Speedy's Top 10 Mining Picks for 2013 # 5-8
6) U.S Silver and Gold ~ This new company created between U.S. Silver & Rx. Gold & Silver. Thusfar, the new company has created 2nd largest US. Silver producer. Trading for approx a 160m market cap with production for 2012 of 2.5m oz. Ag & 22,500-25,000 Au. As mining mill optimizations are undertaken plus the Coeur mine coming online in early 2013 will propel production to 5m oz. Ag and 30,000 Au with declining cash costs. This production profile warrants upwards of a 400m+ market cap thus I;m expecting a re-valuation of this company, possibly doubling just in 2013, especially if we average $40 silver and $1,900 gold.
5) Aurcana ~ Since I was able tp put out my 2013 picks ahead of Sinch, looks as if I can pick Aurcana as one of my top picks this year. After seeing record production from la negra. it was very encouraging to see this even though the real gem lies in Shafter( 3.5m oz. Ag in 2013), which should reach design capacity by mid +/- 2013, significantly adding to production. I;m expecting 5m oz. +/- as La Negra (1.5m oz. in 2013) will be operating at its new design capacity (3,000 tpd) as well as meaningful contribution from Shafter. I have voiced my dislike of Aurcana;s capital structure (over 500m shares out. for a relatively small company) but I do think it will start picking up momentum and should silver average $32.50/oz, my NAV, DCF,H-Model, etc show it a likely target for Aurcana is $1.85-$2/share, however, we could see it explode to $2.25 or so.
4) Silvercorp ~ Silvercorp will undergo a gigantic production increase y/y (its fiscal yr ends mid year), as AgEq production will jump from apprximately 5.7m oz.;s to 9.2m in FY 2014 courtesy of the GC mine coming online and a huge increase of production seen from the Ying Mining District, The GC mine (which Rui Feng think will become bigger than the Ying mine over time). Additionally, it should return to boasting a negative cash cost net of byproducts as base metal prices have rebounded following last quarter. I like it so much under $6/share precisely because of all the negative sentinment surrounding the company.
3) Atna Resources ~ This small gold junior (which I picked as a top pick 2 years back when it exploded from 60c to over a $1), should do just the same in 2013 as production jumps from just 38,000 oz.;s to a whopping 125,000 oz.'s +/- 10,000 via its extremely high grade Nevada mine, Pinson (boasting an average grade of 11.4 g/t). Following in 2014, Atna will produce close to 160,000 as Pinson is fully ramped up and the Nevada Mine Reward comes on stream.