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The R/S is being done to gain an AMEX listing and to reduce shares to 68M outstanding. It will be great for the stock in the long run. I can't give you a stock under .10 in the shape of USSIF. Take a look at SMNPF.PK. It is $1.32. They are debt free and making even more than USSIF.
Big production increases coming. USSIF is forecasting big production increases for the remainder of the year. USSIF is sticking to it's forecast of 2.4M-2.6M ounces of silver production in 2011. USSIF produced 500,000 ounces in quarter 1. That leaves at least 1.9M ounces to be produced over the next three quarters. That is an average of 633,000 ounces per quarter. It appears that USSIF has reason to believe that production will be much higher for the rest of the year.
The problem is not just an AMEX listing. USSIF has way too many shares outstanding. With the new options USSIF now has more than 340M fully diluted shares outstanding. In order to qualify for AMEX listing USSIF would need a market cap of $680M. That isn't likely to happen until after the AMEX listing. With a R/S they only need a market cap of $136M to secure an AMEX listing. Even if they could get an AMEX listing without a R/S they would have too many shares. You could forget about a $5 stock which is necessary for many institutions to buy. EXK has 80M shares and is an $8 stock. USSIF will have 68M fully diluted shares after the R/S. To have any hope of being a double digit stock in the future the R/S is a must. By the way, the vote on the R/S was allready made at the annual meeting so it is pointless to oppose it now.
$30M in cash as of September 30? USSIF has 13M warrants outstanding at .35 per share. They now have the right to call these warrants anytime they want to. If they call these warrants they will receive $4.5M in cash. USSIF currently has $17M in cash on hand compared to $5.5M as of December 31. If USSIF calls these warrants during quarter 3 they have a good shot at having $30M in cash on hand as of Sept. 30.
Huge profit in quarter 2. USSIF stated that production will be significantly higher in quarter 2 than quarter 1. Silver averaged about $37 in quarter 2. I look for revenues of $27M in quarter 2 and pretax profits of $10M-$12M. I look for USSIF to have $25M in cash at yearend. USSIF stated they will report 2nd quarter earnings within 45 days of the quarter end. This might mean a TSX or AMEX listing is imminent. Drilling is being expanded even more in the second half. Co0nference calls will be held after all future earnings report.
You can vote through your broker. You should get an EMail from them notifying you of how to vote. If not, call them. You get 1 vote for each share you own. Most RS happen because companies are in trouble. Seldom do you get a company doing a RS that is experiencing exponential earnings growth. Don't concentrate on looking at what happens to companies doing a RS. Concentrate on what happens to companies after an AMEX listing. Look at GPL and EXK. The RS thing is a short term thing. Some will hate it and bail. The AMEX is a long term thing. It will propel USSIF into the bigtime permanantly. The RS will be long forgotten a year or two from now. Just think about 68M shares outstanding and earnings of around $1 per share in a year or two and the stock trading millions of shares per day..
I am voting yes on the RS, yes on the change in auditors, no on board of directors and no on stock option plan. I am very pleased with some of the changes that are going on at USSIF, but want to keep the prssure on management. USSIF now has a new mine manager, is getting outside help for the CEO, has a new drill at Galena, has started construction at Ceure and is getting new auditors. They have had tax issues with the auditors and are last on the auditor's priority list. With an AMEX listing they will be REQUIRED to report earlier. The biggest knocks on USSIF have been hedging, pink sheet stock, too many shares and late reporting. After a RS and AMEX listing everyone of these problems will be fixed by yearend. Those that bail now will be very,very sorry IMHO.
The great earnings are a no brainer. Somebody multiply 600,000 ounces by $18 and tell me what you get? Now somebody multiply 600,000 ounces by $36 and tell me what you get? Was there any difference? USSIF made $7M in profits in quarter 4 before special charges. There was a $2.7M mark to market charge on derivitives and a $1M writeoff of an investment in quarter 4. That was with $28 silver. In quarter 1 silver avereaged $33 and in quarter 2 it's averaging $38. There will be a hedging loss in quarter 1, but probably not in quarter 2. USSIF is producing far better results than GPL and almost as good as EXK. Why is the share price so much lower? It's because USSIF is a pink sheet stock and has way too many shares. What did GPL do to deserve a higher price than USSIF? They got an AMEX listing. USSIF has earned it as much as anybody by producing fantastic results($7M in quarter 4). Once they are on a level playing field(AMEX) they will get priced like anybody else. They must increase production and that will come. They've had their hands cuffed with safety issues and no cash. They now have most of the safety issues taken care of, a new mine manager and tons of cash. Can a company make it to the AMEX without a RS? Sure, but's lets be realistic. USSIF isn't going to $2 soon without that RS and AMEX listing. They could make $1B and nobody would even know it. It is what it is. They had to issue more shares to surviveand they have 340M diluted shares period. Now they will have 68M fully diluted shares and they will have less shares than any other silver miner.
