Bear Creek Mining (BCM.V)

Bear Creek focuses on the production and sale of gold and silver. Net debt of ~$70 mln is on the higher side and operating cash flows are slightly positive ($4.8 mln) over a twelve month basis. We would view it as higher risk but as noted, if silver prices hold up, the name should do ok. 
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Decent company if you really like leverage to the silver business. Decimated. Really tough balance sheet. Difficulty with existing operations. Negative cashflow. He's very nervous about its leaving exploration expertise to go into production.

Highly leveraged silver play.
Jury still out on skills with regard to production.
Has owned shares in the past.
Will take time to see how company plays out. 

Their Latin America mine is now at the permitting stage. A low grade silver/lead/zinc system. It is partly tracking the rise in metal prices and the expectations that were coming out. They have arbitration going on at the Santa Anna project, so they may get some sort of payout for that. The bigger guys are feeling the worst is over and are now looking down the food chain and starting to acquire smaller companies.

He remembers this company coming to his office when he was a portfolio manager, more than 10 years ago. They were talking about how they had this great potential and were going to become a huge silver mine. The stock was in the $6 range, and it really hasn’t done anything in a very, very long time. This is a situation where at some point you have to throw in the towel.

Massive deposit, but low grade and cap X is really high and at these silver prices it does not work. If silver is going to go up then this is one of the better stocks to own.