Cars Blog's

Lundin Mining LUN.to LMC is buying back nearly 20 million shares, so recent reversal in trend after capitulation is for real. My last call June 2008 strike 10 was filled at 1.5USD. With more bullish forecast on metals prices Lundins must work hard in order not be bought out at recent  low valuation.

Sterling Mining SRLM.ob SMQ.v has started production from Sunshine mine as it promised. Stock was up 20% on Friday. 

TNR Gold has 25% back in right to northern part of the Los Azules property with two best holes with Cu. Lundins (family behind Lundin Mining LUN.to LMC) are getting closer to new Cu discovery in Argentina: they have invested nealy 10 million CAD into recent placement by Minera Andes MAI.v.

After very bumpy ride we have finally a good news - Lundins has delivered as promised: Aljustrel has produced first concentrate.

Silverstone resources SST.V will get boost as well: silver production from Aljustrel is going to be sold to SST.v at fixed price.

Citi analysts gave a very positive picture on Gold and Metals in light of recent reinflation afforts around the globe.

 

We can expect now completely new crowd to accumulate Lundin Mining - value players. With cash position doubling outstanding debt, P/E=7.09, stock price is below Book now and just screaming for Warren Buffet.

VALUATION MEASURES

Market Cap (intraday)5:
3.71B
Enterprise Value (13-Dec-07)3:
3.60B
Trailing P/E (ttm, intraday):
7.09
Forward P/E (fye 31-Dec-08) 1:
7.95
PEG Ratio (5 yr expected):
N/A
Price/Sales (ttm):
3.56
Price/Book (mrq):
0.93
Enterprise Value/Revenue (ttm)3:
3.45
Enterprise Value/EBITDA (ttm)3:
6.245
FINANCIAL HIGHLIGHTS

Fiscal Year
Fiscal Year Ends:
31-Dec
Most Recent Quarter (mrq):
30-Sep-07
Profitability
Profit Margin (ttm):
38.39%
Operating Margin (ttm):
40.70%
Management Effectiveness
Return on Assets (ttm):
9.14%
Return on Equity (ttm):
18.44%
Income Statement
Revenue (ttm):
1.04B
Revenue Per Share (ttm):
3.493
Qtrly Revenue Growth (yoy):
195.90%
Gross Profit (ttm):
320.64M
EBITDA (ttm):
576.53M
Net Income Avl to Common (ttm):
400.31M
Diluted EPS (ttm):
1.34
Qtrly Earnings Growth (yoy):
300.50%
Balance Sheet
Total Cash (mrq):
226.28M
Total Cash Per Share (mrq):
0.577
Total Debt (mrq):
114.18M
Total Debt/Equity (mrq):
0.029
Current Ratio (mrq):
1.628
Book Value Per Share (mrq):
10.174
Cash Flow Statement
Operating Cash Flow (ttm):
427.06M
Levered Free Cash Flow (ttm):
207.34M

"Silverstone Completes Definition Drilling on the Animas-Refugio Vein, Copala Project, Sinaloa State, MexicoThursday December 13, 7:00 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Dec 13, 2007 -- Silverstone Resources Corp. ("Silverstone") (CDNX:SST.V - News) is pleased to report results from 44 additional drill holes (6,288m HQ core drilling) from the company's Phase IIA drilling on the Copala silver-gold project. Copala is located 60km ENE of Mazatlan, Sinaloa State, Mexico. The assay results are for infill and exploration drilling on the Animas-Refugio vein in the Clemens-El Muerto sector. Drilling has been completed in this sector of the vein and the company will release an independent resource estimate in the 1st quarter of 2008.
Highlights
- SC-07-98 - 5.59 meters grading 1.57 g/t gold and 223 g/t silver
- SC-07-99 - 7.91 meters grading 1.10 g/t gold and 138 g/t silver
- SC-07-103 - 15.53 meters grading 0.44 g/t gold and 62 g/t silver
- SC-07-105 - 7.52 meters grading 0.87 g/t gold and 153 g/t silver
- SC-07-110A - 13.9 meters grading 0.63 g/t gold and 145 g/t silver
- SC-07-125 - 4.0 meters grading 1.67 g/t gold and 214 g/t silver"

