and another BUY recommendation
posted on May 15, 2008 02:53AM
Edit this title from the Fast Facts Section
|Minco Silver: Deep Discount to the Market Per Ounce of Silver in the Ground|
|Minco Silver Corp. (TSX: MSV) (Pink Sheets: MISVF) is a Canadian company focusing on the acquisition and development of silver dominant projects in China.|
Minco Silver is the exclusive vehicle for pursuing silver opportunities in China pursuant to a strategic alliance agreement between Minco Gold Corporation (TSX: MMM.TO)(AMEX: MGH) and Silver Standard Resources (TSX: SSO). The Fuwan Silver was originally spun out of Minco Gold in 2005. The primary focus, at this point, is to move toward production with its primary asset, a 100% interest in the Fuwan silver project located in Guangdong Province (in southeastern China).
In our opinion, investors will want to become shareholders of Minco Silver at current price levels. Canadian investors will want to buy MSV on the Toronto Stock Exchange. U.S. investors will want to buy the stock using the symbol MISVF on the Pink Sheets. Either way, you are a shareholder in Minco Silver. Shareholders of several other North American listed mining companies operating in China have made incredible profits from their investment. Investors who bought Silvercorp (TSX: SVM) (Pink Sheets: SVMFF) at $3.00 in December of 2005 have seen its shares rocket to $23.00, and hold there. Eldorado Gold (NasdaqGS: GOLD) has traded up from $15.00 to over $35.00 in the same time period. In our opinion, Minco Silver has the same potential and we believe investors could see similar returns.
In this price range, Minco Silver is one of the cheapest silver equities by ounces in the ground when compared to other silver stocks. Minco Silver's parent company, Minco Gold, controls 41.8% of the outstanding shares and Silver Standard has a 13.2% interest. Obviously, with such a large ownership stake in Minco Silver, both Minco Gold and Silver Standard are looking for a large return on their investment. This is a great opportunity for smart investors to ride along.