CXC - Coeur d'Alene Mines Corporation

CXC up 10% today. This could be the start of a serious upmove after 2 years of down for Coeur and 1.5 years of sideways for Bolnisi.

CXC are Chess Depositary Interests (basically the same as shares) of Coeur (CDE on Nasdaq) which after merging with Bolnisi Gold on Dec 12th is poised to become the world's biggest primary silver miner. Within a year it should be mining 30m oz of Ag. CXC has been admitted into the ASX 200 as BSG was before the merger.

Great to see a purely silver stock on the ASX ( apart from MMN )
Now to swot up on the market again!

Yes and this one moves much more like a blue-chip than MMN, (although still holding MMN and will wait for it to get off its lazy behind, which it will do in its own good time and not before )

Hi there, FAT Prophets have just sent out an email alert to their subscribers (I'm not one).

They have recomended CXC as a buy at anything below $5.20.

Now, I am going to have to take a look at what CXC is all about

roland said:

Hi there, FAT Prophets have just sent out an email alert to their subscribers (I'm not one).

They have recomended CXC as a buy at anything below $5.20.

Now, I am going to have to take a look at what CXC is all about

Click to expand...

That's good news!

Bought a few last week on the strength of a record intraday silver price, having followed the silver market for a few months.
CXC look the best silver prospect on the ASX imo.

The FAT alert:

Today's FAT alert:

As we stated in our report last night on Couer D'Alene (CXC), we were awaiting
a technical signal before placing another buy recommendation on the stock.
The US listing, CDE, had broken below a rising trendline and we were reluctant
to buy while the stock traded below this trendline.

Following a strong night for commodities and precious metals in the US last night,
Couer rallied by 8%, resulting in the stock pushing back above the
rising trendline. We view this as a bullish development and combined with our
positive fundamental outlook as discussed in last night's report, we recommend
CXC as a buy to all Members

CXC will no doubt be up strongly today. Based on last night's move in the
US, the stock should trade around $5.20. We would be comfortable recommending
a buy at around these levels

Members should note that as the company's two major mines are in the ramp
phase, there is still a considerable amount of development and commissioning
risk so this stock will continue to display a high level of volatility

Looking at the charts, it looks like CXC will probably run a little harder than it did today. Looks like it suffered a little today from the general downward trend we had after 2PM

Hey, there was also a MACD crossover that is sure to affect the CXC SP. I don;t hold any yet, but starting to feeli like I should.

roland said:

The FAT alert:

Today's FAT alert:

As we stated in our report last night on Couer D'Alene (CXC), we were awaiting
a technical signal before placing another buy recommendation on the stock.
The US listing, CDE, had broken below a rising trendline and we were reluctant
to buy while the stock traded below this trendline.

Following a strong night for commodities and precious metals in the US last night,
Couer rallied by 8%, resulting in the stock pushing back above the
rising trendline. We view this as a bullish development and combined with our
positive fundamental outlook as discussed in last night's report, we recommend
CXC as a buy to all Members

CXC will no doubt be up strongly today. Based on last night's move in the
US, the stock should trade around $5.20. We would be comfortable recommending
a buy at around these levels

Members should note that as the company's two major mines are in the ramp
phase, there is still a considerable amount of development and commissioning
risk so this stock will continue to display a high level of volatility

Click to expand...

Hm i wonder what's so special about this company, has it started producing?

Also no forward numbers as yet?

thx

MS

michael_selway said:

Hm i wonder what's so special about this company, has it started producing?

Also no forward numbers as yet?

thx

MS

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michael, seems like you need to do a little research, I've posted charts, I've given the FAT's email content. I've researched this myself and cannot give you any more than than what's here. Sorry but the rest is really up to you.

michael_selway said:

Hm i wonder what's so special about this company, has it started producing?

Also no forward numbers as yet?

thx

MS

Click to expand...

Yes its producing around 10m oz/yr. Another 10m oz/yr mine in Bolivia has just started producing and should be up to speed soon. Then have BSGs 11m oz per year in Mexico which should be producing by the end of the year. This last mine, had a cost of either 50c/oz Ag or -50c/oz Ag after Au credits.

(All figures are Ag)

Here is an article from Hot Stocks in The Age on January 23:


Coeur d'Alene (CXC)
Greg Canavan. Greg Canavan is the head of Australasian funds research for Fat Prophets.
January 23 2008

What's new?

Given the market's early year battering, the only "hot stocks" around are those that have suffered selling friction. This raises the question of whether 2008 will be the year of the bear market. While there is a strong likelihood that the financial sector is entering a prolonged period of underperformance, there is a silver lining to this impending bear market.