The issue is not over a RS. The issue is over an AMEX listing. The only way to an AMEX listing is a RS. This stock is going nowhere without an AMEX listing. It is so off the radar it is ridiculous. It has been trading less that $300,000 in stock value in recent days. That is a joke. Look at GPL and EXK and see how much they trade. EXK trades almost 100 times as much dollar value as USSIF and it isn't much bigger. The choice is easy. Remain a rinky dink pink sheet company that no one is interested in that makes .12 per share and is a penny stock or list on the AMEX and trade 20 or 30 times as much dollar volume and earns .60 per share. It's a no brainer. How USSIF got to this point doesn't matter. It is what it is. We move into the big leagues with other silver producers or we remain a pink sheet stock. The negative impact of a RS is short lived. The thousands of new investors that buy when we are on the AMEX will not care that we got there with a RS. They will be looking at that .60 per share earnings and buying with both fists. JMHO
New auditors. The news that USSIF is changing auditors is more good news. Waiting on the auditors because we were way down on their list of priorities was probably the main reason for late reporting. Price, Waterhouse is a top notch firm and hopefully they know about the AMEX ans TSX listings and will make sure reports get out on time. I think there were some clashes over tax issues as USSIF said they were hiring outside assistance independent of their auditors. Lots of great changes happening at USSIF.
We may not have to wait until winter to see the new AMEX symbol. My guess is that the AMEX application process is well underway. Having this vote at the annual meeting was one step they needed to take to finalize the deal. You can start the application process even though your stock is below $2 with the expectation of a reverse split. Also, look for a move from the Venture Exchange to the TSX which will also benefit the stock. Another huge benefit is that USSIF(USA, USS) will now be required to report financials earlier. There are so many benefits to this RS it's ridiculous. The biggest negatives I always hear about USSIF are I never touch pink sheet stocks, they have too many shares outstanding and they report late. Now, every one of these negatives will be gone. The new U.S. Silver will have fewer shares outstanding than any other silver producer out there. So lets see: Listed on AMEX and TSX, Fewer shares outstanding than anyone, a new mine manager, hiring help for CFO and quicker reporting, a new drill operating at Galena, drilling has started at Ceure, redelopement has started at Ceure, cash is piling up. Does this company have anything going for it?
Great news! An AMEX listing is the only hope for USSIF and a RS is the only way to do that in the next year. There is no interest whatsoever in a pink sheet penny stock no matter how much they make. Keep in mind that the new company will have about 68M fully diluted shares outstanding compared to the 340M now outstanding. Right now, if USSIF reports an $8M profit that is stated as .02 per share on a fully diluted basis. That gets nobody's attention. After the RS an $8M profit would be reported as .12 per share. That will get some attention. With only 68M shares outstanding USSIF stands to make about .60-70 per share in 2011. EXK has about 85M fully diluted shares and sells for almost $10. They don't make much more than USSIF currently makes. This is perfect timing for this RS. Second quarter earnings will be the best in the history of USSIF and reporting them based on 68M shares should be dramatic. The AMEX listing will propel USSIF into the spotlight.
Another day, another $128,000. Today is day #150 of 2011. Silver has averaged $35 in 2011 and USSIF has averaged $100,000 per day in profits. Congratulations to USSIF on hitting the $15M mark in profits today for 2011. The breakeven point for USSIF on silver is $18 per ounce. When silver is $28 USSIF makes $10 per ounce. When silver is $33 per ounce USSIF makes $15 per ounce. When silver is $38 USSIF makes $20 per ounce. When silver is $43 USSIF makes $25 per ounce. USSIF produces an average of about 7,000 ounces of silver per day. Today they will make $20 per ounce from that 7,000 ounces or $140,000. They will lose $12,000 on their hedge for a profit of $128,000 for the day. Enjoy your holiday and come back tomorrow when USSIF will make another $128,000 in profits.
