US Silver (USSIF.PK)

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Clubfoolish
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US Silver (USSIF.PK)

USSIF reoprted 1Q10 earnings this morning, and will do a conf call at 11 AM today.

Earnings were excellent and portend an excellent 2Q10 for the miners as a whole.

http://finance.yahoo.com/news/US-Silver-Reports-1st-Quarter-bw-2125869405.html?x=0&.v=1

Investor Conference Call Dial-In Details

These results will be discussed during an analyst and investor conference call with senior management on Friday June 17th at 11 am EDT. A question and answer session will follow management’s presentation. Participants may join the call by dialing toll free 1-888-231-8191 or 647-427-7450 for calls from outside Canada and the US. Please dial in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until Friday, June 24, 2011 at midnight. To access the archived conference call, please dial 1-800-642-1687 or 416-849-0833 and enter the reservation code 74702296.

ABOUT U.S. SILVER CORPORATION

U.S. Silver, through its wholly owned subsidiaries, owns and/or operates the Galena, Coeur, Caladay and Dayrock silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine being the second most prolific silver mine in US history. Total silver production from U.S. Silver's mining complex is approximately 220 million ounces of silver production since 1953. U.S. Silver controls a land package now totaling approximately 14,000 acres in the heart of the Coeur d'Alene Mining District. U.S. Silver is focused on expanding the production from existing operations as well as exploring and developing its extensive land holdings.

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

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zman
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high production costs?

US Silver is one of my largest holdings, stock is a gift here, but production costs were around $18.00 per oz, very high. I hope they can get that fixed in the months ahead, if so, US Silver will no longer be a "penny stock".

petersburggray
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potential for lower cash costs going forward

Dig deeper.  Yes cash costs were high for the quarter, but that was because the recognition of revenue on 2 of the 7 railcars of concentrate produced was pushed out until this quarter because the cars did not arrive at the smelters in Canada until April.  The costs for running Galena and Coeur are fixed at about $3mm/mo.  The mills have 1400 tpd capacity and are only running at 66% capacity right now so this excess mill capacity gives USA the potential for greatly increased production and much lower cash costs, all the company needs to do is hoist more ore.  Hoisting more ore is not far fetched since minable faces have increased by something like 50%  over the last couple years and exploratory drilling has been very successful.  Recently in an interview Tom Parker talked about $10/oz cash costs being a goal which would put production at 3.6mm oz Ag.  I think Galena and Coeur have the potential to produce 7mm oz Ag/year which would put cash costs below $10/oz.

zman
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I like what I am hearing,

I like what I am hearing, with production costs of $10oz, this would turn US Silver into a cash flow machine, and with 3.6 million ozs of production, and maybe higher in the future. Bottom line, US Silver has no business trading under a $1. I am just happy me and my father are loaded up on this one, it's going to be a fun ride!!!

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Be aware that US Silver has

Be aware that US Silver has hedged approximately 25% of their production.

petersburggray
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hedge

The hedge is for 500k ozs Ag during 2011.  About half remains to be delivered.  Right now there are no hedges on for 2012.  USA also has no debt, pays no royalties, and has no historical environmental liability.

mouser
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Big insider buying today

Last Updated: August 22, 2011

Top 10 Stocks By Net Buys Volume

Symbol Company Name Insider Buys Volume Insider Sells Volume Net Buys Volume USA *U.S. Silver Corporation 1,701,500 0 ****1,701,500 SNY* Sundance Energy Corporation 337,500 0 ****337,500 EAS* East Asia Minerals Corporation 113,500 0**** 113,500 LUC Lucara* Diamond Corp. 96,500 0**** 96,500

IMI*

International Millennium Mining Corp. 83,000 0**** 83,000

SWN

*Selwyn Resources Ltd. 80,000 **** 80,000 LEA* Leader Energy Services Ltd. 76,000 **** 76,000 NKL* Prophecy Platinum Corp. 67,900 **** 67,900 TWD* Trade Winds Ventures Inc. 64,000 **** 64,000 SVV* Solvista Gold Corporation 57,500 **** 57,500
maravich44
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US Silver USSIF/USSIF.PK

Speculation on Yahoo finance message board that Sprott is accumulating shares.

rowdyboy
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Bullish US Silver

I have been accumulating USSIF since October 2010, and have a large position now.

