Post by CT on Feb 7, 2009 1:33:43 GMT -5
The following editorial is not a recommendation to buy or sell any security. Always consult with a licensed investment professional before making any investment decision. CT and CFRN do not accept cash, stock, warrants, or the promise thereof to profile any company.
Investment Intelligence Research
The Power to Make You Money™
A Contender For 'Stock of the Decade'
No company can be a contender for Stock of the Decade, without all the right ingredients. In assessing any equity's prospects the all important question is always: What's my edge? In the following pages, we will endeavor to explain the uncommon number of edges that this company holds what makes it such a contender and why we're making this major call:
Rarely does as compelling an opportunity as this ever come our way, but in introducing this idea to you we will leave you with two thoughts to ponder as you begin to learn more:
1. If this issue performs to expectations in a flat market for Gold you will probably deeply regret not buying in at current levels of around 60 cents or so, looking for multiple gains...
2. But should it outperform or exceed expectations in a raging bull market where a $2,000 price might mean a $20 stock, $3,000, $30 and $4,000, $40 you will never forgive yourself.
3. In the late 1970's a few select Gold issues rose as much as one thousand fold higher. One issue rose from $0.40 cents to over $560 and some others even exceeded such gains.
Right now, gold sells for around $905 an ounce.
But what if you knew about the factors at play, happening this very moment, that could soon make the $1,000 mark look like pocket change? Now: Just look at what could happen in near the future...
GOLD IS GOING TO MOVE SUBSTANTIALLY HIGHER
SOONER...
Just look at how uncannily we're in total synchonization with this chart - Whether 2009 corresponds to 1978, or counting the start of Gold's Bull move from 1999, either way, we are either accelerating from somewhat of a more gentle ascent of Global Investment Demand's phase to perhaps some time over the next year or two, we will likely be transitioning into the Popular Speculative Mania Phase, as Global currencies weaken in what is shaping up to be The Greatest Bull Market of all time. Either way Gold looks poised to rise very substantially higher... If we peak later in 2013, in all likelihood it just means the Bull Market will be longer and stronger:
OR LATER...
20081216 428 chart2
During the great gold bull market of the 1970s, the average monthly gold price increased from under $35 to over $675 an ounce... representing a 1,833% gain and it actually peaked at $875, thus exceeding even the gain registered on the chart indicated above.
Now gold prices at $5,000 may seem like a stretch, especially considering the metal didn't spend much time over $1,000 last year, but with the economic similarities to what happened in the 1970's, only potentially many times worse, the prospect of $5,000 Gold is not only plausible it's becoming increasingly probable each day. And why? The Federal Reserve is inflating to the power of 10:
So if Gold can rise 500% ~ 700% over the next few years, highly leveraged Gold stocks like Santa Fe could rise many times more.
An Extrapolation of Gold's future price based on it 1970's stunning performance
And if we are:
How and why Santa Fe Gold SFEG could outperform Gold's price increase many fold...
We strongly believe this issue has the potential to exceed all expectations and that's why we are making this call and why we are going to such lengths to explain and support this.
In the '70s Gold boom we had the good fortune to know a genius trader who took on a rare assignment: Helping 15 friends and associates follow his guidance, starting out with only $20,000 and 15 months or so later, turned that amount for each of them, into $1,600,000...
That actually happened, almost exactly 30 years ago, ahead of a 4.5 fold increase in Gold, in the wake of a huge stimulus by the Federal Reserve not unlike we are witnessing today
wherein, the Fed just declared it will do: "Whatever it takes" to re-ignite the economy and already, the amount of stimulus is many times that which was applied in the late 1970's...
8,000% returns back then, involved futures, constant attention and exceptional expertise.
We already deliver this kind of constant attention, routinely 24/7, over our Global Advisory Service and we have scored exceptional gains in Gold for our subscribers since inception.
The Buy and Hold alternative, is to find the right company to invest in, so highly leveraged to any increase in the price of Gold, it could experience exponential upside gains of 5-10 fold if Gold stays at current levels and perhaps as much as 20 fold gains, should it double.
This alert is to prompt you to act now, before the market really takes off in earnest, just as it did 30 years ago, this December, when Gold began to take off and never looked back.
So far, it's almost exactly the same: Gold has already risen over $100 in December and we already called the lows to the exact day, December 5 and the last 3 times we called major lows in Gold was June 2005, 2006 and August 16 2007 all ahead of major upmoves in Gold and enabled us and our clients to partake of a 2,300% upmove in one particular Gold play, that over a nine month period, was the Number 1 mining stock gainer in the entire World...
According to some of the most prestigious and highly regarded analysts Gold prices could be headed for $1,000 soon and even Citibank says it could blast through $2,000 next year:
They also believe as we do, that Gold shares will benefit to a greater extent than the Gold price itself in the next moves up. In particular, they feel that soundly based junior mining companies will benefit very significantly in what could be Gold's strongest upcycle ahead.
The strongest trending market in this decade has been Gold, so it is no surprise, that our contender for Stock of the Decade, is also a Gold, Silver and Diversified Mining entity that is very highly leveraged to the price of Gold and thus holds exceptional upside potential...
Especially if Gold begins to accelerate exponentially higher, just at it did thirty years ago, and given the Dollar's recent largest weekly decline ever, it may well have already begun.
