The Future Ahead

While not every company featured has been successful, the majority of them have given their shareholders a substantial return on investment. So before 2011 begins, let’s go over what 2010 gave to our readers. Here are a few of our favourite stories this year.

Wow. It was less than a few years ago when the world was on the brink of collapse.

Now just a few short years later, things have completely changed. Precious metals are at all time highs, security regulations are tighter than ever, China’s economy is bigger than ever, and for the first time in the history of the world, the world super power has its first ever African-American President.

This year, we’re finally on the brink of stabilization.

While the housing market and unemployment rates remain cautiously subdued, the capital markets have given us an opportunity to reap what was lost in 2008. From record precious metals prices to climbing oil prices, the capital markets – in particular the juniors – have allowed us to make substantial gains.

Over the past year, we have introduced our readers to a number of junior resource companies. From drill shot potential plays capable of multi baggers to world-renowned management teams, our featured companies all have their unique situation stories worthy of our portfolio.

While not every company featured has been successful, the majority of them have given their shareholders a substantial return on investment. So before 2011 begins, let’s go over what 2010 gave to our readers. Here are a few of our favourite stories this year.

Silvermex Resources Inc.

Silvermex Resources Inc. (TSX-V: SLX) was first introduced to our members at a closing price of $0.32 last year on November 15, 2009.

Since that time, Silvermex has gone from a non-producing junior to a production story with a management team backed by some of the most important and respected silver mining executives in the industry from Hecla Mining and Silver Standard: Executives included former CEO of Hecla Mining Arthur Brown, former VP of Hecla Mining Michael Callahan, Senior Vice President of Silver Standard Resources Inc. Joseph J. Ovsenek, and Vice President Exploration for Silver Standard Resources, Kenneth C. McNaughton.

Shares of Silvermex currently trade at $0.98, but traded as high as $1.04 last week. That’s a potential increase of 225% from our initial coverage price.

United Mining Group

United Mining Group (TSX: UMG) has also made both substantial corporate developments, along with a substantial increase in share price.

When we first introduced United Mining Group, they were trading on the CNSX – a smaller Canadian exchange than the TSX. (see The Secret Battle)

Since that time, they have not only graduated to the TSX, but have almost nearly doubled in share value since the graduation, hitting a high of $1.22 just the other day. (see Critical Milestone)

They currently trade at $1.08.

But that’s not all.

One of the more important factors in making United Mining Group’s Crescent Mine project a success, and perhaps also a blockage in their goals, was the ability to use an adjacent partner’s tailings dam, which the Crescent Mine did not support.

With the help of newly appointed CEO Charles Pitcher, (former President and CEO of Western Canadian Coal) and Graham Clarke, Jr., (former Senior Vice President and General Counsel with Newmont Mining as Independent Director), the issue of a tailings dam is no longer issue.

A few months ago, United Mining Group signed a letter of intent with the New Jersey Mining Company (NJMC) to secure milling capacity for the Company which would not only give them access to a milling capacity of 350 tpd (with some investment), but also give them access to the tailings to use for backfill. (see news release)

With the tailings problem solved and the addition of some very powerful executives, United Mining Group has been aggressive in seeking further resource expansion. They have now completed its claims purchase agreement that increases its contiguous exploration land holdings by approximately 265% at the Company’s Crescent Mine project in Idaho’s prolific Silver Belt – directly between two of the world’s historically biggest silver producing properties, the Sunshine and Bunker Hill mines (see Special Report Edition: Critical Milestone.)

Charles Pitcher told us that two years from now, “(They will) certainly be in production on the first module and well on the way on the second. (They’re) going to be a significant and profitable producer. In three years, I think (they’ll) be looking north of 300 tonnes a day.”

And we believe him.

Charles Pitcher was former CEO and COO of Western Canadian Coal (TSX: WTN).

At the time he became CEO of Western Canadian Coal, shares of the Company were trading at less than $0.50, and as low as $0.30. Since then, Western Canadian Coal’s share price has surpassed $10 before the market crash in 2008. It still has a market cap of over CDN$4.26 billion today after the recent buyout agreement by Walter Energy.

United Mining Group was also able to secure Graham (Chip) Clarke, who has been with Newmont Mining Corporation for 13 years spending 5 years as General Counsel and Senior Vice President. Newmont Mining currently has a market cap of nearly US$30 billion.

