Geckoresearch

In just a few years, the company has gone from being almost out of business to now being on its way to becoming the next mid-tier silver producer. The change came in May of 2009 when Lenic Rodriguez became the new CEO of Aurcana, and since then, he has been responsible for some significant achievements:

U.S. Silver Corp. - Profitable Junior Silver Producer

12 January 2012

This story has similarities with Aurcana in that they purchased an existing mine back in 2006, refurbished it and are now a profitable primary silver producer. The assets of U.S. Silver are the operating Galena Mine and the adjoining, but currently non-operating, Coeur Mine and Caladay Project encompassing 14,000 acres located in the northern Idaho´s Silver Valley. The company has kept a positive cash flow for approximately 2 years. The Galena mine is the operating property, adjacent the other two advanced-stage properties, with guidance 2.4 - 2.6 million ounces of silver for 2011. The company also expects to produce 5.8 million pounds of lead and 1.0 million pounds of copper during the year. Approximately 85% of revenue is from silver, which puts US Silver among the few "pure" silver plays available on the market.

Dacha Strategic Metals - A Heavy Rare Earth Opportunity

10 January 2012

Dacha Strategic Metals (DSV.V) has somewhat been our "portfolio saviour" in a very difficult 2011, gaining ground when the overall markets have been tough. Dacha is an investment and trading company in individual REE metals. They have no mine but are licensed to buy and trade REE’s in China as well as exporting them. Dacha holds most of its inventory in LME approved warehouses in South Korea.

Avion Gold - West African Gem

1 January 2012

Avion Gold is our preferred West African gold producer. They have two great properties in Mali and Burkina Faso that just keep adding ounces. What is even more important, they have a truly world class management that we will probably track for the rest of their careers in the mining sector. We do not believe that they are about to leave anytime soon, but we do believe that Avion is a take over candidate. We first recommended Avion at ~20 cents and at C$ 1.50 it is still very cheap as they grow towards 200,000 ounces on an annualized basis the spring of 2012. Read more about Avion Gold in our site visit report.

OceanaGold - Great Value and Growth

3 March 2011

We bought OceanaGold as a turnaround story at 40 cents and the stock has almost increased tenfold since then. We believe it is still undervalued compared to other gold companies with a production in the range of 250-300,000 ounces . As the company's great project in the Philippines, Didipio, moves closer to production and also considering the potential for large new discoveries in the surrounding land package, the stock should be able to provide us with at least another double. Didipio will eventually increase the company's production to 360,000 ounces and reduce cash costs through larger copper credits. Comparing the future cash cost to peers we estimate OGC to be in the lowest quartile, once full production at Dipidio is a fact. Read more about OceanaGold in our latest research report.