Top Ten Silver Takeout Targets

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TheGoodDoctor
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Top Ten Silver Takeout Targets

Courtesy of the Midas Letter

http://www.midasletter.com/index.php/midas-letters-top-10-silver-takeout-targets-11021501/

Edited by admin on 11/08/2014 - 06:09

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mrgneiss
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Great article TGD, thanks........

What do you reckon the typical premium (%) would be for these takeover candidates over current share prices?

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@mrgneiss I had someone call

@mrgneiss I had someone call me that represented Exeter and Extorre. I asked the guy a couple of questions. He recommended the book Mining Explained. I specifically asked about different business models and what typically a premium is on a buy out. He said it depends on how good of a project it was. We specifically spoke of gold. He said for a moderate project it could be a buyout of $50 to $60 an oz. For a more prolific project, he specified $500 to $1000 an oz.

We spoke of the example of Kinross buying Red Back Mining, which has yet to be determined, but he suggested they did overpay. Bottom line he said about a 40% premium is given on a stock price typically. Again we were talking gold at the time. But really, unless there is some major consolidation soon, things could go ballistic on buyout prices IMHO. This is just by going on Embry's latest suggestion over at KWN that the gold/silver stocks will be like the Interenet stocks back in 1999. Hope that helps!

Here is a link to buy the book for $40

http://www.smenet.org/store/mining-books.cfm/Mining-Explained,-10th-Edition/9041

It's by Northern Miner, which I think is a magazine from Toronto.

Looks like you can get it from them here for $30:

http://www.businessinformationgroup.ca/shop/item.aspx?itemid=73

I do intend to buy this book very soon.

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Thanks TGD!  I had been

Thanks TGD!  I had been thinking along the lines of 40% as well, but I think it will only go up from here, and get crazy at some point in the future.

Mining Explained - an excellent book, for anyone interested investing in any type of miner/explorer it is a must read, I actually have two copies and one is near to me as I type...........it is quite readable compared with most geology or mine engineering tomes.............I didn't know it had info like buyout numbers in it, I guess I'll have to finish reading it!

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Durn.. I need to get me some

Durn.. I need to get me some more shares in some of those companies! I only own about 2 out of the 10 ....because as Eric O knows.........................I can't afford them. surprise ......................but....slowly I'm adding and building. Sigh.

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@mrgneiss I'm not sure Mining

@mrgneiss I'm not sure Mining Explained breaks down a buy out. This is just what this gentleman expressed to me. If you find that to be true that the book does, please let us know. I have yet to buy the book but was looking to buy it this week or next week.

I am also looking to buy other books if anyone has any ideas on mining project analysis or business models/buyout deals. Most of what I am picking up is on a company by company basis. Like JV's, or companies like Pinetree Capital or Sprott, or even companies that just find the projects and sell them off piece by piece.

Here was another book by Adrian Day I was looking at getting. I have read some Gold Report articles with him being interviewed. If anyone has read this let me know if it is good. Thanks.

http://www.amazon.com/Investing-Resources-Profit-Outsized-Potential/dp/0470613262/ref=wl_it_dp_o?ie=UTF8&coliid=I18D61FKPM82ER&colid=2F66DOE6ZVHG4

PS If you don't mind typing up the table of contents of Mining Explained (1oth edition) I would be grateful. I couldn't find one on the web.

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Sure, I'd be glad

Sure, I'd be glad to........here you go:

1.  Intro

2. Basic Geology

3.  Ore deposits

4. High-tech prospecting

5. Sampling and drilling

6.  Mining Methods

7. Processing Ore

8. Mining and the environment

9. The Mining Team

10. The Business of Mining

11. Feasibility:  Does it pay?

12. Metal Markets

13.  Making Sense of the Numbers

14. Investing in Mining

And then there are some appendices.

There aren't that many books, well, actually there are, but most are highly scientific or technical.  You can learn a lot from some writers analysts, for example Brent Cook https://www.explorationinsights.com/   or Marco   http://goombarhsedge.blogspot.com/

A great place to learn that has many seminars is the biggest prospecting and mining show in the world, PDAC, the Prospector's and Developer's conference, in Toronto in March of every year.  There really aren't that many prospector's left but most of the explorer's and juniors you are familiar with.  I saw a great presentation by Rick Rule in 2010.  If you are investing in the juniors/explorers, and the amount is more than 10K or so, I think you should do this show at least once every couple of years.

http://www.pdac.ca/pdac/conv/index.aspx

Here's a good report I stole recently from Goomba's site:

http://goombarh.fileave.com/CanaccordGoldGoldequitydisconnect.pdf

There are some online courses to, but these are more geared towards accreditation and are expensive, and mostly for mining professionals, not analysts, but some look interesting:

http://www.edumine.com/

This should keep you busy for a while!

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LOL Ginger

I thought we cured you of that "can't afford" problem?  No? 

I saw somewhere else you said you bought Cream and Golden Predator.  Seems like you have a pretty good eye to me.  Don't need no stinkin' list, ha ha.

BTW, I'm surprised that Cream isn't on this list.  Seems like a no brainer.

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Eric Original
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The Northern Miner

The Northern Miner is a weekly newspaper that covers all these miners we are always talking about.  Large and small.  Back in the day, before I had much for internet access, I used to subscribe.  Actually physical newsprint in my mailbox.  Seems pretty old fashioned now.  