"Increasing complexity relating to the accounting for income taxes has led management and the audit committee to conclude that the assistance of outside expertise, independent from the company's external auditors will be engaged to assist with this work." Page 20, 2010 annual report This as too late to help with this quarter, but hopefully will help going forward.
What's important about today? If you're planning to sell USSIF in the near future then the price of USSIF today is very important. If you plan to still own USSIF in 2012 then the price of USSIF today is not that important. The price of silver today is what's important. USSIF is currently earning over $100,000 per day in profits or about $1.10 per second 24 hours a day,7 days a week.. This cash is now being used to increase drilling, make upgrades to the Galena mine and redevelope the Coure mine. This will lead to higher production and lower costs in 2012. This stock requires some patience. There has been an amazing turnaround at USSIF, but the average investor doesn't know it yet. The average investor continues to look at the past. Would someone please multiply 2.5M ounces of silver X $35 and then add $12M for byproducts? What did you get? I got $100M in revenues for 2011 for USSIF. Someday everyone will know that. Right now, it's a well guarded secret that the average investor doesn't have a clue about. That will change a lot more in a week or so and even more in late August as people's eyes are opened up to what's happening here.
USSIF said they were working hard on getting out 4th quarter results and took until the last day. The CFO is in over his head and needs help. The company stated it's intention to hire outside help in the last report. The CEO is no longer the mine manager and hopefully will get back to being CEO again. This report will be quite good, but the next one should be the big one. Since silver went from $30.50 on December 31 to $37.50 on March 31 there should be another mark to market hedging loss in quarter 1. We are also going to be subject to all kinds of accounting adjustments due to IFRS rules. With silver at $38 we may not have a mark to market hedging loss in quarter 2. With silver averaging about $39 in quarter 2 compared to $33 in quarter 1 the second quarter could be the big one. This stock is going to require patience. It will take some time to get the story out, but once it is out it has a lot of catching up to do.
Earnings might be reported in June. Due to the new IFRS accounting rules Canadian companies have been given an extra 30 days to report earnings for quarter 1. We may need to wait until JUne to get an earnings report.
IFRS accounting. Beginning this quarter all Canadian companies are required to adopt IFRS(International Financial Reporting Standards). This could result in some major accounting adjustments in quarter 1. EXK took a $14M charge in quarter 1. Each company is affected differently. We must only pay attential to actual mining profits and cash flow. These accounting adjustments are meaningless as far as real earnings are concerned.
Thanks for the gift. I never dreamed I would buy more USSIF for .50. I sold some of my SMNPF(Scorpio Mining) This is a joke. Here is the history of average silver prices for the last eight months: October $23.50, November $27.00, December $29.50, January $28.00, February $31.50, March $36.00, April $42.00, May $37.00. Silver has averaged $35 so far in 2011. USSIF has been making $100,000 in profits every day this year. This is day #137 and USSIF has made $13.7M so far this year. Every day that goes by with silver in this area adds another $100,000 in profits.Sil drops to $27.50 USSIF would be making significant profits. Any price under $27.50 and USSIF makes a PROFIT from it's remaining hedge. USSIF has allready made enough money this year to complete it's work on the Coure mine. The last two months have been very significant for USSIF. USSIF has received more cash in April and May than it ever received before. USSIF has a new mine manager that started on May 9. USSIF announced plans to hire outside help to assist with the audit. USSIF added a third contract drill at Galena in April and reserves should be increasing much faster now. USSIF began drilling at Coure. USSIF is starting developement of the Coure mine during quarter 2. .50 is a wonderful gift if you have any dry powder.
SMNPF or SPM.TO blowout earnings at 5:30 today. Scorpio MIning should report revenues of $20M for quarter 1 compared to $13M in quarter 4. Pretax earnings should be about $8M. They allready announced big production increases for the quarter. At $1.32 this stock offers huge upside. They have 191M shares outstanding and just paid off all debt. This is a rapidly growing, highly profitable silver miner.
