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Americas Silver Corp (USA) (TSX:USA)(US:USAS) Precious Metals Summit Beaver
Creek, Sept. 11-13, 2019
Darren Blasutti, President & CEO
NYSE-A: USAS
https://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2019/09/11/americas-silver-corporation/play/stream/28273
Americas Gold and Silver Announces Strategic Joint Venture With Mr. Eric Sprott at the Galena Complex
T.USA |
Americas Gold and Silver Corporation (TSX: USA) (NYSE American: USAS) (“Americas” or the “Company”), a growing North American precious metals producer, today announces a strategic joint venture agreement (the “Agreement”) with Mr. Eric Sprott to recapitalize the mining operations at the Galena Complex, located in the Silver Valley of Northwest Idaho.
The strategic joint venture – expected to be 60/40 Americas/Sprott respectively – will allow Americas to increase development, modernize infrastructure, purchase new mining equipment, and target exploration below current operating areas with the goal of positioning the Galena Complex to significantly increase resources, production, and reduce operating costs at the mine over the next two years.
Effective October 1, 2019, Mr. Sprott through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, will initially commit up to US$20 million to fund capital improvements and operations for the first year to earn a 40 percent interest in the Company’s Galena Complex. Americas will invest an additional US$5 million to fund further capital improvements in 2020.
After the first year of operations under the Agreement, the parties will revert to their percentage ownership interests to fund capital projects and operations as required in proportion to those interests.
Oversight of the joint venture will consist of 2 nominees from Americas and 1 nominee by Mr. Sprott. Americas will continue to manage the day-to-day operations so long as it retains an interest in the joint venture.
“We are thrilled to partner with Eric Sprott on this joint venture. He is already the single largest shareholder in Americas; with this new venture, we are further solidifying our relationship with him”, said Darren Blasutti, President and CEO of Americas Gold and Silver. “We look forward to putting his significant investment into developing the Galena Complex to benefit all our stakeholders in the coming months and transforming the Galena Complex into a leading US-based, profitable silver producer.”
Due to low silver prices and limited capital available from the capital markets for silver operational improvements since 2012, Americas has spent minimal funds at the Galena Complex to replace worn equipment, update aging infrastructure, stope development, and exploration. Americas is currently allocating all its available capital to re-start the Relief Canyon mine in Nevada, which is scheduled to begin producing gold in late Q4, 2019. The Relief Canyon mine is targeted to increase the Company’s precious metal production by approximately 500% by 2021. In 2017 and 2018, the Company focused available capital on developing the San Rafael mine in Mexico which this year became a significant free-cash flow generating asset.
The Galena Complex possesses significant operational optionality and leverage to silver prices. The mine has between 1,250 and 1,500 tons of daily milling capacity though it is currently processing only 500 tons per day, five days a week. It produces between 0.8 M to 1.0 M silver ounces annually at high costs as a result of lower throughput, reduced operational flexibility and old equipment. The current proven and probable silver reserve includes 12.4 million ounces, a further measured and indicated silver resource of 27.4 million ounces and an inferred silver resource of approximately 39.0 million ounces (exclusive of lead and copper resources). Though this operational base is a strong starting point for comparable silver mines, a capital redevelopment of the asset is required to best exploit the existing resources, improve operational performance, and capitalize on expected higher silver prices. Further, Americas and Mr. Sprott believe there are substantially more silver resources to be discovered at better grades along extensions of existing veins and at depth.
Americas believes that the significant investment and joint venture announced today with Mr. Sprott will allow the parties to develop the Galena Complex into a long-term, profitable mine, including to take full advantage of the recent move in silver price. The Company needed an outside partner who not only shared the same vision for the current upside and leverage embedded at the Galena Complex but was willing to commit capital to systematically explore for deeper level, high-grade targets that may transform the mine into an important silver producer in the medium to long-term. Further, with the only operating mine in the Silver Valley, the joint venture will be well-positioned to take advantage of any consolidation opportunities which may evolve in the District.
