Silvermex Resources (SLX.TO)

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Mon, Oct 3, 2011 - 11:08pm
T
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Finding a bottom

Last year,starting in late 2009,and all spring and summer last year Silvermex 'established' a base (if that means anything ) of 'support' (if that means anything) at a zone between 35 and 20 cents. I'm placing a stink bid to buy at .27

I could just as well place it at .22...doesnt matter. I have done ok so far trading thru technical analysis,at times like this, when support levels and fibs and trendlines get hit.

Is there anything wrong with silvermex? did a mine collapse or something? did they suffer an attack from drug war overlords, embezzlement from executives? Loss of mining permits? government nationalization? Anything ?? aside from the silver paper price manipulation rigged game.....

Whats the purpose of a stink bid? If technical analysis still means anything now (another good topic for debate)

this is a time to place a stink bid to buy around 25 or 30 cents.

Just a side note that is related.....The S+P , as bad as it looks dropping ,plunging down thru the range, to make a lower close....in Elliott wave structure analysis....alll this is is the onset ,continuation of the 'Wave 5' ...w ith todays move we confirm the completion of the choppy wave 4 and now wave 5 is ongoing and has a target at the 1040-1060 area. not too much more bloodshed. From there we should get at least a bounce rally (ABC structure) back to retest the 1200 area.

and to whatever extent the miner stocks still move alongside the general market (they still do) then if we get a support zone holding at the 1040 area (its a big critical support zone) the S+P should bounce and the miners which hit their respective bottom should also do the same.

Silvermex looks to be precisely setting up to hit bottom and bounce at that big support line around 26 cents.

I'll buy some more with the stink bid at ..... anything around .25-27 cents,is good enough.

4000 shares at 25 cents .... comes to 1 thousand bucks. I'll sell half at 50 cents and the rest is free. a small wager ,its a totally technical analysis trade.,nothing more than that.

I'll watch the S+P bottom at 1050 area as my signal.

Wed, Oct 5, 2011 - 8:54pm
mouser
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Nice bounce back on SLX, and

Nice bounce back on SLX, and most other miners for that matter. SLX finished back to .43 up over 16% on the day.

Thu, Oct 6, 2011 - 6:38am mouser
bobby
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mouser wrote: Nice bounce

mouser wrote:

Nice bounce back on SLX, and most other miners for that matter. SLX finished back to .43 up over 16% on the day.

Yeah, I'm happy too. Now, if they would be so kind as to pick this silver producer (yes, they're producing right now, making sales right now, drilling right now) up off its ass and let the price run, please. We get it. You control it. Now control the damn thing back to a dollar!

Fri, Oct 7, 2011 - 10:10am
mouser
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Dont know who the sellers were

Seems at least one big holder of slx DECIDED to get out and drove the price down under .40. I suspect they will be lamenting giving in to panic. SLX was a great buy down there, just based on ozs in ground.

Sat, Nov 5, 2011 - 10:39am
infinite_easing
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drill results

SLX issued a drill update the last couple days...anyone had a chance to break that down? My quick skim lead me to believe there were some decent silver numbers but no tonnage estimates; and that the firm will continue exploratory work at Guiterra.

Also, is there a good current analysis available on their financial condition? They have been in a good cash position for most of the last year (recall something around $20-25 M), but not clear if current production sales exceed the burn rate. Any thoughts more than welcome.

Wed, Nov 9, 2011 - 11:14am
Einherjar
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Silvermex's La Guitarra Mine

Silvermex's La Guitarra Mine Achieves Full Capacity of Production Ahead of Schedule

VANCOUVER, BRITISH COLUMBIA, Nov 09, 2011 (MARKETWIRE via COMTEX) -- Silvermex Resources Inc. ("Silvermex") CA:SLX -2.00% announces that full capacity of production has been reached at its La Guitarra mine, in the Temascaltepec mining district of Mexico, located 130 km southwest of Mexico City in the State of Mexico. Production for the third quarter of 2011 was 24,820 tonnes, a 53% increase from Q2 2011.

In July, the mill operating schedule increased from four days to seven days a week and by the end of September had reached full capacity at an average of 320 tons per day ("TPD"). Full capacity is expected to be reflected in full in Q4 2011 production and financial results.

"We are very pleased with the progress and results to-date from the La Guitarra mine," stated Michael Callahan, President of Silvermex. "2011 has been a transformative year at the operation. In less than one year, we doubled the mill throughput that the mine has produced over the past several years and achieved full capacity ahead of schedule. This shows that our commitment to increasing productivity and efficiencies at the mine has paid off and that we are delivering on the objectives we have set for this year."