Minera Andes announces drilling commences at Los Azules copper project TSX: MAI
NASD-OTCBB: MNEAF
SPOKANE, WA, Dec. 11 /CNW/ - Minera Andes Inc. (TSX: MAI; US OTC: MNEAF)
is pleased to report a planned 10,000 meter, 24 hole drilling program has
commenced on the Los Azules porphyry copper project as part of the 2007-2008
exploration program. The exploration program at Los Azules is designed to
define an inferred resource and provide sufficiently detailed engineering and
technical information to allow the completion of an economic scoping study (a
Preliminary Assessment as defined by NI 43-101) of the property by mid next
year.
Minera Andes is advancing the Los Azules project under an option
agreement (see news release dated November 14, 2007) with Xstrata Copper, one
of the commodity business units within Xstrata plc (London Stock Exchange:
XTA.L and Zurich Stock Exchange: XTRZn.S). The scope and size potential of the
project increased dramatically in 2006 when Minera Andes drilling discovered a
near surface high-grade area of copper mineralization when AZ-06-19
encountered 221 meters of mineralization averaging 1.62 percent copper that
was 200 meters from hole AZ-06-20 containing 173 meters of 1.00 percent
copper. (Both holes are on TNR Gold's property S). Drilling in several holes ended in copper mineralization, including
two holes that bottomed in high-grade copper over 1 percent. This field season
an aggressive program is designed to define the size and scope of the entire
Los Azules copper target.
Allen Ambrose, president of Minera Andes said, "Over the past few field
seasons the drilling at Los Azules has discovered new high-grade copper
mineralization as we gain an understanding of this exciting project. Los
Azules is evolving as a sizeable porphyry copper target, with a high-grade
near-surface copper discovery at its core that is still open at depth."
During the last few years more than half the drilling to define a copper
resource has been completed and drilling will continue this field season over
the known area of leachable (chalcocite) and sulfide (chalcopyrite) copper
mineralization as currently defined. The area to be drilled covers
approximately 2.5 kilometers by 0.9 kilometers within the enriched copper
target currently identified at Los Azules that is about 3.3 kilometers long
and 0.9 kilometers wide. Holes will be drilled at a nominal grid spacing of
200 meters east-west and 400 meters north-south. Where needed fill in holes
will be drilled on the 200 meter north-south grid lines.
Drilling has commenced on the northern half of the mineralized copper
target and will also include infill drilling on the southern half of the
target. The holes will be drilled to a depth of approximately 350 meters. This
drilling will test a known area of leachable (chalcocite) and sulfide
(chalcopyrite) copper mineralization currently defined by 26 drill holes.

http://www.newswire.ca/en/releases/archive/December2007/11/c9929.html

"VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 10, 2007) - TNR Gold Corp. ("TNR") (TSX VENTURE:TNR - News; PINK SHEETS:TRRXF - News) is mobilizing geophysical crews and project equipment to its Eureka Project, a copper-gold prospect located in the Jujuy province of Argentina.
The planned 3D IP survey will be conducted over the historic Eureka mine to determine if the known area of flat lying copper rich beds can be geophysically traced and detected further at depth. Only 70 metres of the 450 metre deep, prospective Eureka formation has been explored to date. If a correlation is present then the survey will be conducted over the initial 8 square km target area previously identified by Minera Penoles, and then further extended to cover the entire property.
EUREKA PROJECT
The 10,192.34 hectare Eureka property is located in the northwest corner of Jujuy Province in northern Argentina, near the border with Bolivia. The property is accessible from the provincial capital of San Salvador de Jujuy, approximately 4 hours to the south, and easy access within the property by a series of gravel roads. For further information please visit our website at http://www.tnrgoldcorp.com/.

UPDATED WEBSITE FOR TNR
TNR has recently completed the redesign of their website which is tailored to the investment community. The site contains extensive information about the Company and TNR invites you to visit the site at www.tnrgoldcorp.com."

There is interview of Minera Andes MAI.v CEO on

he is talking about Los Azules as " 6-10 bil lb Cu target" and new drilling next week on the property. TNR Gold has 25% back in rights for half of the property.

As usual here are only my thoughts - in order to convert them into money you need discipline, desire to learn and action. One small obstacle before you will proclaim yourself next Sir Warren - you need capital. If you are looking for bets to leverage your house upon these ideas are not for you. Never play with your house or even lunch money.

To read further you should buy my reinflation approach: all markets are oversold, managed devaluation of USD is the only cure from complete financial disaster in USA, in order to resolve dead freeze in the credit markets all central banks are pumping liquidity like crazy. Debase of USD will provide solid support for all Hard Assets; Gold and Silver as store of real value will benefit the most. The good news here are that now all governments joined the game after Canada's and Bank of England rate cut. People will realise that game of musical chairs: who will devalue most to protect the export trade will left no single "solid" FIAT currency, inflation is eroding value of currency, any increase in money supply is inflation. Now we are talking about bail out of the housing sector in USA, it means huge moral and financial hazard in form of easy credit one more time. I still think that China stock market will correct 20%-30% from here just to get to the solid uptrend line. But do not confuse yourself with crash in the market and China's economy. It is planed economy: all those bridges, roads, ports and power stations are planed. They will always punish foreigners and even domestic speculators by cooling the market, but will never let their Bull in Infrastructure to stop. It is the only defence against USA losing its World Power status and against poor rural people of China's upraise. If flag ship of "free trade" is talking and making bail out of poor Friends from Wall Street (I hope you are not seriously thinking that somebody is taking care about fox from Alabama, otherwise buy treasuries), what will prevent China from use its 1.5 trillion reserve mostly in paper USD nominated assets? I do not take End of The World approach here: before it will happen you will be able to lose your capital few times, so stay concentrated.

