Americas Silver Corp. (SPM-T)

MAG has a good project in Mexico. However, with Americas Silver, you have better leverage with active mines. Execution from a time perspective will come up faster. However, he has a $21 target for MAG. Silver will probably move faster than gold. If silver hits $20, he would go with SPM.

Stock is under pressure because people fear an interruption in production this year. They are now finding a bit more outside of the original envelope. So that is going to supply about 50% of this year’s production.

The reason it went down besides the price of silver was that there was a fear that their reserves would be insufficient for their mill. He has spoken to management and was told there would be no interruption in the operation of the mill. Is thinking of buying more.

Had a good Christmas present. Production will increase significantly. You have to be prepared to wait a year before buying it.

Has been adding a little bit to his holdings at this price. Trading close to cash value. The key is that it is still producing. Cost of production is going to come in at around $14 so they are still making money. Management has reorganized the company and have done a great job of trimming all the fat.

Has been a disappointing story in-as-much as they are trying to prove up additional reserves and improve the grade they are taking out of the ground. Thinks the story is intact, but unfortunately, it is going to take a year or 2 longer to prove up the reserves and to build up future production. The good news is that they are producing $.07 a share in cash flow this year.

(A Top Pick September 7/12. Down 67.49%.) This has the highest leverage to the price of silver in the ones that he owns. A nicely leveraged machine to the price of silver. The US’s third-largest silver producer. Top-notch management.

Very positive on the new chair and the new CEO. Have just come out with a new resource statement, which cleared the air on the reserve position on the Western Sonora. Expect there will be an expansion of the existing mill from 1500 tons a day to 2700 tons next year. You will have to have some patience.

Considers this as a blue chip. Has taken over the US’s second-biggest pure silver producer. The guys who were running Barrick have come over to run this so it has great management. Cost of production is about $17. Has quite a bit of upside because it has the best leverage to the rise in the price of silver.

Looks at it as a silver play. Prefers SGN-X, but owns both.

Just reported today and their financials will be out tomorrow. Costs are coming down and production is going up and he is very bullish. P/E ratio has been reduced because of the gold market generally. (See Top Picks.)

Still holding and is waiting for the resource and reserve figures from the Nuestra Senora and El Cajon projects. Still very keen on this.

Looking for good news next week. Feel they will go ahead with the expansion in the Western Sonora. Based on the increased production and increased cash flow, you could see $0.30-$0.40 a share by 2014 and they may add to that if they build a new mill over on the Platte River property. Overall he is looking for $1.75-$2.00.

At issue is a forthcoming result from the revised reserves from the Western Sonora. Getting an economic assessment from 3 properties on the Platte River. Anticipating that they are going to expand the mill so you could see incremental cash flow in the 4^th quarter of next year. There is still the prospect of a new mill on the Platte River property. Thinks there could be a return to the old high of $2.40 in the next year or 2.

In about a week or so, you are going to get an economic assessment from the El Cajon property and he is highly positive on this. This, plus they get the revised reserves at Western Sonora this week. In all likelihood, you are going to see the expansion of the mill for Sonora. He has a target of $2+.