Silver Penny Plays

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Bulm 1.40 Lebed pump fYI

from Lebed -

I am 1,000% confident about Bullion Monarch Mining (BULM)! It was my #2 pick for 2010 and I just upgraded it from being my #10 pick for 2011 to being my #1 pick for 2011!

As you know, my #1 pick for 2010 was Great Panther Silver (TSX: GPR) at $0.88 and it closed Friday at $3.40 for a gain of 286% with GPR's CEO being featured on CNBC and ringing the closing bell at the NYSE!

BULM at $1.08 is an absolute steal. There are only 38.5 million shares outstanding, down from 38.7 million one year ago, 39.4 million two years ago, and 40.5 million three years ago! That's right, BULM is one of the only gold mining companies in the world that has been buying back its own stock!

In my opinion, gold and silver royalty companies offer the greatest upside potential with the least downside risk, as they are positioned to fully capitalize on rising precious metals prices without being responsible for any of the operating costs that come with running a gold mine!

BULM's royalties are on mines that are owned and operated by Newmont Mining (NEM), a previous pick of mine that has a $26.8 BILLION market cap! BULM is earning a 1% royalty on NEM's Leeville Mine, which is producing 500,000 ounces of gold annually and is expected to have a mine life of 10 years. BULM's 1% royalty also covers other areas in which NEM is exploring, but not yet producing from, including the surrounding North Lantern, Four Corners, and Turf mines.

BULM also has a 3% royalty on NEM's Maggie Creek Property, which is not yet in production but is adjacent to their Gold Quarry Mine, NEM's largest open pit operation!

BULM just reported Friday afternoon a record quarter with $1,779,069 in revenues or $7,116,726 annualized and net income for the quarter of $753,822. BULM's two closest comparisons Royal Gold, Inc. (RGLD) and Silver Wheaton Corp. (SLW) trade with price/sales ratios of 15 and 37 respectively. Those same price/sales ratios would value BULM between $2.77 and $6.83 per share! If NEM starts producing at North Lantern, Four Corners, Turf, or Maggie Creek, there is no telling what BULM's royalty revenues could rise to... especially if gold prices continue to rapidly rise!

The hidden value here is BULM's 80% ownership of EnShale, a company that has what I consider to be the world's best patent pending technology for producing oil from oil shale. The State of Utah is the Saudi Arabia of oil shale and BULM holds a lease covering 4,650 acres and containing an estimated 667 million barrel oil resource!

Oil is now back up to $100 per barrel and oil stocks are absolutely exploding! EnShale's technology can produce oil from oil shale at an approximate cost of $30 per barrel. I believe BULM's interest in EnShale is worth a lot more than BULM's current share price of $1.08 alone and that BULM's royalties are worth a very minimum of $2.77 to $6.83 per share on top of the value of EnShale, and that's only based on NEM's currently producing Leeville Mine and not factoring in the potential for NEM to begin production at North Lantern, Four Corners, Turf, and Maggie Creek.

My #3 pick for 2011, Eurasian Minerals (TSX Venture: EMX), made an offer to acquire BULM last year in a deal that would currently value BULM at $1.51 per share... but BULM turned the deal down! It wouldn't surprise me to see BULM back at $1.51 per share within days. I believe BULM would still be a steal at $1.51!


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Rocketstocks
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Saturday, February 26, 2011 12:25:05 PM
Re: The_Free_Nebula post# 7557 Post # of 7562
BULM DD video - If you have not researched BULM yet, do yourself a favor and do so before the masses find it and it runs multi dollars.

This company is so clean and undervalued, its hard to believe... There sure aren't many PROFITABLE, debt free gold/silver/oil plays trading for a $40,000,000 market cap... which is probably why they're VERIFIABLY buying back millions of the float.

This video is very well done and has tons of great info on both their gold/silver properties and patent pending shale oil tech... Their growth is currently coming from a single property, with other properties due to come online in the near future via joint ventures with Barrick, Newmont, Nevada Rae and others.

http://www.bullionmm.com/component/content/article/100-video.html