Other material provisions of the Agreement include (i) standard dilution if a party does not contribute its proportionate share of costs; (ii) penalty dilution if a party defaults in contributing its share of costs; (iii) a party’s interest in the joint venture is converted to a 5% net proceeds interest if that party’s percentage interest falls below 10%; and (iv) each party has a pre-emptive right to acquire the other party’s interest should that party desire to sell its interest in the joint venture.
Medalist Capital Ltd acted as financial advisor to both parties with respect to the transaction.
For further technical information on the Galena Complex please see the applicable NI 43-101 Technical Report available at www.sedar.com and the Company’s website at www.americas-gold.com.
About Americas Gold and Silver Corporation
Americas Gold and Silver is a high-growth, low-cost, precious metals mining company with multiple assets in North America. The Company expects to begin producing gold in the fourth quarter of 2019 at its fully funded Relief Canyon Project in Nevada, USA, which is currently in construction. It owns and operates the Cosalá Operations in Sinaloa, Mexico and the Galena Complex in Idaho, USA. The Company also holds an option on the San Felipe development project in Sonora, Mexico. For further information, please see SEDAR or www.americas-gold.com.
Cautionary Statement on Forward-Looking Information:
This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information includes, but is not limited to, Americas’ expectations, intentions, plans, assumptions and beliefs with respect to, among other things, the Company’s financing efforts and the expected results from the Agreement and the joint venture; future development plans at the Galena Complex; exploration, production and cost performance at the Cosalá Operations and the Galena Complex; construction, production, development plans and performance expectations at the Relief Canyon Mine, including the anticipated timing of production. Often, but not always, forward-looking information can be identified by forward-looking words such as “anticipate”, “believe”, “expect”, “goal”, “plan”, “intend”, “potential’, “estimate”, “may”, “assume” and “will” or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions, or statements about future events or performance. Forward-looking information is based on the opinions and estimates of America’s as of the date such information is provided and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of Americas to be materially different from those expressed or implied by such forward-looking information. With respect to the business of Americas, these risks and uncertainties include interpretations or reinterpretations of geologic information; unfavorable exploration results; inability to obtain permits required for future exploration, development or production; general economic conditions and conditions affecting the mining industry; the uncertainty of regulatory requirements and approvals; fluctuating mineral and commodity prices; the ability to obtain necessary future financing on acceptable terms or at all; the ability to develop, complete construction and operate the Relief Canyon Mine; the ability of the joint venture to further fund, improve and operate the Galena Complex, and risks associated with the mining industry such as economic factors (including future commodity prices, currency fluctuations and energy prices), ground conditions and other factors limiting mine access, failure of plant, equipment, processes and transportation services to operate as anticipated, environmental risks, government regulation, actual results of current exploration and production activities, possible variations in ore grade or recovery rates, permitting timelines, capital and construction expenditures, reclamation activities, labor relations, social and political developments and other risks of the mining industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. Readers are cautioned not to place undue reliance on such information. Additional information regarding the factors that may cause actual results to differ materially from this forward-looking information is available in America’s filings with the Canadian Securities Administrators on SEDAR and with the SEC. Americas does not undertake any obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law. Americas does not give any assurance (1) that Americas will achieve its expectations, or (2) concerning the result or timing thereof. All subsequent written and oral forward-looking information concerning Americas are expressly qualified in their entirety by the cautionary statements above.
Cautionary Note to U.S. Investors:
The terms “proven and probable silver reserve”, “silver resource”, “measured silver resource”, “indicated silver resource”, and “inferred silver resource” used in the press release are mining terms used in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum Standards. Mineral resources which are not mineral reserves do not have demonstrated economic viability.
