Australian (ASX) Stock Market Forum

CXC - Coeur d'Alene Mines Corporation

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Both ASX pure silver miners (CXC and MMN) today again, sold down after the 4pm close for the lowest prices of the day.

MMN sold down virtually 10% some just before the close and more after, CXC also sold down after the close for lowest price of day.

There is a lot of chart painting going on, with hedge funds that are short, trying to paint charts of junior PM companies down to encourage the nervous to sell so that they can cover. Many are currently running a long PM majors and short PM juniors hedge, that will bite them soon.

CXC has about an 8% short position on the NYSE, which is many many times larger than most of the bigger HUI companies. Other juniors likewise have heavy short positions.

I'm looking forward to the unwinding.

http://www.financialsense.com/metals/shorts.html
 
refined silver said:
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.
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Sorry to be a bit light on details, rs, but refer to company website

www.coeur.com

Mention is made of aquiring silver reserves and production of Perilya Broken Hill Ltd and of the Endeavour mine. From memory, this is not recent news and I have a recollection of reading that the price was favourable to CXC. ( And, of course, price trend is also favourable.)
As you say, these companies are often pleased to off-load their by-product to avoid the added marketing involved.

I must say, the only thing that worries me about silver per se, is that such a big proportion of production is as a by-product. This must expose the metal to potential over-supply at times of strong zinc, lead etc production. Not an issue at present, however.
 
Silver hit another 27 year high overnight in New York at USD19-95!

I bought a few more CXC yesterday.

:)
 
oldblue said:
Sorry to be a bit light on details, rs, but refer to company website

www.coeur.com

Mention is made of aquiring silver reserves and production of Perilya Broken Hill Ltd and of the Endeavour mine. From memory, this is not recent news and I have a recollection of reading that the price was favourable to CXC. ( And, of course, price trend is also favourable.)
As you say, these companies are often pleased to off-load their by-product to avoid the added marketing involved.

I must say, the only thing that worries me about silver per se, is that such a big proportion of production is as a by-product. This must expose the metal to potential over-supply at times of strong zinc, lead etc production. Not an issue at present, however.
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Thanks for the info.

There are no worries about a supply glut. Silver has been in deficit for 60 years. Billion ounce govt stockpiles are now gone.
- There is less above ground silver now than gold
- Silver has increased in price much less than the Zn, Pb, etc it is often found with,
- This is due to the largest COT short position relative to years mining supply of any commodity on the exchange - bigger by multiples than anything else.
- New industrial uses are being found for Ag all the time.
- The Zn and Pb supply is not increasing anywhere near as fast as people think.
- Silver is also a precious metal and so will greatly increase like gold with investment demand in these times.
 
Silver closed at $20-37 overnight.

CXC SP up another 5% today.

Wish I could afford to buy more.

:)
 
CXC already had one of the biggest short positions against it of any of the gold/silver miners on the HUI index.

In the last two weeks of March, it was in the top 5 NYSE shares for increased positions! Yet, it went down around 10% on a 20% drop in silver.

http://www.reuters.com/article/marketsNews/idINN0433195820080404?rpc=44

If silver refuses to go down anymore, and starts grinding upwards, when these guys have to cover, CXC could really get a move on.
 
Announcement today - has to be good for the SP:

POTOSI, Bolivia – June 18, 2008 - Coeur d’Alene Mines Corporation (NYSE:CDE,
TSX:CDM, ASX:CXC) announced today that its new San Bartolomé mine, the world’s largest
pure silver mine, has poured its first silver doré. Additionally, representatives of the Company,
local and national mining cooperatives and Bolivian government officials recently marked the
inauguration of the new facilities at the San Bartolomé silver mine, located in South America’s
historically richest silver mining area.
San Bartolomé is expected to produce six million ounces of silver this year and nine million
ounces in 2009, its first full year of production. The complete crushing, milling, leaching,
thickening, Merrill-Crowe and smelting facilities are now all commissioned and fully
operational. San Bartolomé contains an estimated 153 million ounces of probable silver
mineral reserves and an additional 34 million ounces of measured and indicated silver mineral
resources, with an expected 14 year mine life.
The new plant and tailings facilities were constructed by 2,200 Bolivian workers and employs
250 local workers from Potosi and generates an additional 1,000 mining related jobs in the
nearby community. Construction work at San Bartolomé, which surpassed five million man
hours without a lost time accident, was recently recognized with a top safety award from the
International Society of Mine Safety Professionals.
“The San Bartolomé mine, a cornerstone of Coeur’s growth, is the culmination of the efforts of
a great many people, and we at Coeur are especially proud to be associated with the mining
cooperatives of Potosi on this project,” Dennis E. Wheeler, Chairman, President and Chief
Executive Officer of Coeur said at the inaugural event in Potosi. “Mining has been taking
place here for nearly 450 years, and San Bartolomé represents an entirely new way of mining
at Potosi. The San Bartolomé construction effort is of the highest quality, bringing economic
development to Potosi, protecting the environment, and building a state-of-the-art processing
plant under the safest levels of worker safety.”
Mr. Wheeler added, “Production from the San Bartolomé silver mine will drive a 40% increase
in our silver production this year to sixteen million ounces and lead to a doubling of our 2008
operating cash flow based on curret silver and gold prices.”
 
cxc has had an almost perfect downtrend. Fundamentals have not added value yet and the hedge funds consistently short it.

where is the future headed?
 
berocca said:
hedge funds consistently short it.
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Hedge funds consistently shorting it!!!! Right.