SPM.TO blowout earnings at 5:30 today. Scorpio Mining will be reporting blowout earnings at 5:30PM today. Revenues should be about $20M in quarter 1 compared to $13M in quarter 4. Pretax earnings should be about $8M. Scorpio allready reported huge production gains for quarter 1. They have 191M shares outstanding and the stock is $1.31. They just paid off their $20M in debt 10 days ago. This is a rapidly growing, highly profitable silver miner at a very low price.
Morgan has a lot bigger fish to fry. It would be a lot more likely that the price was being held down to accomodate a buyout offer. JMHO
Blowout earnings being reported. Most of the major silver producers are reporting their 1st quarter results today. SLW and HL have allready reported. CDE, PAAS and SVM should all be reporting in a few minutes. HL reported blowout results. Almost every category was double last year's figures: revenues, profits, cash flow. These massive revenues and profits are based on $32 silver in quarter 1.
USSIF to have blowout 2nd quarter. USSIF likely sold about 200,000 ounces of silver @ about $43 in April for revenues of about $9.6M including byproducts. They likely made about $5M before hedging losses. Most of the hedging losses were taken in advance. USSIF shows a $3.6M hedging liability as of December 31. If silver drops from here USSIF could have a hedging gain for quarter 2. They are in a can't lose situation for quarter 2. If silver goes up revenues go up. If silver goes down they take a hedging gain. Even at $36 silver is well above quarter 4 and quarter 1 levels. 333,333 ounces remain left on the hedge. 166,667 ounces were settled at a loss of about $1.5M so far. This hurts, but it's not a deal killer. It looks like 2nd quarter earnings should be well over $10M before taxes no matter what silver does between now and JUne 30.
I am selling half my USSIF to buy Scorpio Mining(SPM.TO or SMNPF.PK). I am still very bullish on USSIF. I just needed to diversify. I thought USSIF was the most undervalued silver stock, but I found one just as undervalued. I expect both companies to have $24M in revenues and $9M in pretax profits(less hedging for USSIF) in quarter 1. SMNPF.PK is listed on the TO exchange and must report earlier. THEY DO NOT HEDGE. They have 200M shares outstanding. Scorpio has $20M in debt, but they are paying that off Thursday. They have been increasing production rapidly and beating estimates. USSIF produces more silver and Scorpio produces more byproducts. I am very comfortable with both stocks and will sleep better with some diversification.
Tidbits from the annual report. Here are some important bits of information from the annual report and MD&A: USSIF took a special charge of $1M in quarter 4 to write off it's investment in Atlas Precious Metals. Page 3 - That means that excluding the $2.7M hedging loss and $1M writeoff USSIF actually made $7.1M in quarter 4. That is better than I expected. Revenues were $21M and expenses were $14M. That includes all mining expenses, depreciation, G & A , etc. There is no way that USSIF has a problem with runaway expenses. This was accomplished with $28 silver. This means that USSIF should be able to earn $19M per quarter before hedging with $48 silver. You are talking about $75M a year in profits before hedging. My previous estimates have been too conservative. USSIF revised the 2009 statement and took a $2.7M tax gain. That changed 2009 profits to $6M and made 2010 comparisons look worse. Page 25 - USSIF added 304,000 ounces of silver to proven reserves. They have added a third contract drill during April. They drilled 49,434 feet in 2010 and they plan to drill 70,000 feet in 2011. The rate of reserve additions is expected to increase in 2011. Page 2 of MD&A. The developement of the Coure mine is commencing in quarter 2. Additional exploration drilling has allready begun. page 3 of MD&A - USSIF is hiring outside help to assist with the audit. "Increasing complexity relating to the accounting for income taxes has led management and the audit committee to conclude that the assistance of outside expertise, independent from the company's external auditors will be engaged to assist with this work." page 20 of MD&A
Losses from short term hedges. From page 4 of the MD&A: "Loss on hedged derivitives increased $3.1M in 2010 due to the impact of short-term hedges in 2010 when the price of silver was rising significantly, particularly in the 4th quarter of the year." USSIF had a hedging loss in quarter 4 of $2,748,157. Without this hedging loss actual pretax earnings were $6.1M. USSIF is doing extremely well from operations. The problem is with the hedging, both long term and short term. USSIF now stands to lose $8M from it's 500,000 ounce hedge in 2011. If they are still using short term hedges they could lose MUCH, MUCH more. Some people want to blame me for less than expected results in quarter 4. I am not the one responsible for the hedging policy. It doesn't help to shoot the messenger. It is important to know if USSIF is still using short term hedges in 2011. You can't make a decent estimate of earnings without knowing about hedges. USSIF has been freezing prices at time of shipment and losing the repricing gains. Other silver companies aren't doing this. In January USSIF likely shipped about 200,000 ounces of silver at about $28. That shipment settles in April and they should be payed about $48 or $9.6M. If they froze the price at $28 then they will only get paid $5.6M. This would result in a hedging loss of $4M. This is a huge issue and it is imperative that USSIF stop short term hedging.