Second Quarter Highlights:

-- The mine produced 24,820 tonnes of ore, containing 129,384 ounces of silver and 991 ounces of gold. -- Production grades equalled 181 g/t Ag and 1.44 g/t Au. -- Recoveries to concentrate averaged 89% for silver and 84.5% for gold. -- Full capacity of the mill of 320 TPD was achieved ahead of schedule.

Production Details:

--------------------------------------------------------- --------------------------------------------------------- Three Months Ended Three Months Ended Three Months Ended September 30, 2011 June 30, 2011 March 31, 2011 ---------------------------------------------------------------------------- Tonnes ore milled 24,820 16,164 16,359 ---------------------------------------------------------------------------- Tonnes ore milled per day 310 178 182 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Silver grade (g/t) 181 174 191 ---------------------------------------------------------------------------- Gold grade (g/t) 1.4 2.4 2.5 ---------------------------------------------------------------------------- Silver recovery (%) 89.0% 90.0% 92.7% ---------------------------------------------------------------------------- Gold recovery (%) 84.5% 88.5% 88.8% ---------------------------------------------------------------------------- Silver produced (ounces) 129,384 81,400 93,063 ---------------------------------------------------------------------------- Gold produced (ounces) 991 1,111 1,182 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

Production cost information will be provided in conjunction with Q3 2011 financial results expected to be released by mid-November 2011.

Regarding the Q3 2011 production results, Duane Nelson, CEO of Silvermex, stated: "Now that we have the mill operating at full capacity we are able to focus our attention on increasing production. Our primary focus is to continue the advanced exploration and in-fill drilling on the identified potential production centers within close proximity to the mill. We are confident that the district will provide Silvermex with an attractive production growth profile due to the potential of multiple satellite production centers similar to the current La Guitarra mine."

Wed, Nov 9, 2011 - 4:33pm
T
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Great news....and like all the miners

Silvermex got slammed down 4% today.

just another day at the office......

Watch the resistance in Silvermex at the 60 cent area.

Thu, Nov 10, 2011 - 3:51pm T
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Silvermex - SLX.t on PSJ

https://pennystockjournal.blogspot.com/2010/12/silvermex-resources-ltd-slxv.html

This co is tough to get a handle on, by rights the MO should be positive by now yet it ain't. Its tough to get any kind of meaningful response outta IR and that annoys this cowboy greatly. Shareholders are paying the freight 100%, so that IR function had better be on the freakin ball. Right now I have doubts that stakeholders are getting any return on that score.

Thu, Nov 10, 2011 - 8:13pm Stoxxman
TheGoodDoctor
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Well the stock is down about

Well the stock is down about 33% from when I picked up a few shares. That being said you have other minerals here that make it worth putting some spec money into it. Not only that but they have a pretty good chunk of silver. That indium and gallium are some rare stuff. Do not underestimate this.

Certainly a longer term play but that is why we buy at these levels for the future payoff. Currently 4 oz. silver per share, 6 oz. silver equivalent per share. So, that is good for me. That doesn't even include the Chile gold/silver/copper project.

People might be worried about the Bolivian mine but there is quite a chunk of ownership and Sprott is an owner too. I'm not worried and would like to get more.

https://www.newscientist.com/data/images/archive/2605/26051202.jpg

From the latest presser:

https://www.newscientist.com/data/images/archive/2605/26051202.jpg

In addition to the updated PEA, the Company announced an updated resource estimate for the Malku Khota project expanding Measured and Indicated resources by 60% to 230 million ounces of silver with an additional Inferred resource of 140 million ounces of silver. In addition to the increased silver content, the updated resource estimate also included a Measured and Indicated resource of 1,481 tonnes of indium and 1,082 tonnes of gallium, plus 935 tonnes of indium and 1,001 tonnes of gallium in the Inferred category.

“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.” Norm Franz
Thu, Nov 10, 2011 - 8:40pm TheGoodDoctor
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OMG. Well I had the price

OMG. Well I had the price right but all my other info was from South American Silver. So, if you are looking for another good silver company.......

Doh!

“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.” Norm Franz
Mon, Nov 14, 2011 - 2:41pm
Einherjar
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SLX taking off today in

SLX taking off today in anticipation of good numbers tomorrow or later this week...

Mon, Nov 14, 2011 - 3:13pm
TheGoodDoctor
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Let's hope so.

Let's hope so.

“Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves.” Norm Franz
Mon, Nov 14, 2011 - 4:57pm Einherjar
bobby
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silvermex

do they report numbers this week?

it should take a good rip up from the looks of the recent news, full production ahead of schedule and all that

I'm thinking this could be on a ramp to 2.00 soon

Mon, Nov 14, 2011 - 10:26pm
mouser
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Market liked the report it appears

Altho really not a profit as far as EPS , that would be comparable to RVM and other undervlaued miners, b ut it was still a good Q and the company in great shape. No dilution needed in the near future.