What evidence have you for this statement. Its just a lazy throw away excuse for a stock that is tanking. Naked shorts are at 0.5% :rolleyes:
 
I almost bought CXC maybe six months back, but didn't because I found something which I don't understand. Coeur trades in the US as CDE and CDM in Torono. If you look at the 4 year chart of CDE, its long term growth is flat-line, while CDM actually downtrends. If silver has been trending upwards over this time period, then why the chart behaviors as described? What I'm saying is they don't instill much confidence. If someone can explain the relationships, it would help a lot.
 
Trembling Hand said:
Hedge funds consistently shorting it!!!! Right.

What evidence have you for this statement. Its just a lazy throw away excuse for a stock that is tanking. Naked shorts are at 0.5% :rolleyes:
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0.5% of ASX shares?

The major listings are NYSE and TSX.
This was one of the most shorted stocks on NYSE but it's been covered in the recent weakness in gold/silver.

http://www.shortsqueeze.com/?symbol=CDE

Thought it was higher in earlier months but don't actively follow short positions in US
 
bvbfan said:
The major listings are NYSE and TSX.
This was one of the most shorted stocks on NYSE but it's been covered in the recent weakness in gold/silver.

http://www.shortsqueeze.com/?symbol=CDE

Thought it was higher in earlier months but don't actively follow short positions in US
Click to expand...

Its sitting at 12% of float that is a long way from the most shorted stocks on NYSE. :rolleyes:

But my point is actually what you have stated. That hedge funds wouldn't be shorting here. They would be covering. Its the "invested" realizing that this is a dud and dumping, more likely.
 
CXC has lots of silver, and a smattering of gold.

I'm hearing from more quite a few sources that it's silver time.

Is it time to buy CXC? Anyone been following this of late?

:rolleyes:
 
oremo said:
CXC has lots of silver, and a smattering of gold.

I'm hearing from more quite a few sources that it's silver time.

Is it time to buy CXC? Anyone been following this of late?

:rolleyes:
Click to expand...

I don't know about time to buy CXC but I hold a few and find it to be a frustrating exercise.
There is a view, widely held by silver "experts" that the Price of Silver is heavily manipulated, that there are much larger quantities of silver certificates sold than can be backed by physical silver, and that one day the PoS will take off.
I really don't know what the truth of all this is, but I live in hope and hold my CXC for the ride!

;)
 
One of the factors working in CXC's favour and for the PoS is that a large proportion is produced as a by-product of the mining of other metals such as zinc and lead. A lot of zinc mines have been closed or are on reduced output at present, leading to a presumed lower supply of silver.

CXC, as a largely primary silver producer, should be benefitting from this.

;)
 
A big jump in CXC shareprice today - up 18% following a 23% increase in the States last week.
Some speculation elsewhere that it is probably short covering, but whatever, it's good news for holders!

:cool:
 
Hey oldblue.
Yes very good jump today.
Its actually been quite pleasing to see it rise over the past 4 weeks.

After it sold some of its future production for $100,000,000.00 a while back, and its current market cap is on 86mil!!! ha
Yes of course its a bear market, and GFC and all. Buts its cheap!!!
I bought in ages ago... $3.80 before it merged last year. sigh.
so long ago.
Going buy the charts, I would love to see it hit 2.50, but, well who knows where the market is going...
I have averaged down as much as I could, so I have belted in and ready for the ride.

IMHO.
and def do your own research!!!! lots of it!!!!
 
CXC starts trading on the basis of the 10 for 1 consolidation on 11 June, not that that should make any difference to the value of the company!
What shouldn't have escaped notice, however, is that the price of spot silver has just made its biggest monthly gain since 1987!

:cool:
 
Yeah I noticed went back to stock code CXC from CXCDA not sure why they bothered with the change, bit of a bummer in Etrade all historical data is gone.

I've been watching these have a steady decline this week on little news. it came up from a low of 66 cents to over $2 before it went 10 for 1 recently so i wonder what the fair price is now seeing there are around $17.

Does anyone hold some of these and what are there thoughts on the long term price... I am thinking it all depends on silver and gold doing well.
I have been watching them for quite some time and am interesting what other people's thoughts are.
 
The consolidation was necessary because of the US rule that doesn't allow a share to trade below $1 for more than a given period. I forget the details but CDE - I think that's the US code - breached this mark a couple of months or so ago.

The company is in expansion mode and has good prospects IMO. The silver market is, however, thought by some commentators to be heavily manipulated with the result that the PoS is unduly depressed. It's said that "paper silver" on issue far exceeds the amount of the physical stuff backing it. I wouldn't really know.

CXC has also been subject to some pretty violent swings in price from time to time. I suspect that there is an active arbitrage between the US price and the CXC price by someone or another at times although the CDE price itself also moves abruptly.
I hold a few, at prices well above current levels but it's not really a share, or a commodity, that I feel really comfortable with.
 
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