Byron King of Outstanding Investments fame believes Aumn has 570 to 930 millio oz of silver waiting to be uncovered plus gold, zinc, lead and copper. He suggests the company will be puchased before long although the company will be very profitable within a few years. No joke, the company and management are well regarded by King...... and he has an excellent record and pedegrie.
Did Byron King write that AUMN has 570 to 930 millio oz of silver waiting? What is your source?
Indeed that would be easy possible, given that:
AUMN itself only claims to have upside potential to as much as 399.2 M AgEq oz. for Velardeña, only (!)
So this excludes: San Diego (JV), El Quevar, Zacatecas (30 Km of veins containing silver-gold mineralization) and last but not least approximately 464,000 hectares remaining exploration properties in Argentina, Mexico and Chile. Not unlikely that this sums up to a total of 570 M AgEq oz. which would translate into 13 oz AgEq per share.
Source: "A June 2012 NI 43-101 technical report showed
27.6M AgEq oz. in the Measured & Indicated category and 32.3M AgEq oz. in the Inferred category, in addition to a potential resource range of 85.7M to 339.3M AgEq oz. (all figures exclude
the San Diego property)" and the other data availably on their homepage.
This is a very strong possibility of the acquisition but at what price is anyones guess, why would Goldcorp pay a 3 to 5X premium for a company trading this poorly? However, if you look at the growth strategy for Goldcorp from 2013 to 2017 (70%) production and output growth they do not have enough production capacity pipeline to cover this projection. So, the most likely strategy will be to buy well run smaller plants that fit the company operating culture of high quality mines with good environmental records and in the low political risk countires. By doing this it keeps the legal costs of operation way down. If you map where those locations are you see they are in latin america, Argentina, chili, mexico, Dominican, and Canada. Aumn maps very well to this geographic foot print so economies of scale could be achieved very well because the cost and complexities of doing business in central and latin america is a costly and difficult process and if you are already there and operating the transition is pretty easy.
Lastly, i can not explain my full process how i get my data however the movement of key goldcorp employees might suggest they are doing their due diligence. These are not locations you take your family to for exotic vacation. I do own a very small amount of aumn not enough to amount to much. This is just a very humble opinion as i am learning the stock market trends and developing a software package to data mine trends from public information.
Good luck and lets see if AUMN gets bought by GG this year, not if but at what price.