While the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource”, and “inferred mineral resource” are recognized and required by Canadian regulations, they are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed with the Securities & Exchange Commission (“SEC”). Moreover, the definitions of proven and probable reserves used in NI 43-101 differ from the definitions in the United States Securities and Exchange Commission's Industry Guide 7. As such, information contained in the Company's disclosure concerning descriptions of mineralization, reserves and resources under Canadian standards may not be comparable to similar information made public by U.S companies in SEC filings. With respect to “inferred mineral resource” there is a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever be upgraded to a higher category. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves.
image: https://cts.businesswire.com/ct/CT?id=bwnews&sty=20190909005911r1&sid=ntxv4&distro=nx&lang=en
View source version on businesswire.com: https://www.businesswire.com/news/home/20190909005911/en/
Darren Blasutti
President and CEO
Americas Gold and Silver Corporation
416-848-9503
Copyright Business Wire 2019
Business Wire
September 9, 2019 - 1:19 PM PDT
Tags:
INDUSTRIAL METALS & MINERALS
Read more at https://stockhouse.com/news/press-releases/2019/09/09/americas-gold-and-silver-announces-strategic-joint-venture-with-mr-eric-sprott#oCDbLTdhRFIpUquX.99
Interview: Darren Blasutti, Americas Silver - 121 Mining Investment London 2019 -
Americas Silver looking to gold Relief -
Americas Silver Corporation says mobilisation of the mining contractor
at Relief Canyon in Nevada is imminent and other key works remain on
track to enable a maiden gold pour from the US$30 million heap leach
project before the end of 2019.
Progress at the former Pershing Gold site, set to become a significant
producer next year, is a plus for the company that saw AISC for its
mainstay silver business blow out to US$16.15/oz in the June quarter.
Americas Silver looking to gold Relief
Relief Canyon gold mine near Lovelock in Nevada, USA
https://www.mining-journal.com/gold-and-silver-news/news/1368522/americas-silver-looking-to-gold-relief
Relief Canyon, added to Americas Silver's portfolio when it acquired
Pershing earlier this year, is forecast to produce more than
90,000oz a year for 5.5 years at AISC of about US$800/oz, making what
CEO Darren Blasutti has been indicating will be a material difference
to the company's cash flow and market standing.
"The high-return Relief Canyon project is … expected to catalyse a
rerating of the share price and increase the liquidity of the company's
shares as a larger, precious metal-focused company with operations
focused in North America" he has said.
Americas Silver said this week construction of the Relief Canyon leach
pad was 80% done and progressing as expected, the mining contractor was
due to mobilise early in August, and all crusher and conveyor
fabrication work was on track to meet scheduled delivery in the third
quarter.
Upgrading of an existing processing plant was underway.
Ore placement is scheduled to run at more than six million tons a year.
Previous mining at Relief Canyon meant Pershing, and now
Americas Silver, inherited significant infrastructure that probably
carved 50-70% off the pre-production capex for a comparable, new
operation.
The mine is near Lovelock and about 100 miles north-east of Reno.
Sandstorm Gold will receive about 32,000oz of Relief Canyon gold over
5.5 years under its US$42.5 million mine financing deal.
Americas Silver produced 345,695oz of silver and about 1.7 million
ounces silver-equivalent (including zinc and lead) in the 2019 June
quarter, up 15% year-on-year but with AISC up 200% yoy and compared
with the first quarter this year due to "lower realized prices for zinc
and lead and lower production at the Galena Complex [in Idaho]".
Silver output in the first half of 2019 was 740,000oz/3.4Moz silver-
equivalent at AISC of $10.50/oz and Americas Silver has maintained
full-year guidance at 1.6-2Moz/6.6-7Moz silver-equivalent at $10-12/oz
AISC.
The company's second quarter financials are due out by August 14.
"The company remains on target to achieve its full year production and
cost guidance despite the expected lower production from
the Galena Complex and lower realized metal prices in the quarter,"
Blasutti said.
"The second half of 2019 will be a very exciting period for our company
as we expect not only higher silver production, but most importantly,
first gold pour from the Relief Canyon mine."
