Value Microcaps Junior Miners

[dr_airtime]

Thoughts...

...TGZ.TO and EDV.TO are consolidating nicely after 100%+ recent gains. I've been rotating more into EDV.TO.

The other one I have rotated into just a little bit from my other miners is USA.TO which is probably the most leveraged silver producer on TSX with very high cash costs and AISC basically at or above the current price of Silver now. Despite, that, USA has weathered the storm of 2013 quite well and their balance sheet was not bad at September 30, 2013 with $12M of working capital vs. $15M a year prior during higher silver prices. USA.TO will survive and keep operating so seems like a safe bet at this point. Just like TGZ and EDV it is consolidating now around $.62 and doesn't look like it will go lower.

Those three above have waterfall charts in H2-13, so there is still lots of upside despite them being up 100%+ off of December lows.

I'm still holding my Couer (CDE) as I'm convinced they will move when silver breaks $22 but not impressed they just announced hedged about 50% of their gold production and 25% of their silver production for 2014 at the lows - IDIOTS! If this is not a sign of a PM bottom I don't know what is. From recent PR:

The Company extended its downside metal price exposure protection on 1.25 million ounces of expected quarterly silver production and 25,000 ounces of expected quarterly gold production through the third quarter 2014 by purchasing put options with strike prices of $18.00/oz of silver and $1,200/oz of gold. This hedging strategy is designed to mitigate the cash flow impact of a short-term drop in precious metal prices while maintaining significant upside exposure to metal prices.

Here is a great post on what to expect with PM prices in 2014. Hoping it's all a little bit of history repeating. Great site!

http://www.marketanthropology.com/2014/02/back-to-bull-market-highway-for-silver.html