Emergent Metals Corp (EGMCF)

[NYBob]

gmoneypenny welcome to Emgold Mining Corp. (EGMCF
good to see you @ EGMCF

If you follow Jason Hommel, you'll know that he recently recommended this stock in his newsletter. But you'll also want to read his followup to his recommendation as he gives some sound advice about trading this stock.

Here's the original writeup that went out on 10/28/11 (I'll put his followup in a separate post):

JH MINT Supports Emgold Mining & Idaho-Maryland Mining Corp.

JH MINT recommends buying Emgold stock now!

Emgold is a stock with a market cap value of about $4 million.

Their assets, of the Idaho-Maryland Mine in my hometown of Grass Valley, CA, may well have gold in the ground worth between about $2 to $10 billion.

Their last feasibility study said the gold was economic to extract at about $420/oz.!

They plan to mine up to 200,000 oz. to 300,000 oz. of gold per year.

With profits of about $1200/oz., this is about $240 to $360 million dollars in profit per year.

The stock price will likely rise from about 10 cents to $1/share as they raise the money to start mining.

The stock price will then likely rise from about $1/share to $10/share after they begin mining.

In other words, people who buy stock now, may well make 100 times their initial investment!

The company will have to raise about $125 million to get started mining. With such a low market cap today, this means that only about 10% or less of the future ownership of Emgold is spoken for. The real majority owners, the other 90%, have not yet stepped up and bought stock from the company to give Emgold the financing they need to start mining.

Here's how this might take place:

Emgold has 38 million shares outstanding now.

Emgold might raise $2 million at 14 cents/share, issuing another 14 million shares.
Emgold might raise $4 million at 21 cents/share, issuing another 19 million shares.
Emgold might raise $8 million at 31 cents/share, issuing another 26 million shares.
Emgold might raise $16 million at 45 cents/share, issuing another 36 million shares.
Emgold might raise $32 million at 67 cents/share, issuing another 48 million shares.
Emgold might raise $64 million at $1/share, issuing another 64 million shares.

That would raise all the money they need to start mining, $126 million, and anyone who buys the stock today at ten cents would make 10 times their money during fund raising period. And how much stock would be issued total?

64 + 48 + 36 + 26 + 19 + 14 + 38 = 245

If Emgold does it right, they might have 245 million shares by the time they are done raising the money they need.

If they do it even better, they could put the money they raise into gold, and if the gold price doubles, they could eliminate the final fund raising, and self-finance the mine with much less stock issued!

But if they issue a total of 245 million shares, and if they earn between $240 to $360 million, that's earnings of over $1 per share. That kind of a dividend would drive the stock price to $10/share, or more, if the gold price keeps going up.

It's an axiom of life that if you don't buy it, you won't own it.

The great thing about Emgold is that it's a public company, and shares trade daily, so ownership is always on sale. Therefore, nobody has a legitimate right to complain that they don't own the profits of Emgold; because they can buy stock at any time if they wish.

With the dollar continuing to crash, I believe it is inevitable that many local mines will reopen at some point. The only real decision is who will own the mine or mines?

ANYONE CAN BUY STOCK IN EMGOLD! To buy stock, you would need to open a stock broker account with a brokerage like tdameritrade.com (recommended) or etrade.com or morganstanley.com or ml.com.

The ticker symbols are:
US Pink Sheets symbols: EGMCF.PK, EGMCF
Canadian Vancouver exchange: EMR.V, V.EMR
http://www.emgold.com/s/Home.asp
http://www.idaho-maryland.com/s/Home.asp

Will the mine create environmental damage? Not likely. Mines today are more environmentally friendly than ever. And the profits will be more than enough to pay to prevent any environmental damage. The town council and independent analysts will ensure that.

What about wells running dry? Not likely. It might only affect about 12 homes (or not), and the Mine can easily afford the $1 million estimate to put those homes on NID water, to compensate them for the change in a water source.

If you want to help out yourself, I think you should buy stock in Emgold today.

Imagine if you or your corporation put a mere $100,000 into Emgold at the start of financing, and if that $100,000 investment grew into $10 million worth of stock, that was earning over $1 million per year in dividends.

Finally, the stock is so cheap, it might be possible for a new buying group or company to buy a controlling interest in the company, rather cheaply.

I own Emgold stock, and nobody has paid me to write about Emgold. I'll earn money only if the stock price goes up.
thanks for good info