production & exploration

Galena Mine - Coeur d'Alene Mining District - 48 million oz

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Message: analyst comments on US Silver

I found this on another site. I do not know who they are but it is positive for US Silver

Bob

An additional note onHecla Mining (HL), I overlooked something very important researchingthem that has come to my attention. Since they have been in the SilverValley of Idaho region for over 100 years, they are partiallyresponsible for a superfund cleanup of a large area. This could be abouta $400 million liability and it has changed my mind on the stocklonger-term. I didn't really feel as strong about Hecla because it waspretty fully valued at 5 times revenue and offers little growth.

So tomorrow on the open, I'm selling my 10% Hecla mining
position and buying a new position in US Silver (USSIF.PK).
They are a $170 million market cap company that trades at only
2.3 times revenue that offers better exposure to domestic
US Silver at a much cheaper valuation and has no potentially
huge environmental liability like Hecla.

US Silver is pink sheet company with decent volume but don't
everyone all buy it at the open and use a limit order no
higher than .53 cents.
I will slowly buy a 9.7% position throughout the day to
average my cost.

US Silver (USSIF.PK). US Silver made an incredible purchase of
the Galena mine from Coeur d'Alene Mines when it had financial
trouble and basically have leveraged at $15 million investment
into a $167 million market cap just since 2006.

They basically own three mines all contained in one large
property the historic silver valley in North Idaho.
The Idaho Silver Valley was one of the most prolific in America
producing 1.6 billion ounces of silver since 1833.

Most of the mines have closed down in the last 20 years with
such low silver prices and decreasing production rates.
However, some mavericks like US Silver spent the last five years
reopening, investing in and resuming production.
Once again we have a company that had the guts to make their
large capital investments when prices silver were low.
They are great Americans who were betting on higher future
silver prices and those bets are now paying off.
Two hundred eighty-three Americans have good quality fairly
secure jobs now because of it.


US Silver owns the famous Galena mine and mill,
the Coeur mine and the Caladay Project.

The Galena mine is the only one producing currently with
exploration in the Coeur and they have rebuilt
the Caladay shaft after a cave in to move men
and material easier.
Two of the three mines are connected by an underground rail
and they have made a lot of capital improvements.
They now control 14,000 acres of claim in an area 11 miles long
by 4 miles wide.
The stock is riskier, because the company is 100% dependent
on this one producing mine and it has higher cost per ounce
of silver of around $13.

US Silver primary mines for silver but they have a lower quality
ore that fluctuates in what it actually produces per ton
but it also produces lead and copper.
I have a lower forecast than the company of 2.2 million troy
ounces of silver, 5.5 million lbs. of lead
and 750,000lbs of copper.
That produces a 2011 revenue estimate of 70 million.

While they have these negatives relative to other companies,
their lower valuation more than reflects that already.
With a market cap of $167 million and little debt, it trades
at just 2.38 times revenue.
Not only that but as one of the few remaining primary producers
of silver in the United States, they are
a strategic national asset.


I like the way I have positioned the model portfolio now.
When Physical was cheaper relative to the miners, we were
adding to our position and were more heavily weighted in it.
Now that physical is more expensive relative to the miners,
we are doing the opposite and are 50/50%.
If we get good earnings from PAAS Tuesday after the bell and
Wed from Hecla, our portfolio of miners will perform very
nicely.
If not we will have to tough out some rough times to deal with.

US Silver Corporate NEW Presentation - January 2011

http://www.us-silver.com/i/pdf/2011-Jan-Corp-presentation.pdf

http://www.us-silver.com/s/Presentations.asp

Courtesy: www.thesilvershortage.com

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