Scorpio Mining (SPM)/ (SMNPF) Way undervalued

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GoldistheFuture
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Scorpio Mining (SPM)/ (SMNPF) Way undervalued

Scorpio Mining is producing silver at around $7 an ounce and they are on pace to produce around 3 million ounces in 2011.  They are only trading at $1.30 with no debt.  Do your own DD but I dont see any negatives. 

Highlights for the First Quarter Ended March 31, 2011 and Subsequent Events:
 

  • The Corporation achieved record mine operating earnings of $12.5 million in Q1 2011, an increase of 823% over mine operating earnings in Q1 2010 and 123% over mine operating earnings in Q4 2010.
  • Net earnings were $6.6 million or $0.03 per share (basic) for Q1 2011 compared to $18.6 million or $0.17 per share (basic) for Q1 2010. The Q1 2010 net earnings included a $19.8 million gain on dilution and deconsolidation of Scorpio Gold Corporation ("Scorpio Gold"). Basic earnings per share of $0.09 in Q4 2010 was due to the inclusion of $12.4 million of non-cash corporate tax recoveries.
  • Adjusted EBITDA(1) increased 483% to $11.6 million in Q1 2011 compared to $2.0 million for Q1 2010.
  • Cash flow from operating activities increased by 506% to $10.8 million in Q1 2011, primarily as a result of higher production, higher grades and better metal prices compared to Q1 2010.
  • Underground ore production in Q1 2011 increased 14% over Q1 2010 to 113,826 tonnes.
  • The Nuestra Señora plant processed 122,062 tonnes in Q1 2011, a 32% increase over Q1 2010.
  • Processed head grades during Q1 2011 averaged 115 g/t silver, 2.49% zinc, 0.98% lead and 0.42% copper compared to 88 g/t silver, 2.07% zinc, 1.17% lead and 0.25% copper during Q1 2010.
  • In Q1 2011, contained metals produced in concentrates amounted to 368,866 ounces of silver, 5.856 million pounds of zinc, 731,000 pounds of copper and 1.835 million pounds of lead; reflecting increases from Q1 2010 of 89%, 68%, 161% and 2%, respectively.
  • Total cash operating cost per silver equivalent ounce(2) in Q1 2011 was US$7.10 (Q1 2010: US$8.12) based on silver equivalent ounces of 737,833 (Q1 2010:419,681).
  • Revenue from metal payable for the quarter totalled $20.8 million (Q1 2010: $7.9 million) and was distributed as follows: silver 53% (2010: 38%); zinc 23% (2010: 33%); lead 9% (2010: 21%); copper 15% (2010: 8%).
  • Following the construction of a new power line and the installation of a sub-station, the Nuestra Señora mine was energized from the national electrical grid on January 19, 2011. This has reduced the mine's dependence on diesel-generated power.
  • On March 9, 2011, the Corporation announced an updated mineral resource and reserve estimate at its Nuestra Señora mine. The proven and probable reserves increased to 2.764 million tonnes, providing an estimated mine life of six years at current production levels.
  • During Q1 2011, Scorpio Gold issued 21.9 million shares, none of which were subscribed for by the Corporation. This resulted in the Corporation's investment in Scorpio Gold decreasing from approximately 35% to approximately 27% and creating a gain on dilution recorded in the statement of operations of $1.1 million. On March 24, 2011, the Corporation sold 8,139,568 shares of Scorpio Gold for proceeds of $5.2 million. Following this transaction, Scorpio Mining still holds approximately 19.8 million shares in Scorpio Gold, representing 19.6% of Scorpio Gold issued and outstanding shares.
  • As of March 31, 2011, the Corporation had $27.7 million in cash, compared to $12.6 million as of December 31, 2010. The Corporation used existing cash to repay the $20 million outstanding convertible debentures at maturity on May 5, 2011.
Edited by admin on 11/08/2014 - 05:09

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ferretflat
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15,000 shares

Been accumulating Scorpio since 2007, as low as $.26 .  Never saw any reason to sell it.

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GoldistheFuture
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NICE!

I have been in and out from around $0.80 to $1.70.  If they would just change their name to Scorpio Silver it would probably jump 25%. lol

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GoldistheFuture
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Good Valuation of Scorpio

http://pmsurfer.blogspot.com/2011/03/hunting-silver-juniors-what-find.html

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GoldistheFuture
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Insider purchase of 750,000 shares at $1.22 on 06/28/11

http://www.canadianinsider.com/coReport/allTransactions.php?ticker=SPM

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GoldistheFuture
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WOW! Scorpio is on FIRE!!