Next most exiting gains will be realised in Junior mining sector, which is extremely oversold now and providing very good Entry point. Junior mining is very small, risky and volatile sector, but it is exactly what you need to make money.

Junior mining cycle is well described in latest Sanu Resources SNU.v presentation visit their site. We need trusted management, initial resource base and their ability to rase money and extend resources. If it is exploration company without any NI 43-101 resources it is more risky play, but pay off in case of discovery will be handsome. To increase your chances go for management with proven track record, exploration on old mine camps closed due to low prices and historical resources, which hopefully could be confirmed. You have double leverage of rising underlining commodity price and increasing resources base. Recent problems with Nova Gold have shown that marginal economic projects will stay marginal, rising cost of building mine and of production will put them again on hold before higher commodity prices. It is a good thing if you do not own this stocks, it means that all that excess supply will never materialise, you can not switch your decision to build mine like traders are changing their mind: it is billions of dollars and 7-10 years of hard work. So this lesson teach us that we should always diversify in this field and go for political risk in order to reduce technical risk: not so many discoveries are made, not every one of them will become a mine. My own track record with Tenke Mining TNK.to is providing support for my educational efforts. I was blessed to accumulate starting from 0.9CAD and this last April it was bought out by Lundin Mining LUN.to LMC for 25CAD. Now I think Lundin Mining LUN.to LMC is presenting itself very interesting take over play. I will mention few companies here, disclosure: I have positions in all of them. Search my blog for more information availible. Almost all of the mentioned companies updated their presentation, study before making any move.

TNR Gold TNR.v - very risky long term hold position - call on Gold and Commodities upside without time decay: no resources yet other then historical, but recent developments are very interesting. Management has changed strategy and will explore most promising properties in Argentina by themselves: namely El Salto is under drill now, Eureka and El Tapau will be early in next year. Los Azules property is going into feasibility stage and operator Minera Andes MAI.v has started new drilling programme. Now they have found serious money supporting their new strategy, more institutions are coming on board via Pasific International. Management is buying themselves and new website is showing serious investment relations approach. Recent spike and going into accumulation stage is presenting very good Entry point and was due to unfolding 5mil shares position of Tenke Mining which was transfered into Lunding Mining. Lundin Mining has position in Suramina Resources SAX.to which is concentrating their efforts on Cerro Cuadrado project, more below. Hari Varshney has came on Board of TNR Gold, his family is behind Mantle Resources MTS.v backed by Lundins. Needless to say now after all words sad drill results will matter and mineralisation hit at El Salto could change the stock overnight.

Lundin Mining LUN.to LMC - take over play in basic metals sector. Very good Entry point now with Zinc, Lead and Copper under pressure due to world wide recession fears. Recent and coming Fed rate cuts will propel commodities prices further, resolving of Congo Tenke Fungurume will catalyst new Bull Leg Up here, new mine Aljustrel is coming into bottom line as well. It is best commodity mix in the Old world: Cu, Zn, Pb, Ni in Europe with huge calls on Cu-Co in Congo and Zn in Russia.

Silverstone Resources SST.v - new Silver Wheaton SLW in the making. Just recently PP of 50 million was done at 2.9 CAD almost overnight. Now you can buy below Big Guys who are trying not to miss second chance. Lundin Mining and Capstone Mining CS.to are holding 38% of the company between themselves. Call on Silver without time decay. Aljustrel put into production by Lundin Mining will ignite the new run and market is waiting what recent financing was made for: new silver stream is in the making for sure and this recent bearishness is the best time to strike a good deal.

Sterling Mining SRLM.ob SMQ.v - famous Sunshine mine is coming into production again. Impressive resources are now confirmed by NI 43-101 and management promise to start the mine by Xmas. It did not came without the price: few recent financings put Fully Diluted float into over 50 mil shares and put stock under pressure - it is now very good Entry point to play this metamorphose into Silver producing company. Watch the video on site.