Silvermex Resources loses $4.9-million in Q3

2011-11-14 16:49 ET - News Release

Mr. Duane Nelson reports

SILVERMEX RESOURCES INCREASES PRODUCTION AND REVENUES IN THIRD QUARTER OF 2011

Silvermex Resources Inc. ("Silvermex") (TSX:SLX) reported today its unaudited financial results for the quarter ended September 30, 2011. The La Guitarra Mine, located in the Temascaltepec mining district of Mexico, has achieved the maximum capacity of its current mill design. Having achieved its objective for 2011 of reaching full mill capacity, the Company will now focus on conducting advanced exploration programs with the objective of expanding production.

Highlights from the quarter include:

  • -- Full capacity of the La Guitarra mill was achieved ahead of schedule. The mill is now running at a rate of 320 tonnes per day.
  • -- Positive cash flow of $649,000 was achieved.
  • -- Adjusted net income of $2.6 million was achieved. -- Gross profits of $1.7 million were achieved on revenues of $5.1 million.
  • -- Positive adjusted EBITDA of $1.4 million. -- The La Guitarra mine produced 129,384 ounces of silver and 991 ounces of gold.
  • -- Average realized silver price was US$37.67 per ounce and average realized gold price was US$1,756.00.

The Company achieved a gross profit of $1.7 million for the three months ended September 30, 2011, on sales of gold and silver of $5.1 million compared with a gross loss of $0.3 million, for the comparative 2010 period, on sales of gold and silver of $0.3 million.

Revenue increased for the three months ended September 30, 2011 compared with the three months ended June 30, 2011 due to at 58.9% increase in production and a 106.6% increase in ounces sold.

The Company incurred a net loss of $4.9 million for the three month period ended September 30, 2011 compared with a net loss of $0.5 million for the same period in 2010.

The increase in net loss in the third quarter of 2011 is mainly attributable to the $7.2 million write down of the San Marcial property. After completing an internal evaluation of San Marcial, Silvermex has determined that due to a number of factors, including the terms of the option agreement with Silver Standard Resource Inc. ("Silver Standard") the property does not, at this time, warrant further development as a standalone project. Although management has written-down the property, the terms of the option agreement are in the process of being renegotiated and may retain the property if the renegotiated terms are acceptable. Adjusted net income, which excludes stock based compensation and the write down of the mineral property interest, for the three months ended September 30, 2011 was $2.6 million compared to adjusted losses of the same period in 2010 of $0.3 million.

For the third quarter, cash generated was $0.6 million compared with cash used of $0.2 million for the same period in 2010. At September 30, 2011, the Company had cash on hand of $14.0 million and short term investments of $7.4 million, current assets of $28.6 million and working capital of $24.6 million. The Company believes that the current cash on hand and short term investments are sufficient to meet its cash requirements for the consolidated entity for the next 12 months.

"We are very pleased with the financial performance of the operation," stated Michael Callahan, Silvermex's President. "Our objectives of improving efficiency, increasing productivity and building a solid team are providing tremendous results. Attaining full production will allow us to maximize cash flow from La Guitarra and provide the platform to grow in the district. Our underground drilling has shown very positive results, as we have announced thus far, and our surface drill program is well underway. We are excited about the potential we have to grow the Temascaltepec district into a multi-million ounce silver producer and create significant value for our company."

Wed, Nov 30, 2011 - 10:19pm
mouser
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started scaling back into Silvermex here

Began buying back into SLX at .48 and .47 this week, and anywhere under .50 is a buy imo, as i believe we are at the start of a rally in the miners shares.

SLX current share price of .47 gives them a market value of about 115 million $, well below the levels they were trading at right after the merger with Genco. There has been a concentrated short position in SLX, at times a good % of it naked shorted.

I suspect these minions will start to cover in, on any big move in the silver miners and SLX likley one of the better values out there based on resource and reserves proven with over 200 million ozs of silver equiv ( about a million ozs gold as by product).

Management for the most part is a seasoned bunch from Silver Standard and Hecla, altho the CEO Duane Nelson not really a mining background. However , as we know, promotion appears to be half the game at least in the markets.

