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@Excelsior@EpsteinResearch - always glad to share ideas. So any thoughts on what is next for our friends at $NIM$HUSIF Nicola Mining?
They have a good thing going selling the #Copper ore at Thule and doing more exploration there, as well as the incoming credits from their #Gold & #Silver Tolling at Merritt Mill. When do you think they'll monetize their #Sand & #Gravel JV ? They said that it would bring in an additional $50-70K per year, which isn't much, but I just like that they are monetizing everything they can.
For me the prize is still the Treasure Mountain #Silver mine, and I was hoping we'd hear some kind of update on if they can funnel the Copper, Gold/Silver Tolling, and Gravel revenues towards further development and to get that mine going again. I believe they'll need a Silver price in the mid $20's to make it work, but it represents a huge value driver down the road in my estimation.
Hoping to get an update soon from Nicola, but just curious what you think about the prospects of Treasure Mountain coming back on line in 2017 or 2018 (Ag prices dependent)?
@Excelsior@zadman - great point that the market may perceive they are abandoning the old projects (I don't believe that is the case based on the prior work and great drill results they've been hitting at both properties).
I agree that while the metals have been getting pummeled, along with the stocks, that this transaction was announced at a particularly rough time in the metals space. It may have been better to wait until first quarter 2017 for this transaction. However, it may be precisely because metals have pulled back so much that Tahoe was willing to sell this prior producing mine. It was likely "non-core" to them, and they still get exposure to the project through the 3% NSR.
* @motorolja - I think you nailed it that with most buying having dried up in the miners and with the sell order placed at market, it just went down the chain causing the 8% drop. It very well could have been an investor that wanted to liquidate their position for a tax loss on the news.
Personally, I'm interested to see why they bought the mine, how they plan to approach getting exploration and production going, and how it may fund developing and restarting the other 2 mines at Langis. It will definitely we one to watch.
* @dano - I agree that not all #Silver miners are created equal, but the point I was making was that companies like $ASM Avino and $USA Americas Silver are successful turn-around stories in the space, and both have multiple mines in #production, so it just surprised me that Brent had no idea who they were. As you say, he has his universe of 10-20 stocks he's focused on, and I have all the respect in the world for he and Joe and their looking for fatal flaws process. My point was that when they say there aren't many economical projects out there, and they don't even know some of the multi-mine producers, it is possible they are missing a number of stories. Nobody can follow them all, but there aren't that many Jr #Silver#producers to keep track of really.
I'm not saying either one is a $FRES.L Fresnillo or $TAHO Tahoe or $SSRI Silver Standard, but they sure kicked their butts this year in pricing performance.
I'm a short duration trader, and I was loading up on the smaller Jrs like $USA , $ASM , $GPL , $AXU , $IPT , $BBB , $NIM , and $AUN in Dec of 2015 - Feb of 2016 and trimmed back most of those positions in the summer. Their performance dwarfed the "Tier 1" assets with more economical projects this year exactly because they weren't as economical, and became more economical.
I prefer spotting interesting valuations in the #BestOfTheWorst rather than chasing the #BestOfTheBest with the herd. Companies that are teetering on not quite profitable, have the highest percentage impact rise in revenues and margins during an increasing metals price environment (like when #Silver went up over $20 and #Lead and #Zinc prices increased).
That is why some of the "sub-par" miners that many won't touch like $IPT$EXN$USA$AXU etc... shot up so suddenly and outperformed so many "safe" companies. If investors want a "safe" hold, then they should buy the ETF #SIL or $SILJ. Outperformance of the ETFs doesn't come without being able to stomach much more risk, and without positioning in companies left for dead, BEFORE it is obvious that they are turning around the ship. I do agree with you that they often need to be traded versus just an old turkey buy an hold approach, and that this is not suitable for some investors strategy or risk tolerance.
Anyone that compares where $ASM or $USA is today to where they were 12-24 months would be blind not to see how much they've turned it around. We were discussing the #TurnAround in Claude in 2013 and 2014 and everyone thought we were nuts. In 2015 suddenly the market got it and re-rated the company and they were taken out. They didn't realize we were #WingNuts :-)
I actually like $FSM$EXK and $PAAS that Craig and Brent discussed as solid #Silver companies, and there is no doubt they are larger and well run companies. However, as a result they are more properly priced, and don't have the value/perception arbitrage going like some of the smaller Jrs do.
All the best to everyone regardless of which investing approach they decide to embark on. Ever Upward!
@Excelsior@EpsteinResearch - I've followed on $AXR$AXU Alexco for years and they have consistently stated that they produce a very "clean" concentrate. CEO Clynt Nauman mentions this in every corporate presentation I've heard him give, and remember that they've already produced from Bellekeno in the past, and have tweaked their processing and recovery rates as the mine has been on care and maintenance. The metallurgy is well understood though.
As for size, it is turning out to be district scale. Bellekeno will be put back into production this year in 2017 and will be fed by the Lucky Queen deposit, and the two that have investors so jazzed - Flame & Moth and the very high grade Bermingham that is a new discovery and has been the focus of the exploration noted above.