And in light of this, what draws us so compellingly to this emerging standout issue, is its unique appeal of being so close to ramping up to full production, meaning its earnings will begin to soar even if Gold were to stay at the same price over the next year our contender could theoretically rise 10 fold as it earns its way higher to full production and potentially can comfortably, net a $500 profit, for every ounce produced. So, we see this situation, as somewhat of a unique way to outperform most other entities or ways to participate in any increase in the Gold price with relative safety, versus futures or options and the like, and there is one added bonus with this issue it's continuing to grow its value through periodic acquisitions and also through potential discovery of additional reserves. This is really the best way to not only obtain dynamic exposure to Gold, at a very low entry price of $15 per ounce that's so hard to pass up, it also affords a unique high mark-up edge. Consider this:
How many companies out there have a near exclusive on 24 acquisitions, or could double their value in executing a few of the these same transactions? We know of at least two...
In light of this, we believe the optimum way to participate in the upside of this boom, will be through Gold equities and we are not alone in this view. There is a growing consensus among the experts in Gold, who agree that the most highly leveraged way to invest in Gold is through equities, with no debt that are already producing or are about to, have the greatest upside potential... And, if you need any more convincing, read on and learn what occurred the last time Gold began to soar exactly 30 years ago and how it maybe Déja Vu:
A growing chorus of Gold analysts are predicting explosive Gold price increases lie ahead and we agree, because like 30 years ago, once Gold's uptrend began, it was unstoppable and as you will read later on in this report, some Gold issues rose by as much as 10,000%.
We kind of feel our time may be nearing for several reasons, not only have we called a fair number of upwards of 10,000% upmoves over the past 8 years, along with numerous 50% and 100% plus gainers. But, having also called numerous interim market moves with near pinpoint accuracy, continuing to do so almost routinely, our most important success may yet be, to have inadvertently stumbled on a real potential 'stock of the decade contender'.
So just what makes this potential stock of the decade, worthy enough to be a contender? When measured from its 2003 lows, it has already risen 6,000%, and could rise a lot more:
It's what we call 'Stock Karma': When a company experiences a renaissance, there can be no stopping it. As they continue to execute and grow as many of the greatest routinely do and while they may move in fits and starts, their overall trend moves relentlessly higher. And that's what we have been witnessing with this issue over the past few years. Growth!
Growth in fundamentals, growth in reserves and major progress at every step of the way...
Given all of the above, just how important a discovery might this be and how much more could this relatively unknown low-priced entity actually rise? With our track record of 30 years or more in calling market turns and more recently, leveraging all this into one of the World's potentially most profitable investment advisory services, successively identifying and investing in, a fair number of issues very near their lows, that over a reasonable time, proceeded to increase by as much as 100 fold in value, making numerous millionaires in the process... One might say we already successfully called a few of these in the past and that was without the 20/20 foresight, that this issue currently portends: So if we were to present to you a contender with up to Five times upside or growth potential of our earliest call on one of our best performers, that rose a stunning '90 fold' over just five years and became the 2nd fastest growing company in the US according to Forbes. Would that pique your interest, especially, if it were trading at 100th or so of its intrinsic valuation, akin to buying Gold at $15 per ounce in-ground, and as astounding as that may be, also knows of other similar issues, so undervalued even today, would be akin to buying oil at $1 Barrel.
Unveiling of a potential 'Stock of the Decade'
If you think about it, many of the greatest companies around the World, started out life from the very humblest of beginnings, out of a garage or as a dream of an idea and there's almost always something extra-special, that sets them apart in their emerging years, that along with their vision, determination, hard work, karma and that obsession to succeed, can put them on a path to greatness often against all odds even following major setbacks.
The first thing that set this company apart, was literally, within months of its founding, it made two massive copper discoveries almost overnight and succeeded in selling them both, to mining giant Phelps Dodge for windfall profits of $40 Million. Soon thereafter they were able to leverage those winnings, into aquiring the World's largest Mica deposit and later added the World's largest Micaceous Iron Oxide, (MIO) deposit and a few years later, one of the largest remaining, unique Gold and Silver Grant Reserves, in the United States. With further acquisitions already achieved and more to come, such additional valuation potential, affords this entity, all of the elements to be a deserving contender for this title.
Such a story is now unfolding, that has a rather unusual twist to it. Given the tremendous declines suffered by most of this decade's biggest gainers, our contender's gains have not only remained impressive, but appear poised to accelerate, it could perhaps actually pave the way for this relatively unknown resource company, to potentially not only become one of the very largest gainers of this decade from its extreme lowest point, but in the event Gold were to soar to some incredible heights, it could position our Stock of the Decade as an even more serious contender, to perhaps being one of the greatest gainers of this era.
How? Well, in a curious twist of fate, there was some kind of accidental or rogue trade, that executed at $0.0001, when this particular issue was actually trading in low single cents during a brief period of readjustment restructuring, as it transferred to an exchange temporarily, that today already reflects a massive gain of 6,000%. Slated to soar, up to an additional 10 fold conservatively, or even as much as 100 fold should hyperinflation occur that would mean anywhere from a 60,000% to 600,000% return, or 600 to 6,000 fold gain! And stocks that experience powerful gains, not only have a tendency to continue to build on gains successively the strongest stocks in any downturn usually outperform all others, and unlike almost every other stock out there, since becoming Santa Fe Gold it's doubled.
Right now, this company is poised to earn its way to a 10 fold return, based on 20 times earnings, taking it to $6, as it ramps up to full production within weeks and that would be possible at current prices for Gold & Silver with still a lot more upside as the company is extremely highly leveraged, with significant additional assets that could be brought into major production within a few years and could make new acquisitions adding more value.
This is one intriguing unfolding story of how a little known entity, albeit rather amazingly, was actually founded on a success model of one highly accomplished explorationist and legendary Gold Miner who quite surprisingly returned full circle and is its President today, with added exceptional guidance of one of the most legendary leaders* in mining history.
And it is also the story of how a $40 Million windfall in its earliest days with $4+ Billion in ground assets today could become a $40 Billion legacy company over the next few years.