It’s no surprise to us that since the addition of both Charles Pitcher and Graham Clarke, the share price of United Mining Group has continued its climb.

Minco Silver (TSX: MSV) (OTC: MISVF)

Minco Silver (TSX: MSV) has made tremendous strides in both corporate developments and share price since our initial coverage at a price of $2.56.

Since our coverage (see Special Report Edition: Brink of Milestone), shares of Minco Silver has continued to surpass new 52-week highs – climbing as high as $7.14 earlier this month. That’s a potential gain of 179%.

A few months ago, Minco Silver received conditional commitment of a project debt facility in the amount of RMB 300 million (approximately $45 million USD) for construction of their Fuwan Silver Project.

The debt facility represents approximately 60% of the total projected capital expenditure of US$73.1 million for the Fuwan Silver Mine construction, as outlined by the Bankable Feasibility Study announced on September 28, 2009 (see news release.)

The next stage for Minco Silver in becoming one of the largest pure silver producers in China is to receive their Environmental Impact Assessment (“EIA”) permit, which has now been advanced to the final stage (see news release.)

Although patience is key in Minco Silver`s developments, shareholders have already been rewarded with substantial gains in the market with shares climbing from lows of $1.55 earlier in the year, to over $7 this month.

Analysts covering Minco Silver remain confident the EIA permit is on its way and many have continued to raise their target prices over this past year, with Haywood Securities and Union Securities continuing to raise their target prices (see Analysts Continue to Raise Target Prices for Minco Silver)

The share price performance of our Special Report Edition companies comes as no surprise as the market for precious metals and the juniors involved have grown dramatically.

The market data continues to give us reason that the world is still on its toes.

The economic state of the world`s most powerful nation remains depressed despite all efforts made thus far. That`s why the US government will continue to spend money and do whatever it can to increase inflation back to reality.

As a result, Goldman Sachs now believes gold may rally to $1,650 an ounce in 12 months due to further quantitative easing in the United States and the prospect for falling long-term interest rates. They expect the Federal Reserve to return to quantitative easing with purchases of U.S. Treasury securities of $1 trillion, which should depress U.S. bond yields – and send gold prices even higher:

“The return to quantitative easing will likely be a strong catalyst to drive gold prices higher, and we expect the gold price rally to continue until U.S. monetary policy begins to tighten.“ – Goldman Sachs

With the future continuing to look bright for the precious metals market, many juniors are still on the verge of a breakout.

What’s in Store for 2011

Finding the right featured company is difficult in an environment where stability remains uncertain. That is why in 2011 we will be looking to introduce junior mining companies associated with strong management and that have active exploration and development programs on top-quality targets/assets over the next 6-12 months.

Given the strength of the sector, we also like some exposure to selective pre-drilling phase exploration names that have quality preliminary geological data supporting upcoming drilling programs. Many of these speculative stories remain under-recognized, but offer above-average speculative appeal in the current market.

We would like to continue our success from 2010 and into 2011. As such, we will continue to select companies based on a wide variety of criteria, including: strong management, upcoming work programs, project potential and leveraged commodities price movement.

Our primary goal in 2011 is to identify companies that offer above-average opportunity based on successful project advancement and development. A focus on companies that not only have proven resources, but still have the potential for new exploration discoveries is ideal because it provides a valuation based on ounces in the ground, but also provides significant upside potential from exploration discoveries and resource upgrades.

The more money being spent on drill programs, the better our chances of making the strong returns we have experienced this year. With the current positive climate of investor tolerance, the money being spent on drill programs are increasing substantially. This trend is likely to continue in 2011 – especially if commodities and resource prices remain high.

2010 was a great year. We’re expecting 2011 to be even better.

So enjoy the holidays while you can because 2011 promises to be a busy and prosperous year.

This will be our last newsletter until the New Year, so have a safe and happy holiday!

We’ll be returning to our regular weekly schedule on January 9, 2011.