With the latest drill results from Coloso , i think SLX will start to move ahead with expansion of the underground mining. Coloso actually had the highest grades in reserves from the feasability done by Genco way back when ( substantially higher , nearly twice as rich). Recent drilling will confirm that and more will be moved into reserves and we will likely see a satellite mine, maybe an additional 300 per tonne day come from Coloso. ( just speculation on my part)

La Guitarra and Temascaltepec Silver Gold Mining District Underground Reserves by Area

Area

tonnes
('000)

Ag
g/t

Au
g/t

eAg
g/t

Oz Ag

Oz Au

Oz eAg

Guitarra

1,063

188

1.80

289

6,415,000

61,300

9,855,000

Nazareno

240

146

0.79

190

1,122,000

6,100

1,462,000

Coloso

373

335

2.65

483

4,010,000

31,700

5,780,000

Mina de Agua

509

191

0.22

203

3,115,000

3,600

3,312,000

Total Reserves Underground

2,185

209

1.46

291

14,662,000

102,700

20,409,000

The market should begin to anticipate an announcement of planned production increase with good economics.

Going long here and holding.

Thu, Dec 1, 2011 - 2:02am
T
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nice

Nice work ,Mouser, thanks.

T

Sun, Jan 1, 2012 - 11:25pm infinite_easing
infinite_easing
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its getting time

I am thinking the first half could be kind to SLX...they should have a great first half, and with a swing up in silver price, they will get some attention.

Thu, Jan 12, 2012 - 4:58pm
Einherjar
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New presentation 2012 2012

New presentation 2012

2012 focus on production expansion

Wed, Jan 25, 2012 - 2:49pm
Einherjar
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11-14-2011 Dear

11-14-2011 Dear Speculators, Today’s pick is a chance to get in on a new emerging silver producer in Mexico, before the market realizes what’s going on. Prices are down, due to skepticism (rightly) assigned to past management, but there’s a new team running the mine, getting good results, and the stage is set for a turnaround in more ways than one.


Louis James
Senior Metals Strategist
Casey Research
Silvermex Resources
HM: Ag, Au
V.SLX, OB.GGCRF, www.silvermexresources.com
Price Share: C .465 MCap: C$110.5 million On: 11/11/11
Shares SO: 237.7 million FD: 299.1 million As of: 8/31/11
Warrants UnEx: 48.7 million C .32 - C
.90
Exp: 2/12/12 - 12/16/13
Options Open: 12.6 million Wt. Avg. C .58 Exp: Avg. 3.0 years
Cash C$16.5 million Burn: C$400K/mo +CapEx C$1.3M/mo As of: 6/30/2011
BUY FIRST TRANCHE
—The primary virtue of Silvermex is that it’s much cheaper than our other silver producers. If you wish you could have bought a company like Endeavour, Fortuna, or First Majestic when they had the MCaps of junior explorers, this could be your chance to get in on that level. By the Ps…

People

Silvermex is run by several ex-Hecla Mining people with proven track records of building mines. SLX’s chairman is Arthur Brown, past chairman of Hecla, and the president is Mike Callahan, past VP for corporate development at Hecla. The GM for Mexico is Clyde Peppin, past project manager and chief engineer for Hecla, the VP for exploration is Robert Fraser, past VP exploration for Hecla. Hecla has its issues today, but there’s no doubt that these people helped build successful mining operations, and our usual due diligence on them, individually, has turned up nothing but endorsements. We also note the presence of Ken McNaughton on the board, currently chief exploration officer at Bob Quartermain’s Pretium Resources and formerly with Silver Standard. This is a team with a great pedigree, and, critically, getting results on the ground.