Investment Intelligence Research
Santa Fe Gold Corporation - SFEG
An Insurance Policy for your Future...
Fmr *President Exxon Minerals Joins Santa Fe's Board
Current Rating: Strong Speculative Buy - World Renowned Mining Analyst - Mike Niehauser
Initial Target Price $3 Current Estimated Valuation Range $7 ~ $13 Net Gold Equiv $18
Emerging Precious Industrial Metals and Minerals Company
Objective To Become A Mid-Tier Mining Conglomerate
Many parts of the following report were originally written over recent past and have been periodically updated since. A year ago it was very hard to visualize the fundamentals that might cause Gold and Silver to skyrocket, but now with some $10 Trillion Worldwide being administered to try and avert a financial meltdown, new lows in the US Dollar Index could be expected over the coming years and already several highly credible forecasts are now calling for Gold to soar to anywhere from $2,000 to $6,000 over the next year or few. That would equate to what happened almost exactly 30 years ago following a massive reflation by the Federal Reserve in the late 1970's, Gold soared 4.5 fold over about 13 months and some Gold stocks soared from as low as 40 cents to as much as $500 per share. And just factoring inflation over the past 30 years, the real intrinsic value of Gold today is really a lot closer to $3,150, therefore it may not be long, before the markets soon play catch up.
Super-Bull Gold Market Redux
A Brief Outline of Possibilities That Lie Ahead:
In 1970 at $35 per Oz Gold wasn't on anyone's radar so its tiny share of Global financial assets was barely noticeable. But one decade later that had grown to 34% of the Global financial pie, following a stunning 25 fold increase to $875 and 50 fold increase in Silver and just as happened during 2008, the effects of Oil's huge run up in price, is very likely continue to permeate the economy and could well be translated, into a sustained rise in Gold and therefore, we believe that with a money bubble in play, Gold's turn will be next and the potential 30% plus share it accounted for as part of the S&P 500 could come from a literal tidal wave or tsunami of buying from around the World, as a contra-currency play. Gold is exhibiting all of the hallmarks today, that it's poised for further bull market gains:
The next super-bull market that maybe, is already happening before our eyes. It is already an indisputable fact that Gold has not only held its value or soared against most all other markets in decline... It is still one the strongest markets of the decade, versus almost all others, especially in how rapidly its prices have soared over recent years tracing out day after day and emulating what happened exactly 30 years ago, ahead of massive multifold price increases as back then and over recent years. Can lightning strike twice and history repeat? If it does Gold is headed for $4,500 and Silver could hit $300. You say it can't happen? Here's a hint as to how it could: In 1980 the entire total Global market value was about Three Trillion Dollars... Today, it's $50 Trillion plus and there are tens of thousands of Centi-Millionaires and thousands of Billionaires, who are potentially prime candidates to purchase unfathomable amounts of Gold for their own financial security and wellbeing, having for the first time felt their own wealth could somehow be threatened by inflation, or some other catastrophé, not to mention the recent Worldwide meltdown, or worse still. Most Billionaires have lost 50% of their net worth. They all must be wishing, including the super-rich of the Middle East, if only they had bought Gold, or switched out of Oil at $147.
Not to forget super rich oil nations with Sovereign Wealth Funds, who like China are still piling up Trillions in hard currency, with hardly any Gold reserves to speak of, such that if they decide to increase assets, by just a few percentage points, it could up-take years of Gold supply, just to satisfy their demand, let alone reserves of newly bulging coffers of a magnitude of accumulating record cash reserves around the World, that could go for Gold.
Right now, as in the early 1970's, the actual percentage of the Global Financial Pie, at a fraction of that $50 Trillion total is so razor thin, you can hardly see it on a pie chart, but in a few years time, with all the money creation that has unfolded, that could easily swell to those historic high levels of 30% plus, in the kinds of cyclical anomalies, that tend to occur every few decades, in times of extremes or stressful periods in financial markets. And this time around it's just plain not going to be your father's Gold market anymore, because the World is running out of Gold and so hoarding could become the major factor. Therefore, we believe this Gold bull could be some 4 to 6 times as large, as 1980's highs.
An Introduction to
Santa Fe Gold Corporation
A Compelling Strategy To Leverage Gold
Latest Developments... Please visit www.santafegoldcorp.com to view numerous images of mine development & ongoing progress:
Visitors to the mine site, have reported being singularly impressed with the excellent progress on this new state-of-the-art production facility that is reportedly well under budget and maybe be ahead of schedule, bringing prospects of Gold-Silver production, ever closer.
Timeline of Progress at the Summit Silver-Gold Mine
Feb 7 Santa Fe Gold Begins Construction of Summit Silver-Gold Mine
May 29, 2008 - Santa Fe Reports Progress on Summit Mine
Construction is well under way at the Lordsburg Banner Mill Site and is being carried out by an engineering firm and other contractors, under the supervision of the company's project manager and independant engineer. The site has been prepared and contoured for drainage. The company will be in a position to begin underground operations as soon as the mining team and equipment are in place. Major road and pad preparation at the mine site has been completed. Everything's go.
New Valuation Update: Newmont's takeover of Miramar Mining in the fall 2007 potentially values Santa Fe Gold at $5 per share, hands down, without any additional premium for its additional exploration upside potential or its deserved premium, for imminent production.
Newmont's takeover is a game changer raising Gold valuations from $105 to $150 per oz for in-ground reserves, with no production or revenues, but Santa Fe is now beyond that. As we've said for some time, long overdue given Gold's increase, but what did they really get? They already got windfall gains in Gold and potential Billions in unrealized gains free and clear, so that if similar gains were applied to Santa Fe, they'd equal $450 Million or about $5.62 per share, without any additional premium, for its very near term proximity to production potential and critical valuations, for bankable feasibility studies.
