HL & GPL

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soonerborn
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HL & GPL

I made a bunch off of  both of these in the past and am looking to get back in.  Opinions?

HL

Low debt

New mine, total 3 now

Hedged pb and zn but no hedge in au and ag

GPL

no debt

no hedge

I think both of these are pretty well positioned to take full advantage of any price gains in the metals.  Any problems that I am not seeing?  I didn't go through in detail just brushed over several miners and these 2 stood out as being well positioned.  Probably HL more so than GPL.

Edited by admin on 11/08/2014 - 06:08
Big Dutch
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I think HL

Is a great long term investment and price is pretty good here.  Just a suggestion though, you may want to wait till Friday to purchase.  It's had a pretty good run in the last couple of weeks and it's option pain point is $3.00 so it may drift down towards that by options expiration on Friday unless silver price explodes by then.

DavisRamsey
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The best silver miners are AG

The best silver miners are AG and EXK without a doubt. Since EXK has a smaller market cap, you'll likely get more bang for your buck with it over AG - but both have the best fundamentals of any pure silver miner. 

Problem with HL is management. Their recent acquisition was a poor decision for many reasons (few synergies, primarily a gold mine, very costly). If you want the best management in the business, you want AG and EXK.

Problem with GPL is they don't have the production growth that AG and EXK do. And their management, while better than HL, is still not the caliber you get with AG and EXK. The stock did very well from 2008-mid 2011, probably helped due to the fact that they got listed on AMEX a month before silver peaked at 49, thus the bubble was in full force. I don't think it'll materially outperform to the same extent now. 

If you want a pure silver miner, it's a toss up between AG and EXK. Best management, both growing production 20-30% yearly, all mines are safe in Mexico, and they are cash flow positive at $20 silver. I'd add SLW but it's market cap is so big that you simply won't get the same returns as you will with AG and EXK. Personally, I wouldn't buy a miner with over a 1 bln market cap since there are so many good ones to choose from below that level. AG is well above that now. I do not plan to buy any more mining stocks other than perhaps TGD - already loaded from lower levels. But my advice would be to avoid HL completely, and GPL is an alright buy since it may get a good lift if silver mania takes hold again. HL is not worth messing with given the other options which are far superior.

soonerborn
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I have bought a bunch of

I have bought a bunch of EXK.  Was looking to spread my bets a bit.  Sorry for not making that clear.

DavisRamsey
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I own AG EXK SAND PVG MUX. I

I own AG EXK SAND PVG MUX. I researched every silver/gold stock out there pretty much other than ones that only trade OTC. Came up with these five based on management, mine location, future/past production growth, and debt levels. Looking to buy TGD in the future but don't own it yet. Right now, SAND is the best value in my opinion. If you're already heavy into EXK, better off spreading your bets into a gold stock. Even if you want another pure silver miner, still think you're better off with AG over GPL. But GPL would probably be my next recommendation, primarily because if we see another run like April 2011 then GPL should really take off.

lakedweller2
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GPL

Great Panther had gotten beaten down with all the others.  However, they are a producer and had record production.  The problem, as with all the miners is, with the price of gold and silver depressed, their earnings were cut compared to prior quarters.  If there is an increase in the price of silver, then things should look better for the miners if they are still viable.

EXK looks good because they were able to hold their product off the market during this period of price suppression.

This weeks kereport.com has some discussions about who may or may not come out of this past suppression period and there is some disagreement whether future earnings will even matter.

I own both EKK and GPL and both are current losses but won't take much to break even in the near future.

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