Silver Dragon Resources: (SDRG.OB) Cool Name....Bad Stock
Silver Dragon Resources is a Silver Mining Company with 7 exploration properties in China and 1 in Mexico. Their logo including the up coming Silver Coin Commemorative is fun to look at. But, is the stock worth investing in since it's May 27th press release revealing 23 Ag-Pb-Zn mineralized bodies at the Liangdi Silver Project?
It's now JUNE again and this stock is trading at .19 a share with a 52 week low of .13 a share. Last JUNE it was $1.72 a share.
The problem is that this company isn't making any profits at all.
Granted, Silver prices have climbed steadily over the past 5+ years. BUT SO WHAT!!!
The only thing you need to pay attention to determine if SDRG is a good stock for your money is 2 things:
1) Are you knowledgeable about how mining companies can fail? (if so, what are SDRG's chances?)
2) Is there ANY catalyst here for investing in SDRG? (What exactly is the latest Press Release even mean?)
1: I'm not knowledgeable with Mining Companies at all. But, with no profits the company is just sending itself into debt, after debt, after debt... Loan after Loan in hopes it can finally find and put some Silver to Market in China and become a profiting company.
It looks to me that you got a 99.99% chance that any money you put into SDRG you can kiss goodbye.
2: The *big* *fantastic* discovery only moved its share price 4 cents! Speculators aren't expecting profits to come out of this company for a VERY VERY VERY long time. So why jump in now?
Besides.. What was the discovery? 23 Ag-Pb-Zn mineralized bodies at the Liangdi Silver Project?
In lamens terms, Silver Dragon Resources is bragging about Polymettalic Minerals:
(Quote is from www.dictionary.com):
"Primarily used in chemistry or mining, polymetal or polymetallic refers to a substance comprised of a combination of different metals. When the substance contains only two metals the term bimetal (bimetallic) is sometimes preferred (not to be confused with bimetallism, which refers to a type of monetary system).
A polymetallic ore (or polymetal ore) is an ore
that is the source of more than one metal suitable for recovery. A mine
containing polymetallic ore is a polymetallic mine. "
In Short. SDRG found unknown metal mineral bodies. Yippe. They haven't the slightest clue what they dug out of their mining exploration. 60 meters in and as of yet nothing to report! No Silver! No Gold! Nothing marketable.