Santa Fe Gold received $13.5 Million to bring the Summit into production operations in an exceedingly investor friendly transaction that may actually be a nearly unprecedented premium of some 2.5 times the 40 cent share price it was trading at upon execution at $1 per share. Why would one savvy investor beat out competing offers in what appeared to be an oversubscribed offering for $13.5 Million, at an what may be close to an all time record premium? Because, they must have concluded how undervalued Santa Fe may be today given the growing reserves of the company and upside exploration potential that could reveal millions more ounces in situ, it would be akin to buying Gold at some $15 oz that in a few months time, Santa Fe could be netting up to $500 per ounce net and that down the road, the company has the potential to earn upwards of $1 per share, or more...
For some perspective, that is akin to $40 Dow Industrial Company, getting funding at $100
June 03 2008 Santa Fe Gold Agrees to Purchase Processing Equipment and Real Property for Summit Silver-Gold Project
ALBUQUERQUE, N.M. – June 3, 2008 – Santa Fe Gold Corp
(OTC Bulletin Board: SFEG), a U.S.-based mining and exploration enterprise focused on gold, silver, copper and industrial minerals, today announced that it had entered into a definitive agreement with St. Cloud Mining Company ("St. Cloud"), a New Mexico corporation, to purchase St. Cloud’s mineral processing equipment and real property situated adjacent to the company’s Banner Mill site located south of Lordsburg, New Mexico. The purchase price is $841,500. Closing of the transaction is targeted for June 30, 2008.
Dr. W. Pierce Carson, CEO, said, "The equipment we are purchasing constitutes key remaining components required for our Banner Mill processing facility, notably a crushing and screening plant and a feeding and conveying system. Crushing and screening will be the first steps in processing Summit ore. After crushing, the ore will be sent via the feeding and conveying system to the ball mill for grinding, followed by froth flotation, to produce a saleable precious metals concentrate. We previously acquired the ball mill and flotation sections of the processing plant."
The real property included in the purchase consists of 70 patented and 5 unpatented mining claims, and assignments of mineral leases covering 17 patented and 6 unpatented mining claims. These mining claims and mineral leases, together with the patented claims the company already owns in the area of the Banner Mill site cover approximately 1,500 acres (2.3 square miles) comprising the core of the Virginia Mining District.
Dr. Carson said, "Historic production from the Virginia Mining District is estimated to total 216 million pounds of copper, 8.5 million ounces of silver and 297,000 ounces of gold. At today’s metal prices, this past production represents a value of over $1.0 billion.
Santa Fe Gold Updates Progress of at Summit Silver-Gold Mine
ALBUQUERQUE, N.M. – September 29, 2008 – Santa Fe Gold Corp (OTC BBoard: SFEG)
, a U.S.-based mining and exploration enterprise focused on gold, silver, copper and industrial minerals, today reported that construction is on track at its Summit mine and processing facilities in southwestern New Mexico and that processing of silver-gold ore is anticipated to begin the first quarter of 2009. In February 2008, the company announced it was proceeding with mine and mill construction, following the completion of $13.5 million of required financing.
“We are pleased to announce that we are on track to achieve our twelve-month construction schedule”, said Dr. W. Pierce Carson, President and CEO. “We plan to have an initial ore stock pile ready for processing when construction of the processing facility is completed and is ready to receive ore. Based on current outlooks and barring unforeseen delays, we anticipate processing to begin in the first quarter of 2009.”
At the Banner mill site, work is being carried out by a force of approximately 40 people coordinated by a lead engineering and construction firm under the supervision of the company’s project manager and independent engineer. All of the major items of equipment to be installed during construction are onsite at the mill site. Refurbishment and installation of the ball mill, flotation plant, and crushing and conveying system are underway. Upgrades of electrical and water systems also are in progress.
At the Summit mine, the company has hired its own mining crew and purchased all the necessary surface and underground mining equipment. Development of an underground decline has begun and is projected to intersect the main ore zone in December 2008.
The company also has made good progress in identifying and hiring the work force for operations, and currently employs approximately 18 people dedicated full time to the Summit project. Although it will be necessary to hire additional people, key management positions have already been filled and core operating personnel have been employed for both the mine and the mill. Carson Added:
“Our entire team is excited by the progress we are making at Summit. We are totally focused on achieving production as soon as possible. Ahead, our goal is to produce significant cash flow from current holdings while creating a portfolio of quality exploration and development projects that will ensure future revenue growth. We believe the company is well positioned to take advantage of the current attractive gold and silver prices and to increase long-term shareholder value.”
Newsflash Full Gold Production output imminent. Summit Mine is ready and all indications are the Gold vein is about to be reached enabling production to begin 24/7 and significant revenue generation from a standing start, that should equate, to $3 Million Gross monthly and $2 Million Net or some $0.25-$0.30 per sh, effectively valuing Santa Fe Gold at $5 - $6 per share at 20 times earnings, but SFEG's margin premium could drive PE's a lot higher...
Santa Fe Gold Corporation
Investment Opportunity of a Lifetime
Formerly known as Azco Mining Inc., having changed its name to Santa Fe Gold Corporation, in early September 2007, to better reflect its now significant ownership of some of the most prospective Gold Silver and Copper producing areas covering New Mexico, with particular emphasis on the 57,267 acre Ortiz Deposit's proximity to the historic city and state capital of Santa Fe and associated folklore that boasts a history of Gold discoveries as far back as 1535, when fabled explorationist Cabeza de Vaca's made his earliest encounters with Gold in the Ortiz Mountain ranges estimating significant Gold production over the past few centuries, enough to entice even the great Thomas Edison himself to prospect in the Ortiz which produced 360,000 ozs of Gold more recently.