Americas Silver's (TSX: USA) share price is up by more than two-thirds
since the start of this year, capitalising the company at more than
C$300 million.
https://www.mining-journal.com/gold-and-silver-news/news/1368522/americas-silver-looking-to-gold-relief
God Bless
Americas Silver Corporation > Reports Fourth Quarter and Year-End 2018 Financial Results and Provides 2019 Guidance
TORONTO, ONTARIO - March 4, 2019 - Americas Silver Corporation (TSX: USA) (NYSE American: USAS) (“Americas Silver” or the “Company”) today reported consolidated financial and operational results for the fourth quarter and year-end of 2018.
This earnings release should be read in conjunction with the Company’s Management’s Discussion and Analysis, Financial Statements and Notes to Financial Statements for the corresponding period, which have been posted on the Americas Silver Corporation SEDAR profile at www.sedar.com, on its EDGAR profile at www.sec.gov, and are also available on the Company’s website at www.americassilvercorp.com. All figures are in U.S. dollars unless otherwise noted.
Fourth Quarter and Year-End Highlights
Revenue of $68.4 million in 2018 compared to revenue of $54.3 million in 2017, an increase of 26%, despite significantly lower metal prices in the second half of 2018.
Net cash generated from operating activities in 2018 of $9.0 million compared to net cash flow generated from operating activities of $1.6 million in 2017.
Net loss of $10.7 million for the year or ($0.25) per share, compared to a net loss of $3.5 million or ($0.09) per share in 2017, an increase in net loss of 208% and net loss per share of 178% compared to fiscal 2017. The increase in net loss was due to lower metal prices and increases in non-cash and non-reoccurring items, including asset write-downs, a tax contingency, and transaction costs.
The Company entered into a definitive agreement with Pershing Gold Corporation (“Pershing Gold”) to complete a business combination at the end of September 2018 (the “Transaction). The parties to the Transaction are currently awaiting regulatory approval by the Committee of Foreign Investment in the United States (“CFIUS”).
Year-end production of 6.3 million consolidated silver equivalent ounces[1], an increase of 32% year-over-year, including 1.4 million consolidated silver ounces.
Fourth quarter production of 1.8 million consolidated silver equivalent ounces, an increase of 32% year-over-year, including 0.4 million consolidated silver ounces.
Year-end consolidated zinc production of 34.2 million pounds and lead production of 30.5 million pounds, increases of 194% and 20%, respectively.
Cost of sales of $8.29/oz. equivalent silver, by-product cash cost[2] of negative ($0.63/oz.) silver, and all-in sustaining cost3 (“AISC”) of $9.80/oz. silver for the year, representing year-over-year decreases of 18%, 107%, and 26%, respectively.
Cost of sales of $7.87/oz. equivalent silver, by-product cash cost of $1.14/oz. silver, and AISC of $11.78/oz. silver for the fourth quarter of 2018, representing year-over-year decreases of 22%, 87%, and 17%, respectively.
The Company had a cash balance of $3.5 million and working capital balance of $6.4 million as at December 31, 2018.
The Company will be hosting a conference call subsequent to the closing of the Pershing Gold acquisition to discuss the Transaction, financing for the development of Relief Canyon Mine, and year-end 2018 financial results.
“The Company had strong cash flow growth during San Rafael’s ramp-up to full production in 2018 despite the significant decrease in metal prices in the second half of the year,” said Darren Blasutti, President & CEO of Americas Silver. “With the Pershing Gold shareholder votes behind us, we are looking forward to closing the Transaction immediately after CFIUS approval. We expect a concurrent Board construction approval and announcement of fully-funded financing for the Relief Canyon project. The combined company will be focused on increasing silver production and bringing Relief Canyon to first pour before the end of the 2019.”
Pershing Gold Acquisition Update
Respective shareholders of Americas Silver and Pershing Gold provided the requisite approvals for the previously announced Transaction between the two companies on January 9, 2019. The Transaction is currently awaiting regulatory approval from CFIUS. The Company views discussions with CFIUS as progressing well and expects that the necessary approvals before the end of the first quarter.
