AUM: World-Class Projects and Still Cheap
J.Taylor's Gold, Energy & Tech Stocks (10/22/2010)
"When our focus is on junior exploration stocks, we. . .tend to think anything over a few dollars is expensive. But 'expensive' is certainly a relative term. The better measure is a company's market cap (price x number of shares outstanding). In the case of Golden Minerals with its close this week at $24.45, it has a market cap of $356M. Is that too high? Well, 'high' is also a relative term. In the case of Golden Minerals, with a very, very strong management team, one of the highest-grade silver mining projects in the world now being developed (the El Quevar in Argentina), several more potentially world-class, advanced-stage projects and some of the most promising grassroots properties in the world scattered in Mexico, Peru and Argentina, my thinking is that this stock is still, even at $24.45, very inexpensive. One analyst recently put a $105 target on Golden Minerals. And Chen Lin has been calling it one of his top two or three picks, as well.
The 51.5 Moz. silver may seem small, relative to the resources of many other companies we cover. But keep in mind that most of those resources come only from the Yaxtche Zone and that this is just one of 12 other zones identified on the El Quevar Property, which management considers a district-sized play. I spoke with Chen Lin last week after he visited with the management in New York, and I must say, Chen was so excited about this company he was having trouble containing himself."