Perhaps the best way to appraise SFEG's prospects might be to recount one renowned Gold Analyst's summation of the company in his comprehensive initial report as "Having all of the important underlying characteristics, of both a good company, and a good investment". "With management having re-structured while still making selective and valuable acquisitions and with the potential to produce cash flow, in the near term. 'The company is not widely known or well understood and its value has not yet been fully recognized, creating a discount in its share price, and a significant disconnect from its large asset values'. A number of significant initiatives are in progress, that will advance both the company, its prospects and visibility as a great investment for the future."
Santa Fe Gold Corporation
One of the most highly leveraged asset plays ever...
Major Buy Alert: We actually published this on Septemeber 11 2007, as SFEG was temporarily depressed, as we strongly believed presented us with a superb buying opportunity at the time.
"Over coming months Santa Fe Gold Corp SFEG will slowly begin to separate itself from many other Gold market hopefuls and pretenders, to one of becoming an actual Gold Mining company poised for large scale Gold and Silver production, offering potential for truly tremendous upside leverage in Santa Fe Gold's price, because over recent years we've observed similar entities to move very strongly, soon after announcing final pre-production feasibility studies as SFEG had done, articulating its plans to proceed with full production at its earliest possible opportunity."
Little did we know at the time how just how true this statement would become just a year later in how dramatically Santa Fe has already differentiated itself from most other Gold contenders and that's without rising to anywhere near the current analyst's ratings of $3 per share for this issue, which would represent upside gains of some 600 per cent, from SFEG's current levels...
With Gold analyst Mike Niehauser's industry envied reputation for finding numerous unknown Golden opportunities, his comparison of SFEG with some of his major finds of recent years that enjoyed runaway moves in excess of 1,000%, clearly sees Santa Fe as a standout opportunity with the potential to emulate his earlier successes in due time, with Santa Fe Gold's potential to gravitate to a mid-tier mining conglomerate, as it begins to bring its additional major projects into production in just several years hence. At the same time, he meticulously assessed SFEG's inground values at close to $10 and put out an initial buy target of $3. He also pointed out that it might take some time to get to $3, before his institutional clients were convinced, but he was confident that this will come to pass in due course. We second his opinion regarding Santa Fe Gold as potentially the next big thing, and given its immense in-ground reserves and the high potential for significant on-going discoveries, in one of the few remaining and apparently fairly unique 90 Square mile sized prospective areas, that can still be found in the entire US. When described as 'Geologically Superb', for additional upside exploration with such a rich history and folklore of a 'Gold Rush' past and just recently having uncovered several hundred million dollars of additional recoverable Copper on-site, its hidden values do appear to be indisputable and that could include the additional discovery of several million ounces of Gold, given geologic potential appeal of the area and the fact, only a very small portion of the property is yet proven.
Thus we believe SFEG undervalued enough, it's akin to turning back the clock as being able to buy Gold as if it were still below $400 per ounce... But in effect, at today's extreme discounted values, its way better than that, because Since Santa Fe by any number of measures is trading at a compelling $4.50 discount, in reality you're buying real reserves of Gold at $15 per oz with a net value of $450. Thus we view a discounted SFEG, as a long term option, on a future of Gold.
Santa Fe Gold Corporation
Takeover Potential and Valuation Rationale...
With Santa Fe's Summit Silver Gold now poised to begin production, verifying that this venture is not only bankable, but on track to begin profitable mining operations, leading to a multi-year output of Gold and Silver. Already under budget and in expectation of what are believed will be excellent margins at current Gold and Silver prices and with expected strong cash flows to afford all of the potential to leverage SFEG's ability to move increasingly rapidly, to bring on both of its two open pit deposits, as well as the underground Ortiz Goldfield's Deposits into full production. Additional acquisitions potential, could increase the way to annual production of hundreds of thousands of ounces of Gold, potentially valuing Santa Fe, at many times this price.
Given all of the above, the day is not so far off it seems, when SFEG could conservatively be earning upwards of a million dollars a month, just from the Summit property alone, such that even if prices for metals were much lower. But with higher prices, a million and a half, to two or more a month, could occur, as production efficiencies improve or additional areas are exploited.
Prospective investors and shareholders should well bear in mind that when SFEG first initiated negotiations to acquire the Summit Silver Gold Mine, the price of Gold was near $400 per oz and Silver was closer to $7. So, with prices today nearer $800 and Silver prices having almost since doubled, it stands to reason that if the outlook for the Summit looked so good at $400, then higher margins today must be substantially more attractive rendering it a compelling buy.
Santa Fe Gold Corporation
Awesome Technical Expertise and Mining Experience
Can a relatively unknown emerging Gold mining conglomerate, under leadership of two of the more accomplished explorationists of our time, along with its veritable dream team of Gold and Silver mining consultants, counting hundreds of years of combined experience emanating from Chapman, Wood and Griswold, Inc of Albuquerque New Mexico and the Minerals Advisory Group of Tucson Arizona, numbering more, along with its recently hired management and technicians.
Technical Team
Chapman, Wood and Griswold, Inc., Albuquerque (Summit)
Mining and geological engineers, firm established 1947
Doug Irving, P.E., President
40 years experience in underground and open pit engineering and mining
Jack Burgess, P.E., Mining Engineer
35 years worldwide experience in underground operations
Minerals Advisory Group, LLC, Tucson (Ortiz)
Technical and financial advisory service to mining industry
Peter Crescenzo, P.E.