USSIF opted not to use any of it's $16M in taxloss carryforwards for last year for some reason. This is good news for 2011 because they will take them this year. With 2011 profits near $50M they will have no choice but to use them now. It is nonsense that this won't impact profits. Look at 2009 profits and you will see that over $2M was added to profits due to taxloss carryforwards. Here is one important item in today's report that has been ovetrlooked: "We remain confident that we will deliver an average annual production in EXCESS of 2.4M ounces of silver." With 4 months of production complete USSIF has confirmed that production will average MORE THAN 600,000 per quarter in 2011. Keep in mind that the annual report is not even out yet. That will probably happen Monday. Much more information is still to come. We haven't seen how much reserves increased in 2010 yet.
4th quarter results. 4th quarter revenues were $20.9M, profits before taxes were $3.4M and profits after taxes were $2.7M. I do not know why they didn't use any of the $16M in taxloss carryforwards they have coming. They are entitled to take those in anticipation of future profits.
119 days and counting. It has been 119 days since the end of the 4th quarter and there is still no earnings report from USSIF. I thought it might be interesting to see when USSIF's peers reported their earnings:
First Majestic February 28
CoureDELane March 1
SSRI March 1
Silver wheaton March 3
Great Panther March 16
Endeavour March 22
Pan Am Silver March 23
Fortuna March 2
USSIF April 29??????
United States Silver is the laughingstock of the silver mining industry.
United States silver ranks #1 in North America. It isn't often that you can own a stock that ranks number 1 in all of Canada and the United States. USSIF is now officially the slowest reporting company in North America. Thousands and thousands of companies have reported their earnings and USSIF is #1 at dragging it's feet. Thousands of companies reported in February. Thousands of companies reported in March. Thousands reported in April. USSIF has pushed the envelope and waited until the last possible day. No one is going to take their title from them. Many much smaller companies reported way before us. I am proud that we are the very best at something. It gives me the warm fuzzies ----- I get my 4th quarter estimates by taking the actual production figures released by the company and multiplying by the actual prices received reported by the company. I am counting on $15M in expenses compared to $12M in quarter 3 due to higher production. For quarter 1 I am using 600,000 ounces at $32 plus $3M for byproducts.
What are you people smoking on this board? Doesn't anybody get it. 4th quarter figures will be dramatic and extremely important to this stock. USSIF should report a 20% increase in production, an 80% increase in revenues and a 5,000%-10,000% increase in profits. Thats not important? Do you actually think that going from $12M in revenues to $21M is not important? Do you actually think that going from $100,000 to $5-$10M or more in earnings is not important? 4th quarter results will be better than quarter 1 because USSIF will have a $3M hedging loss in quarter 1. They will have a multimillion dollar taxloss carryforward gain in quarter 4 that they won't have in quarter 1. This is THE BIG ONE. Second quarter earnings will be great, but 1st quarter won't be that great($3M after taxes). If you're waiting on quarter 1 forget it. The time is NOW. JMHO
It looks like trading might be halted. No trades in last 10 minutes. Maybe earnings are coming out?
Isn't anybody embarrassed? I can't believe grown investors are will to settle for USSIF having a market cap of less than half of GPL. GPL reported 2010 revenues(over a month ago) of $42M and profits of $1,935,000. USSIF should be reporting revenues of over $60M and profits of about $10M(if they ever report). We produce 50% more silver than GPL and their market cap is more than twine ours. Whats wrong with that picture. Doesn't anybody care. You can do something about it. EMail management at info@us-silver.com and tell Tell them you want earlier reporting and an AMEX listing. them you are voting no on all issues at the June 23 board meeting.
