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Saturday, November 22, 2014
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Apogee Silver the next rising star

Yes i know Bolivia is a bit risky, for now. With the recent nationalization of South American Silver, I believe the government is done nationalizing any further, otherwise,they would have nationalized the whole sector. The nationalization in this case was only specific to a few that were strategic to national interest where by in South American Silver case, they have 25% of worlds indium reserves. This fear, which was overblown IMO, forced investors to sell, which let to crippling s.p but, this is not the company i want to talk about. It is Apogee Silver (APE-V) This company has about 117 mil ounces of silver not counting lead and zinc which with conversion would bring it up to about 147 mil with an average grade of 150 gr/tonne A very rich deposit indeed. Apogee, few weeks ago come up with partial FS that  confirmed the technical and financial viability of a silver-lead-zinc mine and base metals concentrator at Pulacayo that will form a platform from which full-scale development of the Pulacayo-Paca resource can take place The full FS should come out this month in February. With this, the company then, will be going into production with in a year They have a very large institutional backing such as Sprott Asset mgnt, Cannacord Genuity, PineTree, Ceour d'Alene and few more. Trading at around .07c, it currently offers a huge discount to it's peers on every metric. With it's current market cap around 20.5 mil, the market is only paying .18c for every ounce of silver Apogee has in the ground when the silver spot price is around $31 and when it's peers enjoys premiums over $1.00 all the way up to $8.00 for every ounce. They are a perfect take out candidate as Coeor d'Alene, a large cap miner operating next to Apogee has made intentions of making further acquisitions in 2013 They own over 10% of Apogee Silver.

Comments (3)Add Comment
Brian Boutilier
written by Brian Boutilier, March 06, 2013
They also had/have Mexican assets they got from Silver Standard. Decent size but moderate grades (under 100gpt). This was tied up in surface permitting issue, preventing development last time I checked. I have held the stock in the past. I'm avoiding development companies currently.
Jeff Nielson
written by Jeff Nielson, March 05, 2013
I recently found this company as well and it looks very appealing. They aren't large enough of a project to be a takeover candidate and there's evidence already that nationalization isn't working out so well for Evo...

Finnthecelt, I think there is something to the suggestion that being SMALLER makes one less of a nationalization target than a mega-project. However, that dynamic CAN work in reverse. Sometimes a LARGE company can fight-off grasping governments better than smaller companies.

What would obviously be best here is a little more clarity on FUTURE mining policy...
written by finnthecelt, March 05, 2013
I recently found this company as well and it looks very appealing. They aren't large enough of a project to be a takeover candidate and there's evidence already that nationalization isn't working out so well for Evo.

See this article:

"The Colquiri zinc and tin mine was expropriated from Swiss commodities giant Glencore in June last year following a dispute between rival unions.

During that month the mine's output was 429 tonnes of unrefined tin and zinc.

By December 2012, the monthly production rate from the mine reached only 337 tonnes – that's a 21% drop.

Over the same period, the state-controlled miner increased its workforce from 959 to 1,249 workers, an increase of 30%."

So these types of deals are going to slow this nationalization down, not increase it.

Additionally they are in an area where they have strong community support and no union. They are presently producing and selling tonnage and producing revenue on a testing/trial run. The reports are that it's going very well and producing high grade silver.

Worth a look for sure. Here's the company website:

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