US silver producer Coeur d'Alene listed on the Australian Stock Exchange last month following the takeover of Bolnisi Gold, which has an attractive suite of silver assets in Mexico.

Like gold, silver has a solid future. Although silver has performed strongly over the past few years, its price has lagged behind the performance of base metals such as copper, zinc and lead as well as gold.

Today, the gold-to-silver ratio (that is, the number of ounces of silver needed to buy an ounce of gold) is about 55. This reflects silver's "de-monetisation" and its perceived utility as an industrial metal only. When gold and silver were both considered currency (only gold is today), this ratio averaged about 15. This ratio should improve in silver's favour over the next couple of years as investors brush up on their monetary history.

The outlook


Coeur's outlook rests on the successful execution of a number of development projects this year.

The crown jewel in the Bolnisi acquisition was the Palmarejo silver and gold project, one of the highest-quality primary silver projects in the world. Operations are due to begin in early 2009 when the mine will add 10.4 million ounces of silver and 115,000 ounces of gold to Coeur's production.

As soon as next month, it plans to begin operations at the San Bartolome silver mine in Bolivia. These two new projects along with existing operations mean that by 2009, if all goes to plan, Coeur will be the world's largest silver producer. At nearly 30 million ounces a year, this will almost triple current output. Coeur's other producing mines are in Australia, Argentina and Chile.

Stable production and two large projects, due to begin contributing within 12 months, mean the operational front looks good for Coeur.

Putting it in the context of rising silver (and gold) prices, neither of which the company has hedged, the earnings potential for Coeur is very encouraging.

Price

Given the Australian listing's very short price history, we've used the US listing to show past performance. After trading below $US3.50 during the mid-year correction, investors have focused on the emerging projects and the stock has made strong gains in a choppy market. Rising silver prices have obviously helped. The stock currently trades at about $US4.70, or about $5.20 locally.

Worth buying?

If you can put up with the volatility, Coeur should prove to be a good long-term bet. With the US and quite possibly the global economy sinking, authorities will go all out to add stimulus, both monetary and fiscal. This will be bullish for precious metals, including silver. That, in turn, will be bullish for Coeur d'Alene.

OK, got on board with CXC today. In at 5.02 - nearly today's low - so not too unhappy with that. Let's get that silver pumping!

What Hot Stocks didn't mention is that, amongst other things, CXC has bought forward the Ag by-product production of several Australian zinc/lead miners at what is proving to be a very bargain price!

Here is a notable comment from a holder on the Yahoo Finance Boards

Take it with a grain of salt - of course

CDE extremely undervalued 21-Feb-08 02:24 pm Jan-Feb 2004
CDE price over $7.00 a share, as high as $7.69 - approaching $8/shr
silver : about $6.50 an ounce

NOW
CDE current price under $5
Silver : almost $18.00 an ounce


CDE's profile has improved dramatically over the past year
lower cash costs
higher production totals


This company's shares are severely manipulated by shorting and from a lack of media/analyst coverage.

CDE should be trading at about $12 now.
Once the silver production kicks in it should be in the low 20s.

Click to expand...

roland said:

Here is a notable comment from a holder on the Yahoo Finance Boards

Take it with a grain of salt - of course

Click to expand...

Was there any other analysis attached to that post? If not, it's just ramping. As you say, a 'grain of salt'...

Here is an interesting article regarding the renewed interest in Silver for things such as ID cards, medical dressings etc.

The loss of demand in Silver due to the waning of the chemicals for wet photography has kept Silver in surplus etc...

The full article is from Mineweb, http://www.mineweb.co.za/mineweb/view/mineweb/en/page33?oid=47936&sn=Detail

Well I am out, took my 5% since late last week. After a lot more reading I think silver may stay in surplus a little longer than I originally thought.

With so little ASX data to analyse I will be treating CXC as very short term. It does swing 5% or so quite regularly, but seems to be locked into a narrow range.

I'm still holding and looking to buy a few more.

Ag hit a 27 year high of $18-85 in late trading yesterday in New York.

oldblue said:

What Hot Stocks didn't mention is that, amongst other things, CXC has bought forward the Ag by-product production of several Australian zinc/lead miners at what is proving to be a very bargain price!

Click to expand...

Where did you hear that? Do you know how much they have bought? That's very good news

Silver Wheaton did the same in US and Canada and has turned out to be very profitable. Since 70% of Ag is produced as a byproduct, often these compnaies are just happy to sell it as its not their main game.