I feel a certain level of confirmation in my decision since Sprott filed his 10% ownership document. Whew!! I feel good!! I have much respect for Mr. Sprott. I like to follow decisions of billionaires.

Purchasing this mine complex for $15 million from CDE was a steal. Sure they have a lot of work to do to get it back in shape, since it was closed when silver was not profitable, but now they have lots of cash flow to put in to drilling, defining resources, and mine and mill upgrades. Galena is a cash cow now, and Coeur will be online next year as well. Starting with existing mines with existing gear is a plus. The mines are connected underground via a tunnel system with tracks for ore trains. Do you know how much money it would take to start this from scratch? With the lead time on gear?

The market cap on this stock is still a relative bargain in my opinion:

  • 2.5 million silver oz estimate for 2011
  • 2.8 to 2.9 million silver oz estimate for 2012
  • 85% of production is silver (remainder is copper/lead)
  • 20% silver hedge agreement expires at the end of 2011 (more revenue)
  • 1 for 5 stock split reducing outstanding shares to approximately 68 million
  • upcoming listing on TSX big board and AMEX this fall (currently on Pink Sheets and TSX Venture)
  • Earnings per share would be estimated to be around 40 cents per share annually after split and increasing earnings with rising price of silver
  • Their cost of production is a little high right now ($15.37 per oz after byproduct credits), because they are only at 65% of production. Plenty of existing room for more ore to be processed. Plenty of room for costs per oz to go down, which is good for stock price appreciation
  • Good liquidity, 1 to 2 million shares per day on Pinks and TSX:V combined and will get better after listing on the major indexes
  • The stock is volatile in the range of 55 cents to 82 cents per share, and is tradeable on swings
  • Sprott recently filed 10% ownership documents

My opinion is this stock is undervalued compared to its peers, like GPL. It just started cash flowing this year, and at the end of Q2 they had $22 million in cash on hand, and debt free. I estimate they now have over $25 million in cash on hand.

See Earnings Release: http://finance.yahoo.com/news/US-Silver-Reports-Record-bw-771974171.html?x=0&.v=1

End of Q2 2011 Comparison of USSIF and GPL:

U.S. Silver - 648,322 silver oz produced (silver equivalent oz not reported but I estimate well over 700,000 oz) – Gross Revenue $30.8 million, Net Income $6.5 million - $195 million market cap

Great Panther – 386,210 oz silver produced (562,944 silver equivalent oz) – Gross Revenue $24 million, Net Income $2.5 million, $405 million market cap

rowdyboy
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US Silver - quarterly conference call from Aug 15, 2011

Good detailed info from management on this quarterly call: http://www.us-silver.com/i/misc/August-15-2011_83160566.mp3

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like the M's here

this lOOks to be a value share here and now at .70. anyone have reason this stock has any lower to go?

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dakota15
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Reverse Splits

Reverse splits tend to sour investors and generally lead to a lower share price, in fact in most cases the end result is less than expected. However, there are cases (albeit few) where the split helps. Might be the case here... or not. Only time will tell.

rowdyboy
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Survivalwstyle

I gave up trying to predict whether it will go down or up short term, it is a volatile stock. It is being accumulated by Team Sprott. After his 10% ownership filing, US Silver has still leads on TSX:V most days in insider buying transactions, so I think Sprott has bought another few million shares last 2 weeks at this price range.

When this reverse split happens and the TSX listing happens soon, this will start moving to the upside, until then it may be stuck in this 70 cents to 72 cents range. Hopefully the price of silver will cooperate. This could be great timing on US Silver's part.

rowdyboy
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Reverse Splits

This is true. In this case, the shareholder comments have been positive because we realize that it is a requirement to get on the TSX and AMEX to have shareprice at a certain level. After the reverse split, for example, the stock price as of today would be $3.50 range. Even better, with less shares, the earnings per share would be increased to approximately 40 cents per share range annually. How many small cap silver producers with a $210 million market cap have earnings like that? Team Sprott seems to like its potential.

dakota15
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Agreed

I agree, I think this reverse-split will benefit US Silver shareholders in the long term. Short term it may result in smaller investors turning sour, without seeing or realizing the big picture. I myself, will wait until the split takes place before making a decision as to the direction US Silver's price heads. I like what this company has to offer, but trepidation over reverse-splits leaves me in a holding pattern for now.