Consolidated Production and Operating Costs
https://www.americassilvercorp.com/news-releases/2019/americas-silver-corporation-reports-fourth-quarter-and-year-end-2018-financial-results-and-provides-2019-guidance/
https://www.americassilvercorp.com/investors/investor-centre/
https://www.americassilvercorp.com/corporate/corporate-profile/
https://www.americassilvercorp.com/investors/presentations/
http://www.pershinggold.com/file/Index?KeyFile=396319990
https://politicalvelcraft.org/?s=silver
In GOD We Trust -
http://www.kitconet.com/images/live/au0001wb.gif
Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -
http://www.biblebelievers.org.au/monie.htm
God Bless America
Ps.
opinion appreciated
TIA
Pershing Gold Catalyst Clip with VP of Investor Relations Jack Perkins at
the 2018 PDAC in Toronto -
Americas Silver Corp - Q3 Results Presentation November 5 2018 -
FInal.pptx - Read-Only 1/16
https://www.americassilvercorp.com/site/assets/files/5020/presentation20181105.pdf
AMERICAS SILVER CORPORATION PROVIDES AN EXPLORATION UPDATE
AT ITS GALENA COMPLEX AND COSALÁ OPERATIONS -
http://www.americassilvercorp.com/i/pdf/nr/nr20170531.pdf
http://www.americassilvercorp.com
https://investorshub.advfn.com/Americas-Silver-Corp-(USA)-TSX-USA-9774/
http://www.stockhouse.com/companies/quote?symbol=t.usa
In GOD We Trust -
http://www.kitconet.com/images/live/au0001wb.gif
Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -
http://www.biblebelievers.org.au/monie.htm
God Bless America
Bigone thank you, I haven't sold any; ASAPD moved to the AMEX:
ASAPD moved to the AMEX:
Americas Silver Corp (USA) (TSX:USA) Presentations September 05, 2017
Corporate Presentation
http://www.americassilvercorp.com/s/Presentations.asp
https://www.youtube.com/watch?v=eeYkoDJv304
http://www.americassilvercorp.com
https://investorshub.advfn.com/Americas-Silver-Corp-(USA)-TSX-USA-9774/
http://www.stockhouse.com/companies/quote?symbol=t.usa
In GOD We Trust -
http://www.kitconet.com/images/live/au0001wb.gif
Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -
http://www.biblebelievers.org.au/monie.htm
- God Bless -
#USAPF: The ERIC SPROTT Connection...:-]
http://www.zerohedge.com/news/2016-06-27/onward-toward-bullion-bank-collapse
http://www.silverdoctors.com/tag/eric-sprott/
http://www.zerohedge.com/users/sprott-money
https://www.sprottmoney.com/
http://seekingalpha.com/article/3977415-2-transitional-resource-companies-insider-buying#alt3
Eric Sprott
On May 20, 2016 Americas Silver Corp (OTCQX:USAPF) announced a private placement with Eric Sprott and other strategic shareholders. The gross proceeds are estimated at around C$20 million.
This small silver / base metals miner emerged in late 2014 from a merger between Scorpio Mining and U.S. Silver and Gold Inc. In 2015 the company produced 2.7 million ounces of silver, large amounts of zinc and lead and small amount of copper:
$USAPF= "Ten Bagger" just waiting....:-]
captainscotty thank you, Well, $10K gold may will be because the dollar has to much debt etc.
still a penny stock as Americas Silver Corp. is mostly bought by
private person investors as the low prices do not allow most funds
to enter -
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=122996903
Many people still own their homes and ex.
is above 55yrs. of age so they can get a revers mortgage -
they can get up to 55% of the current market value of their home and
do not need to pay out any more monthly interest etc. from their pockets -
the 5% yearly mortgage fee they can earn many time back when ex.
good value penny stock like USA will increase from the lows -
btw.