Suramina Resources SAX.to - another Lindin play on South America this time. The company took all SA assets after Lundin Mining take over of Tenke Mining. Recently resources at Jose Maria were increased. Company now is very active on the border of Argentina and Chile on new Cerro Cuadrado discovery silver-lead-zinc. Vicuna is a copper-gold porphyry and third major project at the moment. Go to http://www.caseyresearch.com/freeResearch.php

register for Exploration league and read interview with CEO Patricio Jones. The guy was behind Bajo de la Alumbrera and Veladero discovery and development. He is talking about Argentina and "Cerro Cuadrado is going to be a mine"

Avino Silver and Gold Mines ASM.v - Regarding AVINO Silver ASM.v I am still holding the position, this is the long shot: I am dissapointed with their progress, looks like they need new blood to get the full potential. Now at this level only their infrastructure cost more then market cap: all resources are "free". Problem here is that they never reported new resource estimations: results are good, grade is OK, but we need resources and final push out in this company. General for Silver December will be ignited month in new Leg up according to my charts.

Continuum Resources CNU.v - has took a hit recently when they was not able to establish J/V on their optioned property Natividad in Mexico. Now stock is traded at level below latest PP and only value in San Jose property where Fortuna Silver is operator accounted for. Among shareholders are Sprott with 19%, Agnico-Eagle with 15.3% and Fortuna Silver with 8%. Any positive change in Natividad status will push stock higher. Market is not giving any value to their other properties in Mexico.

Sunridge Gold SGC.v - is a Lundin Mining strategic investment in Eritrea Africa. Lundin Mining owns 16% of the company. Just recently company issued encouraging "Sunridge Gold Announces Indicated Resource Estimate For Emba Derho Vms Deposit"

"Sunridge Gold Corp. (SGC/TSX.V) announces an initial NI 43-101 compliant independent resource estimate for the Emba Derho zinc-copper-gold volcanogenic massive sulphide (VMS) deposit, on its 100% owned Asmara Project, Eritrea. This estimate is almost entirely in the "Indicated" category, with the total combined Indicated resources in the primary zinc and copper zones containing 1.7 billion pounds of zinc, 735 million pounds of copper, 402,000 ounces of gold and 15 million ounces of silver. The deposit is still open, particularly to the northwest. The estimate meets the Company's stated objectives in terms of size, average grade and the potential for a large open-pit operation."

Mantle resources MTS.v - another Lundin Mining strategic investment with just under 10% participation.

“Mantle Resources Inc.’s Akie deposit is a sedimentary exhalative (“SEDEX”) zinc-lead-silver deposit formed during one of the great ages of zinc mineralization. Another SEDEX zinc-lead-silver deposit of the same age that formed under very similar geological conditions to Akie is the 'Giant' Red Dog deposit, operated by Teck-Cominco and located in the Brooks Range of northern Alaska. Red Dog is the largest zinc mine in the world and is one of the largest accumulations of zinc+lead mineralization – more than 32 Mt contained zinc+lead metal.”
- Neil O’ Brien, Senior Vice-President of Exploration and Business Development, Lundin Mining Corp.

Lawrence Roulstone:

Reinflation is devaluing currencies, Hard Things are going up in value, all excess in Supply will never materialise when prices are going down. Look at Nova Gold they have to put project on hold because of escalating cost. Almost all projects accounted for Supply increase are running late and with CAPEX increased. Reinflation is hitting Miners as well, they will push their prices higher as cost of mine development and production rises.

Orchestrated rate cuts by Canada, Bank of England and coming rate cut by FED means only one thing: more and more liquidity. Where all these money will end up? Most part will come as payment for goods in China and Oil producing states, they will buy commodities to build infrastructure, silver to produce electronics, gold and silver to protect their wealth from FIAT currencies going down in value with great REINFLATION CYCLE.

Thats what we have been waiting for, Xmas present...

"FCX assured by DRC that huge Tenke Fungurume copper/cobalt project is secure
The President of the DRC has given Freeport-McMoRan’s Tenke Fungurume copper/cobalt project the go-ahead, personally reassuring the company that Tenke’s contract will not be terminated.Author: Steve JamesPosted: Thursday , 06 Dec 2007
NEW YORK (Reuters) -
Congo President Joseph Kabila personally assured Freeport-McMoRan Copper & Gold that the company's huge copper/cobalt mining project in the country will not be canceled, its chief executive said on Wednesday."

Stock is Daily Buy on the chart.

http://www.mineweb.com/mineweb/view/mineweb/en/page36?oid=41469&sn=Detail

"TNR Gold Corp., trading on the TSX Venture Exchange under the symbol TNR, is a diversified junior Canadian mineral exploration company with a specific focus on exploring for precious and base metals in North and South America.TNR's goals are:
To continue to foster work on its large portfolio of precious and base metal projects in Argentina and Alaska
To identify new high-potential projects
To develop strategic partnerships with mid-tier and major companies which will enable the advanced development of its asset base
To establish long-term cash flow through royalty interests and project development"

Looks pretty nice to me: all information is in one place. Stock is bottoming out, insiders are buying, drilling is underway: any positive news from El Salto will launch this rocket.