US Silver (USSIF.PK)

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Wed, Sep 7, 2011 - 12:55am
rowdyboy
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Pujols

...do you have a position in USSIF? If so, what is your take on the upcoming events and the action through end of year?

Thu, Sep 8, 2011 - 12:45am rowdyboy
Pujols
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I do hold a position...US

I do hold a position...US Silver is actually my biggest holding!

As odd as it sounds, it was USSIF's high costs that actually drew me to it. A lot of investors stay away from high cost producers but I would argue that high cost producers are the way to go when the price of silver is rising. These producers offer the most leverage to the rising silver price since their earnings will rise significantly more in percentage terms relative to low cost producers (assuming production is constant, of course). The company's Q1 and Q2 earnings this year are proof of this.

I really like how things are shaping up for the rest of the year:

- Significant accumulation by Sprott, which is never a bad thing

- Getting off the pink sheets and listing on the AMEX should be highly beneficial

- With all the cash they're generating, they should be able to focus more energy on expanding their resource. In previous years, they would basically only drill enough to replenish their reserves since they were always in a cash crunch

- I would expect an update on the status of the Coeur mine later this year. Hopefully it comes online in 2012 as planned

- Also once 2012 rolls around, they will be hedge free. I would be very surprised if they decided to hedge again given Sprott's increasing influence.

Thu, Sep 8, 2011 - 1:46am Pujols
rowdyboy
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Pujols

...actually that doesn't sound odd at all. Your research is very astute, much more than most. I too was drawn by the higher production costs in the early production stages, higher than average ore grades, and the fact that there is plenty of room to lower cost per ounce as they implement their production level increases. They are only utilizing 65% of the production capacity today, so thats why the cost is higher than it should be. When they complete the mine upgrades and hoist up more ore, the cost per ounce will decrease, which as you say will enhance earnings significantly.

I'm after the most leverage to silver as well, so the above point, plus the 85% silver production, and the fact they are not yet listed on the big exchanges, were big factors for me.

That and their second mine coming on line next year. I heard on the call the BOD will meet to approve the mine plan in October. They already have long lead-time gear on order to get a jump start. The CEO said they expect silver production possibly by the end of Q2 2012.

Thanks for your input. I hope to see you around here regularly.

Fri, Sep 9, 2011 - 2:02pm
rowdyboy
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Drilling Results/Resources/Cash Costs

From the quarterly earnings call, the CEO Tom Parker, mentioned they have doubled their drilling efforts from last year because they now have the cash on hand. They now have 4 drills running (3 at Galena and 1 at Coeur). They report their updated Proven and Probable resources every March. Looks like they will have a good resource increase next March due to the double of drilling.

He mentioned that although the main mine, Galena, has produced 180 million ounces historically, there is still plenty of silver. He mentioned exciting drill results at Galena, including the 5200 level with a 2ft vein measuring in at 150 ounces per ton silver.

He also stated that after the BOD approves the Coeur mine plan, they will start development in November, with first silver production 6 months later near end of Q2 2012. He expects the ramp up to the full 50,000 ounces per month will take 15 months. So Coeur's impact for 2012 production is approximately 100,000 ounces. He is being very conservative on stated production numbers.

His goal is to get cash costs per ounce of silver down to $12 from current $15.38. He said the high costs are due to a lot of maintenance repairs that were put off in the past due to low silver prices when they started up.

Sat, Sep 10, 2011 - 12:29am rowdyboy
Pujols
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The company has had its share

The company has had its share of issues over the last year (hedging, missed production targets, etc.) but it has definitely turned the corner. I'm very excited at how things are shaping up in the coming months.

Mon, Sep 19, 2011 - 2:56pm
rowdyboy
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US Silver - Drill Results 9/19/2011

US Silver News Release 9/19/2011 on Drill Results:

https://www.us-silver.com/s/NewsReleases.asp?ReportID=479959&_Type=News-...

DRILLING HIGHLIGHTS

Drilling in 2011 continues U.S. Silver's 2010 trend of identifying new silver veins as well as extensions of existing silver veins at the Galena and Coeur Mines. The best intersection encountered on the Coeur 3400 level was 8.2 feet (2.50 m) of true thickness averaging 25.1 opt (780.70 gpt) Ag and 0.58 % Cu. Since March 4, 2011, the best intersection encountered on the Galena 4000 level was 2.3 feet (0.70 m) of true thickness grading 44.33 opt (1378.82 gpt) Ag and 2.2% Cu. The best intersection on the Galena 5200 level was 10.3 feet (3.14 m) of true thickness grading 26.0 opt (808.69 gpt) Ag and 0.93% Cu.

"Increased drilling activity has continued to provide encouraging results at the Galena and the Coeur mines as we work hard to expand our reserve base from known areas of mineralization. Grades encountered are in excess of what we anticipated and we are confident that the Company will once again expand our reserves this year as we have every year since acquiring the property." stated Tom Parker CEO of US Silver. "The addition of a surface exploration drilling program opens the opportunity to define new discoveries on our extensive land position in a silver rich region that has not been extensively explored."

Mon, Sep 19, 2011 - 3:26pm
rowdyboy
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TSX listing in September

I called IR last week and they told me they are expecting the uplisting from TSX:V to the TSX by the end of September, with the 1 for 5 split shortly thereafter. They expect the AMEX listing later this year.