Ex-VP Engineering for Newmont Gold Corp., 45 years experience
Martin Kuhn, P.E.
Senior Metallurgist, 40 years experience
Scott Zimmer, P.E.
Senior Mining Engineer, 30 years experience
Robert Shantz, P.E., Metallurgist (Summit)
Cimetta Engineering and Construction Co., Tucson (Summit)
Patrick Freeman, Summit Project and Mine Manager (Summit)
Patrick Freeman is also President of St Cloud Mining and Exploration
Gary Richardson, P.E., Metric Corporation, Albuquerque (Summit)
And along with all that, arguably going on $5.5 Billion in proven in-ground reserves, huge additional major discovery potential, along with multiple acquisitions upside, Santa Fe appears poised to soar many fold in the coming years, as it leverages this highly experienced resource.
The value is already clearly there. The question is: Can it happen? Well, it's happened before...
Re: Accomplished Explorationists - See Dr W Pierce Carson Bio below, plus references to his numerous discoveries and 24 identified properties brought to Azco upon engagement plus immense portfolio of discoveries by Dr Jack Frost, fmr President Exxon Minerals
It happened for us, with Headwaters HW from $0.50 ~ $45, and also with US Gold UXG from low double digit cents to as high as $10, sold around $9 and Bema Gold BGO and Agnico Eagle Mines similarly. All of which we purchased near their lows of 1999 and 2001. How many other analysts on Wall St., can truly be credited with identifying not just one or two issues that later actually rose almost 100 fold in less than 6 years, but as many as half a dozen? The seeds of the next bull market are already happening today. On November 21, 2008 our advisory service not only called the lows, but within our universe of momemtum recommendations, so far, there have been six hundred percent gainers and several multi-hundred percenters have already unfolded. You can probably count Wall Street analysts of equal on one hand but the fact and key difference is, we count as one of those analysts and we are firmly convinced re Santa Fe Gold...
Maintaining conviction for any stock can be hard: You have to stay resolved and believe in the management's ability to execute and deliver no matter what. But when management continually suprises with unexpected acquisitions that continue to add immense potential value eliminating debt through frugal operations and cost-cutting, to bringing in projects under budget as well as under promising and over-delivering: This is a formula not only for success, but a premise to 'invest big'. Our mantra that has served us well in the past and enabled us to find big winners...
Santa Fe Gold Corporation
One Investment With Exponential Upside Potential...
Santa Fe Gold's recently updated research reports, with initial low end value targets of $3 may be the first significant step towards what we foresee as a series of ascending future waypoints that will bring it closer, to its truly more realistic valuations of $7-$10 and later $18, as being the current net value of its in-ground reserves of Gold, Silver and Copper. The big question is what if, Gold were to double or more over the next year. What impact would that have on Santa Fe Gold? We believe it would have a very significant impact. In fact we've already done the homework for you. In many ways, we feel we are in a timeline, not unlike the early 1970's. In fact, 1972 was a year of significant inflation, not unlike 2008 and at the time Gold was trading at between $70 and $90 and Silver was around $1. By 1974 Gold had soared to over $200 per ounce and Silver $6.43 per ounce. Interestingly, if you add a zero to the price of Gold & Silver back then, they equate to where Gold and Silver are trading today and it makes a lot of sense as most items from those early Seventies, are trading at around ten times their value today, from houses to cars and almost everything else. What is intriguing, is that even though Gold did pull back into an interim low in 1976, Silver did not. It held its gains trading above $4.30 over the remainder of the decade, before it soared to its staggering all time record high of $50 in 1980...
The implications of this are compelling because should Gold and Silver emulate this behavior, it could set the stage for $2,000 Gold next year and possibly send Silver soaring, as high as $65. If history were to repeat, that could mean that Silver might hold its gains above $45~$50 for the most of the next decade and given the previous all time high was $50 that might imply how such a previous resistance level might actually become a future support level for Silver, in time.
That would have a very significant impact on Santa Fe Gold, because its mines contain a great deal of Silver and such dizzying prices could actually add multiple billions of dollars to its value and with the added production from the Ortiz accounting for several hundred thousands of ozs in Gold equivalent, the potential for Santa Fe Gold to earn multiple dollars per share would also be likely and could thus value the company at very significantly higher levels approaching $40 and with two dozen additional acquisitions on the cards, Santa Fe's ability to quickly build up a huge new reserve of Gold, Silver and mineral properties, values could rise very sharply higher.
This is what we foresee today, as Santa Fe's growing world class properties become monetized:
However if recent strong statements by its CEO come to pass whereby he and Dr Frost combine forces in a major exploration and multi-million million ounce acquisition binge, then along with our longer term price forecast for Gold at $1785 and Silver as high as $120, going on $300 as extreme as that might be, yet albeit conceivable... Our longer term objective for Santa Fe Gold Corp at nearer $100 share price, becomes less of some fantansy. It could indeed come to pass. And before you call me a crackpot for saying so, I've already done the homework and the facts state that if metals prices do indeed soar, Santa Fe could soar twenty to thirty-fold fairly easily.
That is what today makes Santa Fe Goldcorp such a compelling investment proposition. We can already see the future clearly enough to warrant some twenty times upside from current levels, that could potentially put SFEG at upwards of $10 over the next 18 months to 2 years, however, with likely prospects of extremely sharply higher metals prices still possible and with increasing production both from the Summit Silver and Ortiz Gold mines, revenues of as high as $100 Million cannot be ruled out, and thus any additional upside, from advanced exploration to new acquisitions with near term production potential, could drastically increase valuations as any serious addition to current reserves beyond 5 Million ounces would be the icing on the cake.