Canada's Scorpio Mining Corp said the amount of silver recovered for the second-quarter nearly doubled on higher production from its flagship Nuestra Senora mine in Mexico.

Recovered silver was up 95 percent at 365,692 ounces, while recovered copper rose 17 percent to 438,529 pounds.

In the second quarter, mill throughput rose 86 percent to 128,674 tonnes from the year-ago quarter.

I hope people loaded up!!

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GoldistheFuture
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Hit $2.00 today on OTC

I sold everything  at $1.90 thinking we would have some kind of pullback and it keeps going up on strong volume.  Do I buy it back and chase or patiently wait for it to come back down, if ever?

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kjm
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I think it will retrace soon.

I think it will retrace soon. Its getting quite far above its moving averages. While you wait for it to come down why not redeploy the funds into a silver that hasn't moved much yet if you can find one you're comfortable with.

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Scorpio has moved ahead

Scorpio has moved ahead nicely on the increased production numbers. Will be interesting to see the costs and earnings per share.

They have built up a decent sized reserve base ...SCORPIO MINING REPORTS NUESTRA SENORA MINERAL RESERVE OF 2.764 MT @287 AGEQ G/T

They estimated total operating costs at under 50$ a tonne.  Tis a polymetallic resource with , copper, zinc, lead and gold for byproducts.

GoldistheFuture
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Time to jump back in?

I got out at $1.90 and I am thinking about going back all in at $0.48. I know they have some issues with some resource numbers but with $50 million cash, no debt, cash flowing $4 million, expanding production, book value of $0.73 a share. Am I missing something?

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bachis
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Undervalued?

I agree with you Goldisthefuture. I search through miningstockvaluator.com companies and the most undervalued silver company seems to be Scorpio Mining. Anyone got some reports to share? or opinions?

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Scorpio rated highest 1.0 by Matlack as of Sept 4

Scorpio Mining is rated highest possible among silver juniors by Bill Matlack  at 1.0.
2013 PE projected at 10.4
2014 PE projected at 2.3

Next highest ratings are Aurcana at 1.3, Revett at 1.3, Silvercrest at 1.4, Wildcat at 1.5

Thomson One Analytics Rating System: Buy (1.0), Buy/Hold (2.0), Hold (3.0), Sell/Hold (4.0), Sell (5.0)

http://www.kitco.com/ind/matlack/sep042012_juniors.html

I first bought Scorpio at $1.00 in Nov 2010 and added more at $1.00 in Feb 2011.
I rode the stock all the way up and was blindsided by the sudden and severe drop in March 2012. Ugh! I reluctantly sold to avoid any more unpredictable losses at $1.00 in Apr 2012.
I bought back in at .55 on this past Aug 14.

GoldistheFuture
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Nice Buy Rock!

I got in at $.59.  I was watching it from $0.48 and decided to jump in and nibble.  Wish I would have loaded up like I wanted to instead of a measly 25,000 shares.  Thinking about adding when we get Bernanke saying he is holding off on QE3 on Wednesday of next week.  Also look at American Bonanza (BZA)at $0.24.  They will be in  full production by year end and will start drilling to add to their reserves in the 1st quarter of next year(They already have all of the drills and equipment needed to do the drilling in house).  They need more money to get into full production and fix some other issues so it has been beat down but things should be good going forward. 

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@ Gold is the Future

The last few months were rough on my holdings and my dry powder was minimal.  As a consequence, my "nibbles" were substantially more "measly" than yours. However, I remained confident that the summer doldrums represented a genuine buying opportunity. In the silver arena (since mid-May) in small lots I added Impact Silver($1.00), Wildcat Silver(.73), Aurcana(.76 and .88), CMC Metals(.125), CDE ($17 & $19).
Make no mistake, I badly needed the rally we have experienced since mid July. (breathing easier now).
In other PM arenas (since you asked) I added Colossus, Kirkland Lake and Primero at low summer prices.
I will definitely take a look at American Bonanza.
BTW  reading your post on this forum on July 12 (albeit some days later) gave me the nudge I needed to re-enter Scorpio.  Thanks very much for that!

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Worth to Consider

Seems like Scorpio is being hit by a steep rise in cash costs and a recent lower resource estimate. A new reserve estimate is coming up as well and should bring the P&P down substantially. Still think SPM will have a bright future, just mentioning some of the negatives at the moment.

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