+ Watch AUNFF
on My Watchlist
Fast growing silver producer - watch out once in full production (very soon) and silver pops
Aurcana is opening up Shafter mine and floatation mill in Texas, and will produce from a high grade ore deposit. This is their second operation. This company will be producing over 6 M Oz annually, and at a lower quartile cost. If the POS holds up, this should be in for a run.
Silver demand is rising. price is still low vs. gold.
It's the Greatest Growth Story in Silver Today:http://www.fool.com/investing/general/2012/02/06/the-greatest-growth-story-in-silver-today.aspxhttp://www.fool.com/investing/general/2012/02/06/the-greatest-growth-story-in-silver-today-part-2.aspxCompany also gained a nice pop recently by consolidating ownership of the La Negra mine in advance of that operation's own aggressive growth trajectoryhttp://www.aurcana.com/s/NewsReleases.asp?ReportID=508811I was extremely impressed by CEO Lenic Rodriguez when I interviewed him in Vancouver, and I anticipate greatness from the Shafter mine.
Since rec. I believe in the turnaround story of this company.
I love what I'm hearing about this company
Buying shares of Aurcana Corporation AUNFF @ $0.78 IRL Aurcana is a great turnaround story. After almost going bankrupt and changing management, the company is now profitable and recently paid to get outs of its Silver Wheaton contract, regaining 100% of its rights to its metals. In additional to the Le Negra mines which will produce 2 million ounces of silver in 2011. AUNFF owns 100% of the Shafter mines in Texas, which when finished in mid 2012 will quadruple the company’s total silver production. The Shafter mine is part of CDB built which is the backbone to the Mexican silver belt. Geologists say the similarities between the Shafter mine and other large silver deposits in Mexico are significant and exciting. If management delivers on production estimates for the Shafter mine it will become the 14th largest silver mine in the world.
One of my top 5 holdings in RL
The CEO seems to be a hard headed business man and has surrounded himself with a team of very experienced miners.Getting out from under Silver Wheaton was aabrave intelligent mobve and good for shareholders.Although I'm down about 40%since I bought in March I will not live in fear.In god and silver I trust.
As of the 2010 annual financial report, they paid off their debt to Silver Wheaton, thus claiming 100% of the silver they get from their mine in Mexico, which was being processed at 8.7/ounce. Not that high in today's market, though it could get better. Their Shafter mine in TX is 100% owned by Aurcana AND at 15$/oz, will pay itself off in 1.9 years, approx. Dec 2012. However, with silver prices the way they are, the mine will have paid itself off by the end of 2011. There is nothing but upside potential for these guys!
My thesis is that silver will not remain below $30/oz for long in the coming months, if at all, and that volatility will continue. I would not encourage anyone to invest in silver itself in this environment. However, young primary silver miners are something else completely. As long as the price of silver remains safely above production costs, silver mines have incentive to reopen, and exploration companies are motivated to look for new potential mineable areas.Even if silver does drop under $30 for an extended period of time, the increasing production of many primary silver miners and silver explorers/soon-to-be producers will far outweigh the drop in silver price in terms of earnings. Looking out 12 months and beyond, even in a protracted environment of, say, $20-25 silver, many explorers/young producers will easily mitigate that potential drop in silver price with their growing production, and share prices will follow suit upwards. I'm giving a Fool's thumb up to several silver miners, b/c I believe that silver will trade above $35 later this year, and will rise over time from there. However (full disclosure), I am personally invested only in the following, due in part to their extreme production growth potential (and many of them have quite low production costs, too):Currently Producing:*Silvermex*Alexco*AurcanaNot Yet Producing:*South American Silver*Wildcat Silver*Sabina*Bear CreekAlways do your DD, and don't forget to have fun. Fool on!
I want a massive short squeeze in this for a quick trade.
There is now backwardation (zero contango) in silver for the first time in 20 years which is indeed bullish for physical silver but very bearish for paper etf's such as SLV. Physical silver or silver mines should provide a massive upside in the coming weeks. More info on Harvey Organ's blog.
Overlooked Junior miner that recently bought back their silver stream purchase agreement from $SL. This was a good move as 50% of the silver was being sold to $SLW at 3.90/oz. They also completed an equity funding which will finance the Shafter Silver Mine Project. This will cause the EPS to grow sooner than if production was hedged for several years to $SLW. Could see a big move here.
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