So, knowing such a possibility clearly exists, with the prospect of say half a dozen acquisitions out the 24 or so that are currently under consideration, at some point, beyond the next addition some speculation in anticiapation of additional acquisitions is like to add a significant premium to Santa Fe's share price, espeicially against a backdrop of soaring metals prices. So now it is less of a head scratcher and a whole lot more logical, as to how in the World a stock like SFEG could ever go to $20, $40, $60 or higher. 5 Million ounces at $2,000 Gold would value Santa Fe at well above $10 Billion, if you include its other properties already valued well in the Billions. But, imagine what a $60 ~ $120 Silver price could do for Santa Fe. That could multiply up to 60% of Santa Fe's assets five to ten fold, putting valuations north of $20 Billion. In the ultimate event Santa Fe achieves its goal to be a mid-tier mining conglomerate, with say 10 to 15 Million ounces of Gold in reserves, then that long shot to become a $40 Billion entity, could be possible.
Understanding SFEG's potential upside and how such a dramatic price rise could actually unfold are now clearer to see in how Gold and Silver prices could play such a huge role when viewed in the context of a potential multiplier effect that any addition of new reserves would be likely to produce. Many investors may not completely appreciate just how extremely highly leveraged SFEG truly is, in light of this and added to that: With only the reserves we have todat that with the Virginia Mining District acquisition, the impact of Silver and Gold at just two or three times today's price alone, might have on SFEG's already hefty inground reserve values at around $5.5 Billion, or $73 per share. A doubling of metals prices alone would add $1.5 Billion net or $20 per share, but a tripling or quadrupling of Silver prices could add billions more and net revenues could literally explode, if we only were to repeat Gold's 6 fold or Silver's stunning 10 fold plus performance from June 1977 through January 1980, SFEG's 'net' revenues could potentially expand to more than $100 million, just off the Summit alone... Imagine how they would soar if Ortiz went into full production with output of 200,000 oz per annum at $2,000 per ounce Gold...
Santa Fe Gold Corporation
A Compelling Investment For The Ages...
What investors should also keep at the forefront of their minds as they peruse this report, is that in due course, Gold and Silver could soar, and become amongst the greatest bull markets of our time, to levels that might be hard to visualize right now because if the old highs of $1040 are taken out, we'd expect at least an eventual more than doubling of Gold prices towards our target of $1,785. Some say Silver could even rise as high as $300 based on theories that adjusted for inflation, Silver eclipses its multi-century former highs and is an industrial metal. We're just trying to appraise you of what we feel could occur, in the event of a super bull move.
Gold analyst James Boric describes the coming stage 3 Gold Rally, of such a potential up-move:
The most profitable stage of the Gold rally - Stage Three - has not yet begun, but during such times it is possible to make exceptionally large percentage returns as previously occurred back in the 1970's...
To understand what this unfolding phase might look like, consider the gains in these Gold equities then:
* Bankeno Resources Corp rose from $1.25 to $430 a share
* Resources Corporation rose from $0.40 to $560 a share
* Steep Rock Resources rose from $0.93 to $440 a share
* Mineral Resources rose from $0.60 to $415 a share
* Azure Resources rose from $0.05 to $109 a share
* And Leon Mines rose from $0.05 to $385 a share
With a preponderance of Silver and a very low cost of production estimated at $2 per ounce, Santa Fe's Summit Silver and Gold property could be extremely profitable with sharply higher Gold and Silver prices: At $25 The Silver-Gold Summit could earn upwards of $3 Millon per month or $30 Million pa or more.
That could equate to $0.40 per share which at current peer valuations would equal $60 per share.
Given all above, the need to stay focused on the potential for 100 times upside, is paramount. Not because it will happen, but because it could happen and thus it is wise, to be well prepared.
While Mike Niehauser's 'Strong Speculative Buy' Rating a new high target of $3 is impressive enough: A closer interpretation of asset values reflect the Summit project conservatively valued at approaching $100 Million or $1.29 per share and with SFEG's own press releases, initially valuing Summit at $250 Million or in-line with industrial valuations at $3.15 and the larger Ortiz closer to a $475 Million valuation or $7 per share, just based on the first million ounce deposit, versus his low end $1.58 value per share, with both Black Canyon and New Planet Project, at a combined $3 per share or so, not only do each of the project's low end values, overwhelmingly underwrite Santa Fe's current share price: An interim waypoint of $5 and later $10 and up have to appear credible and we believe valuations will move higher, as key production objectives are achieved and anticipated new acquisitions are made and brought on line. Santa Fe's recently acquired Virginia Mining District areas could be worth upwards of $1 Billion today based on its past mining production output and additional reserves could be significant and add greatly to Santa Fe's current reserves. We believe SFEG's potential to expand Gold reserves beyond five Million ounces was recently substantially upgraded through naming of the former President of Exxon Minerals to Santa Fe's board who in his own right has a bevy of possible rich acquistions.
Santa Fe Gold Corporation
Unparalleled Management Expertise and Success...
Azco Appoints World Renowned Explorationist to Board
Tuesday May 8, 9:12 am ET
ALBUQUERQUE, N.M.--(BUSINESS WIRE)--Azco Mining Inc. (OTCBB:AZMN - News), a U.S.-based mining and exploration enterprise focused on gold, silver, copper and industrial minerals, announced today that Dr. John E. (Jack) Frost has joined its board of directors. Frost has over 50 years of international mining experience in a wide range of metallic and non-metallic minerals and has been closely involved in the discovery, evaluation, development and/or acquisition of more than 40 commercial mineral deposits.