Companies mentioned in our Special Reports are paid advertisers and we own, or have owned, both shares and options in each of the mentioned companies. Companies in our Special Report Editions often represent core holdings in our own portfolio. This means we are extremely biased because we invest to make a profit. Investing is risky, especially in juniors. Please do your own due diligence and conduct your own research.*

Until next week,

Ivan Lo
Managing Director, Equedia Weekly
Equedia Network Corporation
www.equedia.com

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Forward-Looking Statements

This Newsletter and report contains certain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from current expectations and projections. Except for statements of historical fact relating to the project, certain information contained herein constitutes “forward-looking statements”. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur.

Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuations in prices & marketplace, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. Circumstances or management’s estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.

 

Disclaimer and Disclosure

Disclaimer and Disclosure Equedia.com & Equedia Network Corporation bears no liability for losses and/or damages arising from the use of this newsletter or any third party content provided herein. Equedia.com is an online financial newsletter owned by Equedia Network Corporation. We are focused on researching small-cap and large-cap public companies. Our past performance does not guarantee future results. Information in this report has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete. This material is not an offer to sell or a solicitation of an offer to buy any securities or commodities.

Equedia.com has been compensated to perform research on specific companies and therefore information should not be construed as unbiased. Each contract varies in duration, services performed and compensation received. Equedia.com is not responsible for any claims made by any of the mentioned companies or third party content providers. Equedia Network Corporation., owner of Equedia.com has been paid six thousand four hundred and thirty Canadian dollars plus gst/hst per month for 7 months which totals forty five thousand dollars plus gst/hst of advertisement coverage on Minco Silver Corporation. The company (Minco Silver Corporation) has paid for this service. Equedia.com has sold our shares of Minco Silver Corporation but may purchase shares without notice. If we do, we intend to sell every share we own for our own profit and may sell shares in Minco Silver Corporation without notice to our subscribers. Equedia Network Corporation has been paid six thousand two hundred and fifty Canadian dollars plus gst per month for 8 months which totals fifty thousand dollars plus GST of advertisement coverage on United Mining Group plus an additional 30,000 options at $0.75CDN. The company (United Mining Group) has paid for this service. We no longer own shares of United Mining Group but may purchase shares without notice. Should we do so, we may sell shares in United Mining Group without notice to our subscribers. We have been compensated CDN$8000 + GST per month for 4 months of online advertisement coverage on Silvermex Resources plus an additional 50,000 options at $0.34CDN and 75,000 options$0.32CDN. The company (Silvermex Resources Ltd.) has paid for this service. Equedia.com currently owns shares of Silvermex Resources and may purchase shares without notice. We intend to sell every share we own for our own profit. We may sell shares in Silvermex Resources Ltd. without notice to our subscribers.

You should independently investigate and fully understand all risks before investing. We are not a registered broker-dealer or financial advisor. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed in this report OR ON Equedia.com will be the full responsibility of the person authorizing such transaction.

Please view our privacy policy and disclaimer to view our full disclosure at http://equedia.com/cms.php/terms. Our views and opinions regarding the companies within Equedia.com are our own views and are based on information that we have received, which we assumed to be reliable. We do not guarantee that any of the companies will perform as we expect, and any comparisons we have made to other companies may not be valid or come into effect. Equedia.com is paid editorial fees for its writing and the dissemination of material and the companies featured do not have to meet any specific financial criteria. The companies represented by Equedia.com are typically development-stage companies that pose a much higher risk to investors. When investing in speculative stocks of this nature, it is possible to lose your entire investment over time. Statements included in this newsletter may contain forward looking statements, including the Company’s intentions, forecasts, plans or other matters that haven’t yet occurred. Such statements involve a number of risks and uncertainties. Further information on potential factors that may affect, delay or prevent such forward looking statements from coming to fruition can be found in their specific Financial reports. Equedia Network Corporation is a distributor (and not a publisher) of content supplied by third parties and Subscribers. Accordingly, Equedia Network Corporation has no more editorial control over such content than does a public library, bookstore, or newsstand. Any opinions, advice, statements, services, offers, or other information or content expressed or made available by third parties, including information providers, Subscribers or any other user of the Equedia Network Corporation Network of Sites, are those of the respective author(s) or distributor(s) and not of Equedia Network Corporation. Neither Equedia Network Corporation nor any third-party provider of information guarantees the accuracy, completeness, or usefulness of any content, nor its merchantability or fitness for any particular purpose.

 

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