Minera Andes (MNEAF.OB)
Dear Bottarelli Research Member,
Just like last week, we’ve once again enjoyed a huge boost for our small cap stock picks, as the metals and mining sector have taken center stage. GMO is setting yet another new high, PLM is taking off (and it’s only begun) and URRE and URZ are also setting new highs. At the same time, YCKM just closed on their Juniper Ridge project – and folks – this should be a very exciting play. Looking specifically at GMO, I want to be sure that you take your seed money off the table. As with all of our small cap plays, once you get 100% returns or better, I recommend taking your original investment off the table and letting the remaining position ride.
Also on DNDN, I hope you took some of your profits off the table as the stock blasted right up to the $25.00 area I spoke about last week. I have been closely monitoring it alongside Bryan, and we both can tell you that volatility will keep increasing as we get closer to that May 15th FDA meeting. I do believe that we will see $25.00 again before the FDA meeting, and I do again believe they will get approved. So for anyone not yet involved in DNDN, I would buy at the $15 to $18 level and sit tight.
Now on to this week’s play…
Since we’re having so much success in the metals sector, I’d like to bring you yet another promising metals play that I have been around for a number of years. They have over 400,000 acres of land under their belts in Argentina, and the seismic mapping and drilling they’ve been doing for 2-3 years has now verified a proven resource that is getting bigger on each drilling. Combine that with a new joint venture partner, and you have a small company that is now ready to start production in Q3 or Q4 of 2007. I believe we’ll once again have a great chance for a 100% winner as all the wheels are now in motion.
Add a sustainable commodities bull market into the equation along with the low amount of silver in the world, and you have a very attractive small cap stock to own right now. The company is Minera Andes (MNEAF.OB) and let’s buy it under $2.00. Now I’ll turn it over to Bryan and let him give you his thoughts on our newest little gem.
Sincerely,
“The mines of tomorrow begin with the exploration programs of today”
- Minera Andes Investor’s page
When it comes to finding undervalued mining plays, I’ve learned long ago that Mark is the absolute master. But when I look at Minera Andes, I see a company that’s about to begin mining operations in 2007 – and that’s really when investor interest begins to pile into small stocks like this. So the trick, of course, is to buy these future stars months ahead of the crowd to achieve the full benefits of the run-up in share value. And that’s exactly what we’re doing here today.
A little background: Minera Andes engages in the acquisition, exploration, and development of 177,986 hectares of mineral property in Argentina, and their San Juan project is the one that looks to be the most promising. Consisting of 5 properties totaling 24,318 hectares in southwestern San Juan, it was just announced on Tuesday, April 10th that this advanced stage exploration project has increased their silver and gold reserves by 71%. Here is the breakdown according to recent figures:
- Proven and probable mineral reserves: 1,160,859 tonnes (t) with an average grade of 7.7 g/t gold and 406 g/t silver
- Gold contained: 288,094 ounces proven and probable reserves
- Silver contained: 15,229,380 ounces proven and probable reserves
- Average gold production: 60,633 ounces per year
- Average silver production: 3,119,533 ounces per year
- Average operating cost: $200 per ounce of gold equivalent
- Mine life increased from 4.3 years to 6.8 years
On an annualized basis, Minera Andes’ initial production is estimated to be 60,000 ounces of gold and 3.1 million ounces of silver per year. And best of all, production is scheduled start up in the second quarter 2007. That means now is the time to own these shares while they’re still overlooked and undervalued. With a market cap of 304.63 million and a 52-week share price increase of 72.07%, it looks like the stock has a lot of room to move higher. Throw in a total cash position of $6.26 million with only $1.95 million in debt, and I would not be surprised to see this small company bought out by a big major. After all, they’ve already done all the ground work and proven the recourses. What cash-flush major would not want to own a company like this? As your newest small cap stock play, let’s buy Minera Andes (MNEAF.OB) under $2.00 per share.
PLAY: Buy shares of Minera Andes (MNEAF.OB) at or under $2.00, good for the week.
Sincerely,
© 2012 CSR Group, LLC. All rights reserved. Published in USA.
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