the market value of the home will increase more than the 5%
for the reverse mortgage and if the dollar goes down we still have
the house and the USA silver stock shares -
Its to look at it from the positive side vs. the negative we should
try to get away from as much as possible -
ex. the positive I see -
a prayer from even the trees to grow higher -
lets pray that USA goes higher and all priv. investors will
do good when it goes to prices were the pension funds enter -
to push it much higher -
so USA is still a great opportunity to get the fiat money
into great real values -
Corporate Presentation -
http://www.americassilvercorp.com/s/Presentations.asp
http://www.americassilvercorp.com/s/NewsReleases.asp?ReportID=745155
http://www.americassilvercorp.com/s/home.asp
http://www.kitconet.com/images/live/ag0001wb.gif
Donald Trump: Gold Better Than Cash;
Puts His Money Where His Mouth Is -
ex.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=121812424
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=121952980
$GOLD fair current legal money tender market value fiat$50K +++
easy comp. to fiat banksters mafia slave fiat currency -
E.g., -
http://www.plata.com.mx/mplata/articulos/articlesFilt.asp?fiidarticulo=281
Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -
http://www.biblebelievers.org.au/monie.htm
- God Bless -
- Amen -
#USAPF: On May 20, 2016 Americas Silver Corp (OTCQX:USAPF) announced a private placement with Eric Sprott and other strategic shareholders. The gross proceeds are estimated at around C$20 million.
http://seekingalpha.com/article/3977415-2-transitional-resource-companies-insider-buying#alt3
This small silver / base metals miner emerged in late 2014 from a merger between Scorpio Mining and U.S. Silver and Gold Inc. In 2015 the company produced 2.7 million ounces of silver, large amounts of zinc and lead and small amount of copper:
As the chart shows, Americas Silver production (and sales) is split between silver (a precious metal) and base metals.
Well, Americas Silver cannot be called, by any means, a great company. Since its merger in 2013, it has been unprofitable. However, this situation seems to be changing. For the better.
In 1Q 2016 the company was losing "only" $3.11 on each ounce of silver equivalent sold (in 1Q 2015 it was a huge loss of $9.44!). This improvement is attributable to higher prices of silver and lower costs of production. For example, all-in sustaining cost per ounce of silver went down from $19.57 in 1Q 2015 to $14.92 in 1Q 2016 (a decrease of 23.8%). As a result, the Cosala mine, an operation located in Mexico, delivered operating profit of $350 thousand in 1Q 2016. The second mine, Galena (Idaho, USA), was still unprofitable (a loss of $22 thousand).
However, the company is going to perform much better in the not so far future. First of all, Americas Silver has a large mineral base. At the end of 2015 it was holding silver reserves of 31.1 million ounces. Add to that figure the measured and indicated resources of 50.1 million ounces and 37.1 million ounces of inferred resources and the total mineral base amounts to 118.3 million ounces of silver. Well, in my opinion, Americas Silver's mineral base is quite impressive, comparable to such established silver miners as, for example, Endeavour Silver (122.5 million ounces of silver at the end of 2015).
Further, at its Cosala mine the company is transitioning the operations from the Nuestra Senora deposit to San Rafael. This new deposit should deliver much more base metals than previously (silver production should be, more or less, unchanged). For example, San Rafael should be delivering 45.5 million pounds of zinc a year (in 2015 Cosala delivered "only" 11.6 million pounds of zinc).
Generally, the San Rafael project shows a pre-tax internal rate of return of 27%, calculated using the price of silver of $16 per ounce.
Summing up - in the nearest future the following catalysts should have a positive impact on Americas Silver performance:
Higher production (chart below) Lower production costs Shifting production at Cosala to the San Rafael deposit (expected in 2017)
A private placement, announced on May 20, should fuel the company with cash of C$20 million. In the case of Americas Silver, it is a huge amount of cash. In my opinion, at the end of 1Q 2016 the company was short of cash (it held only C$2.1 million in cash). To transition its production to San Rafael, Americas Silver needs around C$28 million in initial capital costs - the private placement should cover most of these expenditures. The remaining capital should be delivered from mining operations - in 1Q 2016 the company was able to generate cash flow from operations (without working capital issues) of C$1.2 million. I think that higher silver prices plus lower costs of production should result in higher cash flow from operations, which is going to fill the financing gap at San Rafael.