Check out this #PropertyMap to see all the other new and prior targets that are unfolding:
Alexco Resource: Resuming #Production Decision in Q4 2016 for 3m Oz Silver per Year
#Video Interview with President & CEO Clynton Nauman
Alexco Resources Keno Hill YT1080 Yukon Mining Alliance - Published on Oct 28, 2016
Alexco Resource Corp.(TSX: AXR)Clynton Nauman, President & CEO
Precious Metals Summit – Nov. 2, 2016 (VIDEO – Corporate Slide Presentation)
http://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2016/11/02/alexco-resource-corp/play/stream/20872$IPT$ISVLF Impact Silver and $EXN$EXLLF Excellon both have very high grade deposits rich in #Silver#Zinc and #Lead, and again they are in production at present and are known and understood. They are not huge deposits at this time, but they are continually growing the resource base and they are higher grade which helps the economics. However both properties show huge exploration upside.
Here is the Corporate presentation for Excellon showing how endowed their resources are:
As the team at Excellon continues to make progress on the Dewatering of the mine, it is making a huge impact on their #AISC and thus margins and economics. It is perfectly timed that they are making real progress in their mine right as we are entering the presumed next bull cycle in metals. In addition, they just finalized a resolution with local communities that wraps up a period of uncertainty, and things are moving forward again.
$IPT Impact Silver is still really undervalued by the marketplace as they have 2 processing centers (Guadalupe w/ 3 mines supporting it, and Capire is ramping up with 1 mine) and they've been producers for about a decade.
What I find intriguing beyond just their current mines and production, is the fact that they have 4,500 prior old workings and artisinal deposits all over their property near surface and 75 prior old world and new world processing centers peppered all over their land package. They've only explored a very tiny portion of this Silver district. This is an older but very interesting look at all these old #processing centers from 1890 to present that to me represent plenty of #Exploration upside beyond their current mines and deposits in production:
Impact Silver Corporate Presentation for easy reference on their current operations:
As for $AUN$AUNFF Aurcana - they had 2 mines in the last cycle (Mexico & TX), but the prior management team made bad decisions and the low metals prices sunk the ship; they crashed, restructured their balance sheet and emerged with their Texas Shafter mine. I waited for them to come out of that restructuring to see what would happen (similar how Huldra Silver just had it all timed out wrong, before crashing/restructuring and emerging as $NIM$HUSIF Nicola Mining today).
From 2008-2013 they spent a fortune developing the mine, infrastructure is great, and the processing centers are in place and most of the permits are completed. Previously they were mining without defined resources, but over the last few years Aurcana worked on their property and just came out with an official PEA this last Summer.
Here were the basics:
• Post Tax NPV $18 million (40.9% IRR)
• No Taxes will be paid due to previous losses
• $13.2 million pre-production capital (includes $1.1 contingency)
• Pre-production development – less than a year
• Mine production from current resources - over 6 years
• Net average post-tax annual operating capital $5.5 million
• Average annual silver production 1.5 million oz for 6 years
• Average silver recovery 81.73%
• Payback approximately 1.7 years
Aurcana Corporate Presenation:
@Excelsior@AldenTyrell - I'm a big fan of $NIM Nicola and have enjoyed the recent move up, but it didn't seem like anyone other than yourself and @EpsteinResearch really follow the company the company on here. That's fine, it won't stay overlooked for much longer. :-)
@Excelsior$NIM$HUSIF Nicola Mining Resamples Historic Craigmont Drill Hole S-100 Intersecting 0.54% #Copper Over 116.7 Metres
Jan 23, 2017 #Drillplays#Exploration
“This hole was drilled into the Embayment target; a target that was drill tested by Nicola Mining in their 2016 drill program with hole THU-002. The Company’s news release dated September 7, 2016 includes one Embayment Zone hole, THU-002 that intersected 1.11% Cu over 85.92m. Hole S-100 was collared approximately 65 metres southeast of THU-002 and drilled a total of 590.70 metres (1938.0 feet).
Nicola Mining sampled an additional 64.49 metres (228 feet) of altered and weakly mineralized core from where original sampling stopped at 421.23 metres (1382 feet). The results of the historic sampling of S-100 include sections of 0.92% Cu over 61.9 metres within a section of 116.7 metres grading 0.54%….”
@ExcelsiorAs for Inca One - I have a small position in it that I've been adding to lately with profits from other trades = #ProfitDumpster.
Personally, I'm not a huge fan of #TollMining, but they are processing ore for revenues (which is more than I can say for all the #developers and #explorers that are more #MoneyPits than businesses in the majority of cases). In general, I like the actual Jr #producers over the #tolling companies.
Having said that, I've done quite well with $NIM$HUSIF Nicola Mining on their tolling, #copper ore off-take agreement & exploration, and sitting on an idled #Silver mine.
I also have a few shares in $MNY$SAIDF Montan Mining for a little exposure to their #Gold toll mining. It will be interested to see what happens now that they have done their review of projects and acquisitions and appear to have things moving forward in a positive way.
