Mines Management

(Ticker: MGN)

Silver Stock Report

by Jason Hommel, February 4, 2014

Mines Management. I own shares. The company has not paid me to write this article.

www.minesmanagement.com (ticker: MGN)

The market cap is $22 million, at $.77/share


Mines management, once in full production, can gross $264 million or more per year for 30 years.

From http://www.minesmanagement.com/montanore-overview.php

"The project has already undergone extensive engineering, and is designed with an initial production capacity of approximately 12,500 tons per day estimated to yield 8 million ounces of silver and 60 million pounds of copper, with the added potential to increase production."

And what's the projected gross profits? The company estimates an operating cash cost of $22.51/tonne. (page 10) of the Company Presentation. But the ore contains $90/tonne worth of silver and copper. (page 9) of the Company Presentation.pdf

The implied math: $90 - $22.51 = $67.49/tonne x 12,500 tonnes/day x 365 days/year x 6/7 days/week = $264 million/year.

Again. I own shares. Mines Management has not paid me to write about the company.