Summary
Once again both notable resource investors, Ross Beaty and Eric Sprott, made surprising investments. Neither Anfield Gold nor Americas Silver are well known and established companies. However, these two investors surely see some potential in these miners. Of course, the exact reasons standing behind these purchases are known only to Ross Beaty and Eric Sprott but let me summarize these deals:
Both companies operate in established mining jurisdictions: Anfield in Brazil and Americas Silver in Mexico and the USA Both miners are in sort of transition periods: Anfield has just acquired a property in Brazil and Americas Silver is rapidly increasing its production and cutting production costs Both companies are busy with implementing new projects: Coringa at Anfield and San Rafael at Americas Silver At this stage of development both companies are quite risky (although, in my opinion, the investment in Anfield bears much higher risk - this company is not an operating miner).
Last but not least - the timing of these purchases is worth emphasizing. My readers know my point of view on the gold market. In my opinion, it is currently in its first stage of a bull run. However, it is very hard to predict the direction of any market. After its initial rally, the gold market is hesitating now and many investors are trying to guess what is in the cards. Ross Beaty and Eric Sprott are not guessing - they are still buying…
Note: I strongly encourage my readers to visit my blog. It is a continuation of my Seeking Alpha activity where you will find the articles posted on a daily basis.
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| Parviz Farsangi, MEng, MBA, PhD, PEng President, Chief Executive Officer & Director Mr. Farsangi has an extensive operations background and knowledge of the mining industry. Most recently he was Executive Vice-President and Chief Operating Officer of Vale (formerly, Vale Inco Limited) with the responsibility for leading the operations of Vale's wholly-owned subsidiaries. Prior to joining Vale, Mr. Farsangi had a long career with Falconbridge Limited starting at Falconbridge's Kidd Creek Mine in 1987 and rising to General Manager of the Falconbridge Sudbury Mines/Mill Business Unit in 2002. Subsequently he was President, Gramercy Alumina in Louisiana and St. Ann Bauxite in Jamaica for Falconbridge. | ||
| Hemdat Sawh, BSc, MBA, CA Chief Financial Officer Prior to joining Scorpio Mining, Mr. Sawh held the position of CFO for Crystallex International Corporation, a Canadian-based gold company with operations in Venezuela. From 2005 to 2007, he was the CFO for Goldbelt Resources Ltd., prior to which he worked with Grant Thornton LLP from 1989 to 2005, involved in the audit of small to medium-sized businesses with a concentration in publicly-listed junior mining companies. | ||
| John A. Sadek, BEng (Mining), MAusIMM Mexico Country Manager Mr. Sadek brings a wealth of international mining experience to the Corporation, with past positions including Mining Manager at the Ernest Henry gold-copper mine in Australia, Operations Analyst/Senior Mining Engineer at the Minera Alumbrera copper-gold mine in Argentina, Mine Superintendent - West Operations at the Minera Yanacocha gold mine in Peru, and most recently, Vice President Operations at the San Gregorio project for Uruguay Mineral Exploration Inc. | ||
| James M. Stonehouse, MA (Geology) Vice President, Exploration Mr. Stonehouse has over 30 years of experience in exploration, primarily focused in the Americas and on precious and base metal deposits. He is experienced in managing all aspects of exploration and has successfully led multiple teams through grass roots exploration to discovery stage, resource evaluation, feasibility study and development, including turnaround projects that brought sub-valued assets to economic status and production. | ||
