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How can a company that is not currently producing silver be one of the
top-performing silver stocks in 2016, up nearly 250% year to date? To see our
reasoning behind this stock pick and why we think it will continue to
outperform, I want to share a few more details about it.
It's all about the resource! Jason Hamlin's top silver stock pick for 2016
truly has a world-class, high-grade asset. Their mines have produced 200+
million ounces of silver at average grades of 40 ounces per ton -- some of
the highest grades ever produced! Their grades now are still roughly 4 times
higher than the average of their peers, at 750+ grams of silver per tonne!
 
And it is not just the high grades, but also the quantity of in-ground
silver they own. This small cap silver company has over 55 million ounces of
silver indicated and nearly 12 million inferred. Plus another 5 million
ounces in historical resources. This is a huge silver resource!
And to show you the competence of management and the ability of their
technical team to discover ounces in a cost-efficient manner, check out how
fast they have grown the resource over the past six years and the discovery
cost per ounce:
It might seem odd to buy shares in a silver company that isn't currently
producing any silver. But would you rather own a company that has been
depleting their resource and selling silver under $15 for the past few years
or a company that has been sitting on their assets and waiting for the silver
price to rocket higher?
The company has planned an exploration program of at least 8,000 meters to
follow up on the successful 2015 high grade silver results. And there are a
few more things that could propel the share price higher this year! More
drill results, a PEA, and returning to production!
Drill results are expected in the fourth quarter of 2016. Also expected
will be the updated Preliminary Economic Assessment ("PEA"), which
is expected to yield much better economics from the re-engineering and
optimization of the mine plan along with the updated mineral resource
estimate.
Here is the real opportunity in this stock: You don't have to wait years
for mine plans, permitting, development, construction, the risk of cost
overruns or significant delays. This company already had the mine in
production recently, decided to temporarily suspend operations when the silver
price dropped, so they can move it back into production within a matter of
months. In fact, they have already been making the preparations to re-open!
Just this week, their CEO told shareholders that the management team is
preparing plans to return to production, with silver ore coming from 3
different 100%-owned silver deposits.
We are talking about potential silver production of 3 million ounces per
year, for a company with a market cap under US $100 million.
You might be thinking twice about buying shares in a stock that has
already advanced nearly 250% in just four months. But the share price still
needs to advance another 7 times higher (!) to reach its 2011 highs. Yes,
those highs were at much higher silver prices, but this company has also DOUBLED
their indicated silver resource since then.
Obviously, you don't have to buy this particular stock to profit from the
move higher in silver. You can buy an ETF like SLV (although I wouldn't) or
even a streaming stock like Silver Wheaton. But compared to the 262% YTD gain
from our #1 silver stock, SLV is up just 25% and SLW is up just 55% so far in
2016.
Gold Stock Bull recently sent out an alert about a company employing the
highly-successful streaming business model in another commodity sector. This particular
stock was hit hard late last year and dropped nearly 50% when a few of their
streaming contracts were canceled. Investors threw in the towel and assumed
the $18 million paid up front would never be recovered. However, management
just announced today that they have been successful in recovering nearly the
full value of the largest contract via security clauses granted in the
contract. The stock shot 18% higher yesterday on nearly double the average
volume. And it would still need to climb roughly 70% higher to reach 2015
highs. Jason Hamlin believes this other stock is vastly undervalued and a
strong buy at current levels.
Jason Hamlin provides investment opportunities not only in precious
metals, but in energy, agriculture any any other sector where he identifies
stocks with the potential to double within a year.
You can get access to his #1 silver stock, the breakout streaming stock
mentioned above, many other silver and gold stock picks, and his full
portfolio for just $39. In addition, Jason Hamlin publishes a monthly
contrarian newsletter, provides weekly trade alerts and gives subscribers
full access to several different premium guides to investing. He also replies
personally to subscribers and answers questions within 24 hours. This is tremendous
value for the price and I encourage you to try it out before the silver price
climbs much higher and these opportunities pass you by.
Click here to
become a premium member and gain instant access to these invaluable
resources!
Gold Stock Bull is not an investment advisory service, nor a registered
investment adviser or broker-dealer and does not purport to tell or suggest
which securities customers should buy or sell for themselves. All ideas,
opinions, and/or forecasts, expressed or implied herein, are for
informational purposes only and should not be construed as a recommendation
to invest, trade, and/or speculate in the markets. Any investments, trades,
and/or speculations made in light of the ideas, opinions, and/or forecasts,
expressed or implied herein, are committed at your own risk. The information
on this site has been prepared without regard to any particular investor's
objectives, financial situation, and needs. Accordingly, investors should not
act on any information on this site without obtaining specific advice from
their financial adviser. Past performance is no guarantee of future results.
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SEC Disclaimer: I do not own shares in the companies of this promotion,
and the companies have not paid me to promote their companies. The only way I
earn anything is if you sign up to Hamlin's newsletter.
Sincerely,
Jason Hommel
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