They still have the hard copy, but it's also available online now.  You have to subscribe to get anything beyond the basic headlines.  But they do have a free 4 week trial offer.

http://www.northernminer.com/subscribe/freetrial.aspx

regular basis online rate is $99/yr

If you go to this front page right now, you'll see a headline about Bayfield, and also further down they have a whole section about the Yukon.

http://www.northernminer.com/

It's been years since I let my paper subscription lapse, but I'm thinking about giving the online version another go.

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Eric Original
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The Northern Miner

The Northern Miner is a weekly newspaper that covers all these miners we are always talking about.  Large and small.  Back in the day, before I had much for internet access, I used to subscribe.  Actually physical newsprint in my mailbox.  Seems pretty old fashioned now.  

They still have the hard copy, but it's also available online now.  You have to subscribe to get anything beyond the basic headlines.  But they do have a free 4 week trial offer.

http://www.northernminer.com/subscribe/freetrial.aspx

regular basic online rate is $99/yr

If you go to this front page right now, you'll see a headline about Bayfield, and also further down they have a whole section about the Yukon.

http://www.northernminer.com/

It's been years since I let my paper subscription lapse, but I'm thinking about giving the online version another go.

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Northern Miner, part deux

Occassionally when doing DD at a miners website they will have a link to an authorized copy of a Northern Miner article about them.  This will give you a flavor for the kind of article they usually have.  Here is one I found when looking at Trelawney Mining.

http://www.trelawneymining.com/pdfs/02118-Trelawney%20Mining-reprint-Jun%2027,%2011.pdf

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Thanks mrgneiss. Also, I

Thanks mrgneiss. Also, I stumbled across a page at Rick Rule's web site that has some educational stuff. He is now the American branch of Sprott Asset Management if anyone is interested in that.

http://www.gril.net/education

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Bayfield and Exeter

Have had some of both for a while now. What an exercise in patience. Waiting is.

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Ah ...there you are Mr. Eric

Ah ...there you are Mr. Eric O. ...Yes, yes.. I know how to click the 'history' tab and then find myself. ..indecision ..but I get busy.. y'know? ...and then I forget.. and then.. ..(excuses..excuses..)

Re: the 'I cannot afford the expensive miners' issue  ...well, old habits die hard. But you are right. I am off now to go write 100 times "I can afford any stinking miner I darn well want to buy".

cheeky

BTW..... I counted the miners today on my watch list.. ..the ones I DON'T own any of yet but would sorta maybe like to from the DD I am doing/have done and recos from this blog ...... ......There are EIGHTY-TWO of them!!!! surprise  ......lol. I will NEVER be able to affo... ...uh.. ......well ....maybe someday... :D

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Just kiddin ya Ginger

Just kiddin' ya Ginger.  I think you are doing great on everything.  Investing,  canning, shooting, everything.

It's actually kind of funny.  Here I've been trying to get you to consider some bigger miners, but over the past week I've actually bought a few real tiny ones.  Bizarro World.

82 on the watch list??  Wowza....

Might be easier to start a list of what you are NOT watching, lol.

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TheGoodDoctor

TheGoodDoctor wrote:

@mrgneiss I had someone call me that represented Exeter and Extorre. I asked the guy a couple of questions. He recommended the book Mining Explained. I specifically asked about different business models and what typically a premium is on a buy out. He said it depends on how good of a project it was. We specifically spoke of gold. He said for a moderate project it could be a buyout of $50 to $60 an oz. For a more prolific project, he specified $500 to $1000 an oz.

We spoke of the example of Kinross buying Red Back Mining, which has yet to be determined, but he suggested they did overpay. Bottom line he said about a 40% premium is given on a stock price typically. Again we were talking gold at the time. But really, unless there is some major consolidation soon, things could go ballistic on buyout prices IMHO. This is just by going on Embry's latest suggestion over at KWN that the gold/silver stocks will be like the Interenet stocks back in 1999. Hope that helps!

Here is a link to buy the book for $40

http://www.smenet.org/store/mining-books.cfm/Mining-Explained,-10th-Edition/9041

It's by Northern Miner, which I think is a magazine from Toronto.

Looks like you can get it from them here for $30:

http://www.businessinformationgroup.ca/shop/item.aspx?itemid=73

I do intend to buy this book very soon.

I was just able to get this book at the latter link. Also, I asked if they would throw in the recent copy of the Northern Miner and she said she would! $7 shipping. $37 delivered. Just be forewarned that she did say it would be 3 to 4 weeks because of a postal strike in Canada. Can't wait! Cheaper than an oz. of silver! cheeky

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*points up* Ginger buy that

*points up* Ginger buy that book above! Mining Explained! smiley We can then start a thread when we start reading it to discuss important points! It will be like our very own book club! mrgneiss can lead the group since he had the book before many of us! cheeky

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I forgot to say thanks for

I forgot to say thanks for the links. I very much enjoy listening to Brent Cook. I subscribed to his e-mail list and he has some valuable insights on explorers and juniors. Also, Marco G is a pretty smart guy. I enjoy his articles over at www.seekingalpha.com He is kind of a goofball at times. I was unaware that he had a blog. I will look into him there.

Really want to go to PDAC or something like that in the future. There are a few of those I wouldn't mind attending. There is the Chicago Resource Expo held twice a year outside of Chicago too.

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