| Victoria Vargas, HBSc (Economics), MBA Vice President, Investor Relations and Corporate Communications Ms. Vargas has over 18 years of experience in the mining industry and brings a wealth of experience in investor relations and stakeholder communications to Scorpio Mining. Prior to joining Scorpio, served as Vice President of Investor Relations with Greystar Resources Ltd., Romarco Minerals Inc. and VP Investor Relations and Corporate Communications for Iberian Minerals Corp. Previously, Victoria worked for Alamos Gold Inc. and held a variety of financial and corporate development positions at Kinross from 1994 until 1999. | ||
| Peter J. Hawley, BSc, PGeo Non-Executive Chairman of the Board, Director Founder and former CEO, Peter Hawley's mining-industry experience spans grassroots exploration through to development and production. He has worked extensively as a consulting geologist to a large number of intermediate and senior mining companies including Teck Corp, Noranda Inc, Placer Dome Inc and Barrick Gold Corp. He is currently President and CEO of Scorpio Gold Corporation. | ||
| Jonathan Berg, BS, MBA Director Mr. Berg has more than 35 years' experience in finance and investments, most recently as VP Finance of PeriCor Therapeutics, Inc., and non-executive chairman of Colombia Goldfields Ltd, March 2008 to October 2009. Formerly, Mr. Berg was president, chief investment officer and founder of Berg Capital Corp., a registered investment adviser based in New York. He has been involved with the start up of several companies, acting as a consultant on finance and corporate structure, and has assisted in the funding of early stage companies in the fields of energy, technology, healthcare, and consumer electronics. | ||
| Pierre Lacombe, BEng, Eng Director Mr. Lacombe has been Principal Process Engineer with AMEC since 2000. Prior to joining AMEC, Pierre was Manager of Metallurgy for Cambior from 1996 to 2000, Plant Superintendent/Senior Metallurgist for Aur Resources' Louvicourt Mine from 1991 to 1996, Assistant Plant Superintendent/Production Metallurgist for BP Minerals' Selbaie Mine from 1986 to 1991 and a junior engineer for Cominco from 1984-1986. | ||
| Ewan Mason, HBSc, MBA Director Mr. Mason began his career as a contract geologist working for a number of mining companies. Following receipt of his MBA in 1992, he embarked on a corporate banking career with the Bank of Nova Scotia, focusing on project financing. Recruited by Richardson Greenshields in 1995 (acquired by RBC in 1996), Mr. Mason rose to the role of Managing Director. In 2005, he was recruited by TD Securities to start up and head their mining investment banking team, which he led until May 2009. | ||
| Eric Lowy Corporate Secretary Mr. Lowy is a corporate lawyer with Irwin Lowy LLP. He has extensive experience advising public companies on corporate finance and merger and acquisition transactions, as well as public company governance and regulation. | ||
| Share Structure - January 4, 2012 | |
|---|---|
| Authorized shares | Unlimited |
| Outstanding common shares | 197,775,614 |
| Options | 15,474,331 |
| Fully Diluted | 213,249,945 |
| Corporate Presentation | |
| Corporate Brochure | |
| 2010 Annual Report | |
| Annual Financial Statements for the year ended Dec 31, 2011 - to be filed on Mar 14, 2012 | ||
| 3rd Quarter Report for the period ended Sep 30, 2011 Nov 03, 2011 | ||
| 2nd Quarter Report for the period ended Jun 30, 2011 Jul 29, 2011 | ||
| 1st Quarter Report for the period ended Mar 31, 2011 May 19, 2011 | ||
| 2010 Annual Report Mar 31, 2011 | ||
| Annual Financial Statements for the year ended Dec 31, 2010 Mar 31, 2011 | ||
| 3rd Quarter Report for the period ended Sep 30, 2010 Nov 12, 2010 | ||
| 2nd Quarter Report for the period ended Jun 30, 2010 Aug 16, 2010 | ||
| 1st Quarter Report for the period ended Mar 31, 2010 May 18, 2010 | ||
| Annual Financial Statements for the year ended Dec 31, 2009 Mar 31, 2010 | ||
| 3rd Quarter Report for the period ended Sep 30, 2009 Nov 16, 2009 | ||
| 2nd Quarter Report for the period ended Jun 30, 2009 Aug 13, 2009 | ||
| 1st Quarter Report for the period ended Mar 31, 2009 May 13, 2009 | ||
| Annual Financial Statements for the year ended Dec 31, 2008 Mar 30, 2009 |
Scorpio Mining Corp.
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