able.

Please read about the diplomatic mission I am organizing here:

Hope to see you there on the boards tomorrow.

Thanks also for stopping by here at the CAPS blogs, and please know that you are among friends and fellow Fools!

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#17) On February 02, 2012 at 3:22 PM, goldcountry (< 20) wrote:

Hi Sinch, Yes I check in there every couple of days or so anyway so I will post my 2 cents worth though I'm not sure the reception is likely to be too friendly, but we will see.

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#18) On February 02, 2012 at 4:29 PM, XMFSinchiruna (26.55) wrote:


Thanks so much for the show of support. All we can do is try. :)

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#19) On February 05, 2012 at 5:34 PM, goldcountry (< 20) wrote:

Congrats, the delegation seems to have been something of a success. With my time currently severley limited I find the information/noise ratio much better here though. Just do to lack of time and energy I am pretty much reduced to lurker status for the time being.

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