Silver Bull Resources Inc (SVBL)

[alohamart]

This analyst is calling for $5+ zinc within a few years: http://www.marketwire.com/mw/release_html_b1?release_id=181534

If he's right, in 3-4 years, MMG could be producing 400 million pounds of zinc a year at a cost of .25-.35/pound, and selling it for over $5 more than that. After a very short payback period of a few months, they could have free cash flow of $2 billion per year. Even assuming 100% dilution to move to production (50 mill. shares fully diluted goes to 100 mill. shares fully diluted) or a 50/50 joint venture with a partner providing financing, at just 4 x free cash flow, that would make it an $8 billion company, or an $80 stock. Plus there's all the high-grade silver and separate zinc.

Even if zinc drops back under $1 from the current $2+, MMG should be a huge winner, but the upside with zinc at $5 would be tremendous.

Now that it's listed on Amex, I think MMG is the only U.S. listed zinc junior miner (only 2 other zinc stocks AFAIK are listed in the U.S.--Teck Cominco, the largest zinc miner in the world, and LMC, listed last week after the merger of mid-tier producers EZM and Lundin). With the upcoming zinc explosion as the LME inventories become depleted, MMG's listing comes as a perfect time.

Until they complete the feasibility study and get to production, there will be lots of risk and volatility, but I'm keeping my eye on the big picture potential a few years out.