02/19/10 Stockholm, Sweden – Just today, ECU Silver Mining released its latest report on its January 2010 silver and gold fabrication and, according to Agora Financial commodities expert Byron W. King, it provides encouraging news.
Here is King’s perspective on the situation:
“ECU has not yet released its financial results for 2009 overall, but as best I can tell there’s no bad news. In fact, as 2009 drew to a close, ECU was digging ore and producing silver. Production in January 2010 was up from previous months, so all the trends are in the right direction. Here’s the table that ECU just published, with January numbers:
“Add the output numbers, and you have almost 97,000 ounces of silver equivalent — over $1.5 million if you use $16 per ounce of silver.
“From what I can see, there’s a very nice, strong development and production story unfolding before our eyes. Plus, while we’re at it, ECU controls the largest mineral resource inventory among its peer group of junior miners. Here’s a chart that illustrates the standings:
“So ECU has great resources in the ground, and a growing base of output. My best explanation for why the stock is down is that ECU is under-covered. There just aren’t enough people out there who are banging the drum for it.
“Here’s a company with great ore resources. It’s in production, with silver and some gold. It’s ramping up steadily, with no apparent glitches in the mine-mill circuit. Cash flow is coming in. And we have the world financial system melting down around our ears, which is long-term bullish for precious metals.”
King follows investment opportunities in the energy sector and in scarce resources, including the junior miners described above. You can read more details about his research strategy by visiting the Agora Financial reports page here.
Rocky Vega
Rocky Vega is publisher of The Daily Reckoning. Previously, he was founding publisher of UrbanTurf and RFID Update, which he operated from Brazil, Chile, and Puerto Rico, and associate publisher of FierceFinance. He specialized in direct marketing at MBI, facilitated MIT Sloan School of Management programs, and has been featured on CBS. Vega graduated with honors from Harvard University, where he was on the board of Let’s Go Publications and directed business programs involving McKinsey, Goldman Sachs, and Harvard Business School faculty. He is also enrolled at the Stockholm School of Economics.
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I doubled down my position and bought in at .56
I never double down but in this case it made perfect sense. You are right. They are undercovered and need to change their name to something more commercially sexy like SilverFox