Hamlin's Top Silver Stock Pick
(up nearly 250% year to date!)
Silver Stock Report
by Jason Hommel, May 12, 2016
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.
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.
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