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There are times when a

There are times when a reverse split makes sense. AND this is one of those times. Many funds cannot buy stock under a buck no matter how good the fundamentals, and some listing requirements may prevent USA -v from moving onto a major exchange.

The reverse split is a simple way to get the share price over 2$ and give access for inclusion to funds and indexes.

mouser
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rowdyboy wrote How many small

rowdyboy wrote

How many small cap silver producers with a $210 million market cap have earnings like that? Team Sprott seems to like its potential.

Well RVM  with market cap around 150 million $ earned .23 in the last Q alone

REVETT REPORTS RECORD EARNINGS FOR Q2 2011

Revett Minerals Inc. has released its second quarter 2011 financial results. All currency figures in this release are in United States dollars unless otherwise indicated.

The company recorded quarterly revenues of $18.8-million, a 102-per-cent increase compared with the same period last year. The company also increased its cash and cash equivalents on hand at the end of the second quarter to $14.7-million from $8.8-million at the beginning of the year.

For the three months ended June 30, 2011, the company had net income of $7.9-million or 23 cents per share. These record results are due to higher metal prices, significantly improved metal grades, and higher metallurgical and operating efficiencies.

Revett president and chief executive officer John Shanahan said: "We are delighted to announce record earnings of 23 cents per share for this quarter which is a wonderful reflection of the hard work, dedication and resourcefulness of our operating team at the Troy mine. We remain committed to meeting our near-term production targets as well as longer-term expansion plans at Troy. Troy continues to play a vital role and increase our cash position as we work toward advancing development of our nearby significant silver/copper deposit at Rock Creek."

rowdyboy
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Team Sprott

I spoke with Investor Relations at US Silver today. I brought up the fact I think it is very positive of the recent 10% ownership filing of Sprott. I said I noticed several million more shares purchased by insiders since the filing, and she stated Team Sprott now owns 12% of the company. So I have confirmation it was Sprott doing the insider purchases announced since his filing.

I told her I am extremely happy with that news, and she said Team Sprott is in touch with them on a weekly basis. She also mentioned they are spending more money on events to get more investor exposure, like the Denver Gold Forum this fall, and other events in Europe. I agree that they need to start marketing themselves more.

My personal opinion, ...expect to see Team Sprott making recommendations for US Silver at some point in the near future. Exciting times.

rowdyboy
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Revett (RVM)

Mouser, I was expecting you to mention Revett. I have been following it for some time. I have not yet taken a position, but I have done research and I like it. I believe it also is greatly undervalued for what it has in the ground. As Rock Creek progresses, I may take a position as we approach. Until then Troy is cash flowing nicely, with improving silver grades. They seem to be a very well run company.

I like producers, with increasing production, cash flow and future projects. I also favor miners in the US over Mexican miners. Revett fits my investment parameters as well. I may join you over in the Revett Forum so I can keep abreast of the developments.

rowdyboy
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Q2 Silver Equivalent oz production

I couldn't find the silver equivalent oz production totals for Q2, so I learned today from Investor Relations that for Q2, the silver equivalent production for US Silver was 734,153.

That includes 648,322 in silver production, plus copper and lead for a total of 734,153 silver equivalent oz. with a $195 million market cap at the end of Q2

As a comparison, Great Panther was 562,955 silver equivalent oz for Q2,  with a $405 million market cap at the end of Q2.

After US Silver gets on the TSX and AMEX this fall, I am hoping to see a repeat of what happened to GPL when they got off the Pinks and hit the big boards.

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RVM is a great example of

RVM is a great example of when a reverse split has worked very well (as I'm sure you're aware of, Mouser).  Hopefully USA will see a similar result.

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