USSIF up 7% on 765,000 shares. GPL up 16% on 4.7M shares(they are smaller than us). EXK up 11% on 4.3M shares. USSIF has traded about $575,000 worth of stock today. GPL has traded about $18M worth of stock today. EXK has traded about $50M worth of stock today. Need I say more. This is a farce. IMHO if earnings had come out today USSIF would be $1 right now.
Yes! They are brilliant. The problem is that since April 30 is on a Saturday they can technically wait until Monday to release earnings. I am convinced that management does not want to release these earnings. If they were allowed to wait until May 31 I am certain they would wait until then. I believe they don't want to release them because they are so good. I'm baffled as to the reason they want the stock down, but I strongly believe that they do. Maybe there will be an announcement of some options at thjese low prices and then earnings will be released and the stock will zoom?
There will be no conference call for USSIF. We'll be lucky just to get earnings. Conference calls are held by real companies that want you to know whats going on. Earnings were never intended to be released until the end of last week or early this week. They have been delayed a couple of days by a death in the family(management). They could be out tomorrow, but who knows?
This is a real silver company. They tell you when they are going to report and they hold a conference call to explain everything.
Endeavour Silver to Release First Quarter 2011 Financial Results on May 5, 2011, Conference Call at 1:00 PM EDT on Same Day
Vancouver, Canada - April 26, 2011 - Endeavour Silver Corp. (NYSE:EXK, TSX:EDR, Frankfurt: EJD) plans to release its First Quarter 2011 financial results on Thursday May 5, 2011 prior to the market open.
A conference call to discuss the results will be held at 10:00 AM Pacific Time (1:00 PM Eastern Time) on the same day, Thursday May 5, 2011. To participate in the conference call, please dial the following:
1-800-319-4610 Canada and USA (Toll-free)
604-638-5340 Vancouver
1-604-638-5340 Outside of Canada & USA
No passcode is necessary
A replay of the conference call will be available by dialing 1-800-319-6413 in Canada & USA (Toll-free) or 1- 604-638-9010 outside of Canada and USA. The required pass code is 4890 followed by the # sign.
ENDEAVOUR SILVER CORP.
Per:
/s/ "Bradford J. Cooke"
BRADFORD COOKE
Chairman and CEO
About Endeavour Silver Corp. - Endeavour Silver is a mid-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. Since start-up in 2004, Endeavour has posted six consecutive years of growing silver production, reserves and resources. The organic expansion programs now underway at Endeavour's two operating silver mines in Mexico combined with its strategic acquisition and exploration programs should help Endeavour achieve its goal to become the next premier mid-tier silver mining company.
Contact Information - For more information, please contact Hugh Clarke Toll free at 877-685-9775 , or tel: (604) 685-9775 , fax: (604) 685-9744, email hugh@edrsilver.com, website, www.edrsilver.com.
USSIF is grossly underpriced with $30 silver. With silver at $30 USSIF would have revenues of about $22M per quarter and a profit of about $8M per quarter or $32M per year or .10 per share. This would give them a fair valuation of about $1.50 per share. Any pullback in silver now should not drop USSIF from this ridiculously low level. USSIF never went up in value as silver moved up from $30. Why should it go down from here? I'm not saying it won't. I'm just saying it shouldn't. The fault lies totally with USSIF management. If earnings were released in late March as they should have been USSIF would be much higher now. We should be trading around $1.50 now. JMHO
Looking at 1st quarter earnings. First quarter earnings might be a disappointment for some. I am looking for revenues of about $24M and expenses of abouit $18M, including a $3M hedging loss due to mark to market loss on the 375,000 ounces of hedges still remaining. Aftertax profits should be about $4M for quarter 1 since there will be no taxloss carryforward profits. It looks like quarter 2 should be much better. Silver averaged $32 in quarter 1 and about $45 in quarter 2 so far. USSIF has a shot at $30M in revenues in quarter 2. The biggest profit of 2011 should come in quarter 4 when taxloss carrydforwards are added in. With $50 silver 4th quarter of 2011 profits could be close to $20M with $8M in taxloss carryforwards.