Property

SLX has five prospective properties in Mexico: Penasco Quemado, Lobos, Rosario, La Frazada and La Guitarra. The first two are in northwest Mexico, where we’d have concerns about security, but these are not the company’s top priorities nor where we expect near-term growth to come from. The main asset is the producing La Guitarra silver mine in southern Mexico, which struggled under previous management but is now cranking out operating profits. La Guitarra is a historic Mexican mine, with operations going back to the 1550s. The current configuration is a typical 320-tonne-per-day (tpd) flotation circuit. Past reported 17.7 million ounces of open pit reserves averaging 165 g/t AgEq and P&P underground mining reserves (January 2010) tallied 20.4 million ounces of silver-equivalent at an average grade of 291 g/t AgEq (the “equivalent” is gold). That’s excellent grade, but the veins are narrow, and previous operators had a tough time keeping the mill fed. New management is reinterpreting all old data and plans to have new, more conservative 43-101-compliant resources and reserves to report to the market soon. Previously, the mill was operating at about 50% of capacity. The new team appears to have fixed this, spending $13.4 million at La Guitarra this year, upgrading equipment, drilling off more mine reserves and resources, and developing more stopes. Head grade for the first half of 2011 was reported at 281 g/t AgEq, which is very rich in today’s silver price environment. Last week, SLX reported that they have brought the mill up to 100% of capacity, which should be reflected in Q411 financial results. The mill was already up to about 85% of capacity in Q3 and achieving higher metal recoveries. With Q3 financial results due out soon and the mine already producing operating profits in Q2, we expect there to be good news. To keep production up and growing, management say they have increased their exploration team from six to 25 people. Recent exploration efforts have discovered previously unknown veins parallel to the old ones – they’re narrow, but with mine development already in place, should be relatively low-cost to produce. Best drill intercepts from the most recent press release included 1.71 g/t gold and 509.1 g/t silver over 2.0 meters, 2.32 g/t gold and 476.1 g/t silver over 1.1 meters, and 1.09 g/t gold and 406.2 g/t silver over 2.2 meters. More good news: La Guitarra is one of four past-producing vein systems along a 15-kilometer trend held entirely by Silvermex, so there is plenty of exploration upside that can quickly be turned into production, either by increasing the capacity of the existing mill or by building another (permitting should be relatively straightforward). Drilling to get the next areas ready for production is already underway. Plus, the company plans to move towards production at the past-producing Rosario mine in west-central Mexico as quickly as possible. This is a recently past-producing mine, with water, power, tailings, surface rights, mining equipment and a 600 tpd mill already in place. It’s hard to say just what the scope of the opportunity here is, but Grupo Mexico, the major Mexican mining company that operated the mine in the 1990s, reported leaving approximately 900,000 tonnes grading 0.8 g/t gold, 192 g/t silver, 2.08% lead, 3.37% zinc, and 0.18% copper behind. That’s not a bad start. Silvermex budgeted $1.6 million this year to getting a grip on that, and we should see results soon. All of this and more is very bullish, but we have to caution that we have not been on site yet to verify. That said, given the nature of the People involved – and those who’ve vouched for them – we’re inclined to believe the story. Once the company publishes official figures and the impact of these improvements start showing up in the company’s financial statements, this story should be getting a lot more notice.

Politics

We like Mexico, politically, as a mining jurisdiction – the place has steadfastly resisted the hard left turns it was known for in the past and that have plagued countries farther south. The key assets are in quieter parts of Mexico, and the company is already operating without major political problems, so we see no red flags at present.

Push

Plenty of push here:
  • More operational improvement milestones.
  • Improving financial results, probably including greatly increased operating cash flow for Q3 and possibly, just possibly, net income for Q411. If not this quarter, we do expect net income in Q112, unless management seriously drops the ball. Assuming SLX delivers, we expect a revaluation by the market soon.
  • More high-grade drill results.
  • New discoveries beyond La Guitarra.
  • Farther ahead, expansion of production well above the current 320 tpd.

Paper & Phinancing

The paper situation is this company’s weakest P. We generally don’t like seeing that much paper issued and outstanding; however, in this case, the bloat is largely due to missteps by previous management and the merger of Silvermex and Genco. On the bright side, the last financing was almost a year ago, so all paper is free trading – and largely out of the money, so all interested parties benefit with us as new shareholders, seeing the share price rise. What matters now is that the company has good cash flow and can grow without having to go back to the trough. For example, management say they already have a bank of flotation cells on site for increasing the capacity of the existing plant – other elements like this make for low capex requirements for significant growth. The bottom line here is the MCap; it’s low for a growing producer on the cusp of profitability.

Price

The current share price makes for a good entry point. Any good news from this company along the lines above could reverse the current slide and start the stock on an upward trajectory. On the other hand, unless there’s very good news that gets that trend reversed, tax-loss selling in the weeks ahead is likely to take the share price lower before it heads up. So we do recommend a first tranche now, and then to look for second-tranche opportunities just ahead. We wouldn’t chase it, but we wouldn’t dally, either, as there is important news on the way.
Thu, Jan 26, 2012 - 12:35am
T
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Oh, now thats fantastic timing

This... report looks so professional and I'm sure it must have some value.... (wait ,I see it is old , from 2 months ago....and ... I see its from Casey, the very newsletter I love...... which was WHY I went and bought some silvermex back then , and cant wait to sell it if I can break even.... here we are today with the market, the entire gold and silver and miner sector went soaring today.....and there were maybe only a small few miners that went down or stayed flat...... not a good sign on a day like today, as Eric O said, and I agree....

and one of the dogs that stayed down today ..... was this very Silvermex.

Can you give us a follow up report as to why Silvermex stayed a dog today . ?

maybe it will blast up tomorrow ? like a delayed fuse or something.....

I like casey research and Louis James work.... but they have one or two dogs and Silvermex has been barkin all last year and today was still sleeping.