SETAC Continues to Drive Growth

Zacks Small Cap Research
July 9, 2013

By Ken Nagy, CFA

On July 8, 2013, Silicom Ltd (NasdaqGM:SILC), the provider of high-performance server and appliances networking solutions, reported that a top-tier networking security company has standardized on additional Silicom modules for both the current and an additional appliance product line.

The additional Silicom modules, as well as the 10Gbps modules that the network security giant has been using over the past two years in one of its appliance product lines, are expected to ramp up revenues from the customer to approximately $4 million per year.

The 10Gbps and 1Gbps modules with and without bypass in copper and fiber that are being used in the two of the networking security company’s appliance product lines were developed as part of it Silicom’s SETAC program.

Silicom’s cost competitive SETAC (Server To Appliance Converter) product family, offers a distinctive growth opportunity that enables the Company to offer a full network appliance platform solution.  This new product line permits Silicom to address new market segments as well as obtain nearly unlimited potential with the its existing customer base.

Furthermore, the customer is currently considering working with Silicom on additional products, including intelligent solutions and additional modules. Management fully expects that their use of Silicom solutions will continue to increase, representing a reliable and continuously growing driver of revenue in the years to come.

Silicom’s ongoing success is happening on all fronts and growth is coming from its existing customers, its increasingly diversified product line and its expanding customer base across all target markets. With strong demand for all of the Company’s product line, exciting strategic wins with some of the industry’s most important players and an extensive pipeline of potential sales, Silicom is well positioned to outgrow the industry.

A copy of the most recent research report can be downloaded here >> 
 Silicom Report

Please visit for additional information on our research and coverage universe, and Subscribe to receive our articles and reports emailed directly to you each morning.Petaquilla Minerals (Toronto:PTQ.TO) and (OTC BB:PTQMF) is a junior gold production and exploration company with a producing mine in Panamá and numerous mineral exploration properties in Panamá, Spain and Portugal. The Molejón gold project in north-central Panamá achieved commercial production in January 2010. Through the third fiscal quarter, the company has poured 216,100 ounces of gold, leaving approximately 494,398 ounces yet to be monetized from the proven and probable reserve delineated in the most recent 43-101 compliant mineral reserve report. Average production over the last two years has been slightly above 18,000 gold equivalent ounces per quarter. With the addition of on/off leach pads, which are expected to be commissioned during fiscal 2014, incremental production should be realized.

Petaquilla successfully asserted its rights over claims in the area of the Cobre Panamá copper project being advanced by First Quantum Minerals. In consideration for land access, Petaquilla received (through PDI) a $75 million contract for aggregate procurement, $13 million for 10 years of land lease, $13.3 million waiver of royalties, etc., all of which total approximately $150 million. NI 43-101 compliant estimates for the Botija Abajo and Palmilla deposits were released in the early 2013, which contribute $26.9 million (or $0.10 per diluted share) to the NPV to our valuation model.

In Spain, Petaquilla Minerals owns a 100% interest in Lomero-Poyatos through the acquisition of Iberian Resources. Based on historical drilling results, a NI 43-101 compliant Technical Report (dated May 21, 2012) estimates that the inferred mineral resource in an underground mining scenario contains 830,000 ounces Au and 17.3 ounces Ag. Petaquilla completed the first phase of twin drilling of historical holes and is
 constructing a mine access ramp to allow for additional twin drilling, which should contribute to upgrading the existing NI 43-101-compliant Inferred resource estimate to the Measured and Indicated categories.

In Portugal, two rigs are turning at the Jales-Gralheira concession located in Vila Real District
 of northern Portugal, approximately 330 kilometers north-northeast of Lisbon. The concession encompasses 1,540 hectares and contains an area of historic mining operations. In modern times, the Jales mine has produced 830,000 ounces of gold and almost 3 million ounces of silver between 1933 and 1992. The first mining operations at Jales-Gralheira date back to Roman times in the 1st and 2nd centuries A.D. Petaquilla is advancing studies toward an updated NI 43-101 compliant resource estimate. The last technical report filed by Kernow Mining in November 2007 estimated a resource (at a 3 g/t Au cut-off) in the combined Measured and Indicated categories of 101,593 ounces Au and 446,567 ounces Ag, along with an Inferred resource estimate of 147,786 ounces Au and 483,621 ounces Ag.

Management’s focus during fiscal 2014 lies in boosting gold production at Molejón gold project through capacity expansion, advancing the Lomero-Poyatos concessions to production, continuing exploration at Brazo
 and Oro del Norte, and the initiation of exploration of Jales-Gralheira in Portugal, along with pursuing the spin-out of Panamanian Development and Infrastructure Ltd. (PDI). Petaquilla is expected to file fiscal year-end financial results for fiscal 2013 and the accompanying MD&A report near the end of August.

We reaffirm our
 Outperform rating; however, we are adjusting our price target to reflect the recent dramatic decline in gold and silver prices during the last few months. Since our valuation is based on a net present share value of attributable reserves and resources, our price target is impacted by the lower metal prices. Our adjusted target for the stock of Petaquilla Minerals is $0.94.

A copy of the full research report can be downloaded here >>  Petaquilla Minerals Report

Please visit for additional information on our research and coverage universe, and Subscribe to receive our articles and reports emailed directly to you each morning.