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Greetings! MGN Saves the Bears
(& Silver vs. Paper Money)
Silver Stock Report
by Jason Hommel, April 8, 2014
Mines Management. I own shares. The company has not paid me to write this article. That means I benefit only if the stock goes up.
Mines Management is a company stock that I feel can can rise from about $1.20 to about $20-$80/share. See my link below on why this stock is likely to do very well, even if silver prices reamin at $20/oz.
Mines Management: $1.50 to $20-$80/share. March 14th, 2014
Excerpt:
1. NPV: price target: $27.5/share
2. Resource leverage: 113:1 or 250:1
3. Expected PE ratio: price target $41/share
But with silver prices at $20, and a bad year in the sector last year, some people are discouraged, and they have emailed me. The biggest concern of about three of my readers was that maybe the company will never get a permit because the proposed mine might threaten wildlife.
However, Mines Management just received a favorable "non jeopardy" biological opinion from the government last week. This was very good news, and the stock moved up 15% on the day of this announcement.
"The U.S. Fish and Wildlife Service concludes in the Final Biological Opinion that, based upon the preferred plan of operations and the substantial environmental mitigation plan the Company will undertake, the project poses no jeopardy to endangered or threatened species in the area around the project." The government says the mine will NOT threaten endangered species! That's more than encouraging!
This means that permitting appears to be the next event, and soon, perhaps within a few months. Mining development companies typically get a big boost to their stock price when they get a mining permit.
After permitting, then major fundraising will begin, and that also tends to cause a mining stock's price to rise.
Other steps after permitting include more drilling leading to a final feasibility study, then more fundraising, then mine construction.
Another concern about Mines Management is about a small mining claim dispute. Some people pessimistically worry that the company will not be able to access their own property. But those people don't seem to know about easement rights.
"Under both federal and Montana law, access to mining claims or projects across accompanying claims is guaranteed," Dobbs says. - See more at: http://www.spokanejournal.com/local-news/mines-management-trims-expenses-posts-smaller-loss/#sthash.PiOAECVX.dpuf
The last concern is financing. But the biggest financing always always takes place after final permitting, and after the final feasibility study.
Permitting should be easy. There are many multi billion dollar funds that own stock in this company, and any one of them could finance the entire project.
This is a company that will need to raise $550 million, but looks to be able to earn profits of about $238 million per year, based on my last calculations. That kind of payback pulls money in like a magnet, and encourages me that financing should be one of the easiest challenges ahead. I have seen less economic projects raise many billions in the mining sector.
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Here are some thoughts that came to me this week. I shared them on facebook a few days later. It was one of my most popular recent posts.
https://www.facebook.com/jason.hommel
Silver is money, rare, honest, true, heavy, measureable, weighable, countable, the best electrical conductor, a great heat conductor, the most reflective metal, good, pure, shiny, acoustical, antibacterial, valuable, the free markets choice for thousands of years, rewards production, savers, and thrift, maintains honest and limited government, restrains government, promotes freedom, is slandered, misunderstood, ignored, undervalued, overlooked, maligned, hated by bankers, usurpers, and usurers, is traded, hoarded, saved, appreciates, goes up in value, rewards miners, promotes the production of byproduct minerals needed by society, is beautiful, substantial, useful, is ever more useful and rare, increasing in rarity,
Paper money is plentiful, dishonest, false, adulterated, watered down, dirty, filthy, moldy, dusty, diseased, imaginary, unjust, abominable, a theoretical abstraction, not identifiable, not definable, not measurable, inflatable, inflationary, intrinsically worthless, overvalued, used up paper, temporary, monopolistic, parasitic, easily counterfeited, a broken promise, a cause of taxes, oppresses the people, rewards laziness and political connections, corrupts politicians, subverts governments, heavily promoted by liars, is spent quickly, depreciates, grows more worthless, rewards debtors, rewards paper money printers, promotes tyrants and excessive and intrusive government, is a tool of theft, is evidence of theft, causes theft through imaginary and phantom capital gains taxes from inflation, causes theft from savers through devaluation, is worse than worthless, is harmful, causes economic distortions, encourages bad investments, encourages speculation, encourages debt, encourages leverage, discourages business, keeps alive bankrupt businesses, delays the natural business cycles, causes depressions, causes wars, funds wars, was discredited for hundreds of years in China, has currently lasted barely 101 years or 43 in America depending on how you count, has lost 99% of its value in 100 years in America,
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