$IO$INCAF Inca One is just so depressed in price, and their promotional pumps have dissolved, that it looked like a good entry point over the last week or two. I've actually followed the progress of Inca One for years, and don't give a hoot what they do or don't do for promotion, as I'm more interested in the fact they'll be processing ore in #Peru and have a nice little niche' market. If anyone believes that #Gold may be going up in price towards the end of 2017, 2018, 2019, 2020.... then they'll have nice increasing margins to work with. Ore in - gold out.
I don't really consider what upset newsletter writers say when I make investment decisions anyway, so I mostly tune them out. I haven't seen their reviews yet, but it is rare that they cover the positives on the projects, and mostly harp on what they feel are red flags....but then just camp out there.... like those are the only things to consider. Everybody has an opinion, and that is fine....to each their own.
@ExcelsiorThat's the idea with Tolling. $NIM$HUSIF Huldra has been processing at a profit and their stock has started to move on that and the Copper off-take agreement with $TECK. I believe $MNY$SAIDF will be profitable based on their projections, but they haven't really started yet. As for $IO$INCAF Inca One here is their most recent press release about them finalizing their "ramp up" phase.
Inca One Gold Corp.’S Final Ramp Up-Phase Achieves Highest Production Numbers To Date
January 23, 2017
"The Company processed 2,885 tonnes of gold bearing material as compared to the previous nine-month average of 875 tonnes per month (from January 1 through September 30, 2016), representing an increase of 230%. When compared to the prior month of November, where Chala One processed 2,217 tonnes of material, the increase represents a 30% change month over month.
"Notably, the daily average throughput in December climbed up to 93 tonnes per day (“TPD”), a significant increase over the previous nine-month average of 29 TPD and a substantial increase over the prior month of November’s average throughput of 74 TPD. Despite some quickly resolved maintenance and wear and tear issues, which forced a temporary slowdown in production activities in early December, throughput recovered and Chala One successfully processed 16 days in excess of 100 TPD with daily throughput reaching an all-time high of 130 TPD achieved on December 31, 2016."
"The Company’s ramp-up plan is now successfully complete and our Chala One plant finished December on a strong note,” commented Inca One President and CEO Edward Kelly. ***“We will turn our focus to achieving healthy positive cash flow from this point forward.”***
"Gold production during December also grew substantially as Chala One produced 1,330 ounces of gold, as compared to the prior nine-month average of 417 ounces per month, an increase of 219%. Compared to the prior month of November in which month the Company produced 1,073 ounces gold, the increase in gold production was 24% month over month.
@ExcelsiorNicola Mining, 3 Junior Miners in 1
by @EpsteinResearch on March 9, 2017 #Silver#Copper#Gold#TollMilling$NIM$HUSIF Nicola Mining Inc. has three potentially company-making assets, two nearing steady-state cash flow. The third, Treasure Mountain, offers both a shovel ready, up to C$9 million profit opportunity (see below) plus, longer term, a possible company-making silver-lead-zinc mine on a past-producing mine site. Regarding the first two assets, there’s the valuable, (virtually impossible to replicate in BC) gold-silver Merritt Mill and processing facility centrally located near Merritt, BC, and an “Exploration & Material Purchase Agreement” with Teck Resources $TECK$TCK to monetize waste rock from Nicola’s 100% owned Thule Copper project (another potential company-maker)….”
* Nicola Mining (TSXV: NIM) Video Roadshow
Posted By Canadian Stock Trader on March 8, 2017 – SmallCapPower #Videohttps://www.youtube.com/watch?v=OOsaUIlcJ4I++
@EpsteinResearchI met with CEO Peter Espig for over an hour at PDAC. Very good update. $NIM Espig made an open market purchase of shares earlier in March: SEDI:NIM. It was his first purchase since 4th qtr 2016. He paid 24.0c, stock is currently at 23.0c. I published an article on $NIM yesterday (and also bought shares at 22.5c).
@EpsteinResearch$NIM I bought 40,000 shares this week. Doesn't it seem like there's good support at 19.5c or 20.0c? I have great respect for CEO Peter Espig, he's the real deal. A key point that he hasn't stressed but I will is that the Merritt Mill can be readily upgraded to 500 tpd from current 200 tpd. That's huge, especially if gold/silver prices move higher this year. Look at the pictures of that Mill, really impressive. Nicola and predecessor company Huldra Silver have invested close to $50 million into the Mill, the tailings facility, the land the Mill sits on, upgrades & other company assets, incl. $10 million on Treasure Mountain. The market cap is $32 million, and they have a $10 million cash flow, shovel ready project at Treasure Mountain that they could undertake over about a nine-month period. Just waiting for higher metals prices.
@EpsteinResearch@awgiddens, $NIM#copper#gold#silver if you put emphasis on the CEO acquiring shares in the open market, you should disclose the price paid. He paid 24c. What % of the CEOs at the hundreds of juniors mentioned herein day in and day out have bought ANY shares at all in open market lately? 5%? 10%?