They also mentioned revamping their web site and branding to reflect their new uplisting status. They are planning a section on their web site with map graphics of the mines, levels, deposits etc, that will make it easier to analyze and understand the drilling and production updates and news releases.

Wed, Sep 21, 2011 - 11:42am rowdyboy
petersburggray
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2ft 150 opt Ag on Galena 5200 level

The 2ft vein of 150 opt Ag found on Galena 5200 level that Tom Parker mentioned on the call was not included in the drill results because it was discovered by the drift. This rich silver ore was immediately put into production so we may possibly see an upside production surprise this quarter.

Wed, Sep 21, 2011 - 6:20pm petersburggray
rowdyboy
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Drill Results

petersburggray wrote:

The 2ft vein of 150 opt Ag found on Galena 5200 level that Tom Parker mentioned on the call was not included in the drill results because it was discovered by the drift. This rich silver ore was immediately put into production so we may possibly see an upside production surprise this quarter.

Thats good news! Where did you source that? Is it published or did you call IR?

Fri, Sep 30, 2011 - 10:58am
petersburggray
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Toronto exchange listing for USA on Monday

USA moves to Toronto exchange on Monday. Reverse split and AMEX listing soon.

Fri, Sep 30, 2011 - 10:59am
petersburggray
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Toronto exchange listing for USA on Monday

USA moves to Toronto exchange on Monday. Reverse split and AMEX listing soon.

Thu, Oct 27, 2011 - 10:06pm
silverseeker
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Good times ahead

I finally decided to create an account after lurking from time to time over here. I've certainly enjoyed turd's silver commentary and analysis, while we've all suffered under the thumb of massive paper shorting in the silver market this year.

US Silver has been a long term hold for me since early spring of 2010, as it was stuck under 20 cents/share. Most of the projected improvements then have now come through, though they had the unfortunate mine accident and death last summer which slowed things down for a time...

The hedge is now almost gone, and their production growth should phase well with a rally in the silver price on tap. I'll be extremely happy when the 1:5 split is complete and the US listing is announced officially so this company can finally gain some wider respect. Sprott is no fool, and sees this coming. Expect the stock to be very well supported as it hits the US exchange.

There's potential for many more monster silver strikes as they now have cash flow to keep the drills turning, and there's many years worth of renovation and restoration ahead as they bring the Caladay project back towards production. This mine has every bit as much potential as the best Mexican projects, jmho.

killing the banker Ponzi one ounce at a time

Fri, Oct 28, 2011 - 10:23am silverseeker
Bsong
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1:5 split

This type of split will do what to the share price? At the split are there any comparable mines e/PS. Thanks

Fri, Oct 28, 2011 - 7:25pm
silverseeker
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After the 1:5 split...

Bsong, there's quite a few posts in this thread highlighting the potential for US Silver; so I won't repeat these excellent posts again here... please scroll through and look closely at the numbers and the details on the drill results.

If the company moves forward with the 1:5 split and a US listing, just as the hedge is expiring; and with Sprott's backing the shares... well; the only remaining variable will be silver continuing higher. Most of US Silver's producing peers are in Mexico and will have nearly twice the share float. My conservative view is that with 68M share float, $40 silver average 2012 price, and 3M ounce production, they could post a dollar a share earnings. IMO, the risks are isolated to the silver price itself, as US Silver is finally set to reveal the potential amongst the Silver Valley's still very rich mine complex.

During the 1990's most of the proven ore in the complex was tapped out as Coeur couldn't afford much development and upkeep. Its the same story with many of the old Mexican mine workings now back in production, but many forget that the Silver Valley hosted some of the richest ore grades in the world. That is the 'blue sky' as US Silver can now afford to keep the drills turning.

killing the banker Ponzi one ounce at a time

Fri, Jun 8, 2012 - 12:04pm
rowdyboy
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US Silver merges with RX Gold & Silver

https://finance.yahoo.com/news/u-silver-rx-gold-silver-222900776.html

Highlights of the Transaction

  • U.S. Silver shareholders to receive 0.670 U.S. Silver & Gold shares per U.S. Silver share, resulting in their effective ownership of approximately 70% of the combined company.
  • RX Gold shareholders to receive 0.109 U.S. Silver & Gold shares per RX Gold share, resulting in their effective ownership of approximately 30% of the combined company.
  • Two - 100% owned U.S. based precious metal operations that deliver immediate cash and one silver re-development asset:
    • Combined production base of 2.7 million1 ounces of silver and 26,5001 ounces of gold
    • Opportunities for significant resource growth, brownfield development and operational and head office synergies
    • Meaningful organic exploration potential at Drumlummon and Silver Valley areas
    • Geographic concentration of assets that allows for near term focus on improving mine planning and execution of cost reduction strategies.
  • Proven board of directors and management team with significant executive experience in senior precious metals companies and the capability to deliver results in tough market conditions.
  • Improved liquidity and capital markets profile, US$25 million in cash and capital markets relationships that position the larger, combined company for further growth through opportunistic and accretive acquisitions.
  • Unanimous recommendations from the boards of both companies that shareholders vote for the Transaction. The board and senior management of each company have agreed to vote in favour of the Transaction. In addition, Sprott Asset Management LP ("Sprott") has signed a lock-up agreement supporting the Transaction. Sprott is the largest shareholder of both companies and currently holds approximately 14% of U.S. Silver shares and 8% of RX Gold shares.
  • A key objective of the combined company will be to exceed 5.0 million ounces of silver production at significantly lower cash costs by 2014.
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