As principal of Frost Minerals International, Inc. since 1986, Dr. Frost has provided management and consulting services involving acquisitions, minerals exploration and mining. From 1967-1986, he worked for Exxon Minerals Company and its affiliates in a number of senior management capacities, including president of Exxon Minerals International. Frost had major responsibility for establishing and managing Exxon's very successful domestic and international minerals exploration programs, among the largest in the world.
Prior to 1967, he managed exploration and mining activities for Duval Corporation and Philippine Iron Mines. In 1983, Dr. Frost received the American Institute of Mining, Metallurgical, and Petroleum Engineers' Charles F. Rand Memorial Gold Medal for innovative leadership. In 1984, he was honored with the Society for Mining, Metallurgy, and Exploration's Distinguished Member Award. Dr. Frost holds a B.S. degree in mining engineering, an M.S. degree in geology and a Ph.D. in geology, all from Stanford University.
Dr. Pierce Carson, CEO of Azco Mining, said, "Chairman of the board Larry Olson and I are delighted to welcome Jack. We are truly fortunate to have the benefit of his vast experience in the areas of exploration and development of mineral deposits, especially at this critical time in the strategic growth of our company. His advice will be invaluable as we develop our current projects and identify and evaluate future acquisition opportunities."
Dr. Frost said, "I am excited about this challenge and am eager to assist in assessing new opportunities and bringing Azco's assets to fruition. Pierce and his team have done a terrific job over the past several years. With the Summit silver-gold deposit now ready to proceed to development, and the Ortiz gold project in the pipeline, I believe the company is poised for significant growth. These are exciting times for our industry and for Azco Mining and I am pleased to contribute to the company's future success for the benefit of all shareholders."
Dr Jack Frost's prestige and resume of a mining heavyweight are unique in the World of mining, and we believe his appointment to Santa Fe's Board of Directors will more than likely be part of key developments for SFEG, in its transition to becoming a mid-tier miner in time, as it builds up its Gold and Silver reserves, to what we foresee as being at least 5 Million ozs of Gold and up to 100 Million ounces of Silver or greater, as reserves and opportunities present both through its organic growth, and new acquisitions, which have been indicated in recent press releases for some time now and strengthen our view that SFEG should be "bought in anticipation of future events" and its prospects going forward, where the fundamental gains and optimistic outlook, bullishness on the company's future are just about the best indication of better things to come.
Such recent positive commentary by management, speaks volumes for SFEG's promising future.
Still, in reviewing independent reports on Santa Fe Gold Corp it does appear as if generally very conservative methods have been utilized to deduce such lower valuations, which make near-term targets quite conservative and appear to carry very little, if any premium for the real potential of what a particluar part of Niehauser's report describes as a 'Major Gold Discovery' at either site, especially the Ortiz deposit, already containing 2 Million ounces of Gold, which we believe could be the wild card to SFEG's organic growth, and potentially increasingly, and more realistically, could lead to very much richer valuations that'll most likely be found in its existing properties and which incidentally contain real, fully exploitable values approaching $5.5 Billion.
It should also not be lost on mining investors the often unrecognized fact almost all significant deposit ever discovered or identified, ultimately yielded far greater reserves than initially felt.
Niehauser's report also describes the mismatch, or gaping disconnect, between current pricing, and the company's longer term valuations. In just the same way as speculation sent prices of tech issues to such incredible values, based on future expectations causing many Gold issues to be overlooked at the time, for their hidden in-ground values, with little realization for the very fact, that SFEG might have the potential to one day, on soaring Gold prices produce revenues of up to $250 Million and perhaps a net of $185 Million, the real of possibilty of $20 per share or more becomes increasingly credible. SFEG encompasses all, for a long term call option on Gold.
Santa Fe Gold Corporation
One of the Most Undervalued Assets of our time...
If the Summit Silver-Gold Property, were to produce say: $20 Million in net income for SFEG, then how high should its valuation be, especially in light of its four advanced stage projects and immense inground reserves in the Billions? With prospects of the Ortiz production potential of upwards of 200,000 oz per annum in the not too distant future, it very soon begins to dawn, as to how any such an incredible leverage of $100M in net income could become apparent: That could increase initial potential revenues of up to $2 Million a month, from the Summit, to in time monthly net income gains in the realm of $5 - $10 Million, as Ortiz moves to into full production.
Many companies on Wall Street have experienced heady valuations based on expectations of future profits and yet SFEG seems to have been a victim of reverse psychology, at least for a while, but with pre-production of Gold, now at hand, it can project future revenues and has the added benefit and potential safety net, of holding immensely valuable, underwritable assets...
Santa Fe Gold Corporation
An Anomaly in Undervaluation...
"Great investment opportunities come around when
excellent companies
are surrounded by unusual circumstances that cause
the stock to be misappraised."
Warren E Buffett, Oracle of Omaha
And this may be one unique way to really sum it all up for Santa Fe Gold: Borrowing that famous line from the movie Forest Gump: "Life is like a box of chocolates you never know what you're going to get" may have many interpretations for Santa Fe Goldcorp, because as a buyer of Santa Fe SFEG today, you not only actually know "What you are going to get" ie a state of the art full production mining facility, capable of producing about $5 Million per month in cash flow, but you're also getting upwards of three million ounces of Gold based on new aquisitions, by many measures, extremely undervalued at current prices. However, once you get past the first layer of chocolates, that's where the 'unknown future upside' begins to get a little more enticing, because the second layer could represent some major new discoveries from existing properties and those recently acquired and then there is still a third layer depicting aggressive new acquisitions it seems as if there will be a lot to Santa Fe's unfolding new life ahead of us...
One way to illustrate or portray SFEG's value might be as viewed upon by a centimillionaire intent on potentially multiplying his or her or net worth. Obviously, the prospect of acquiring a company valued in the billions in terms of its inground reserves, that can only get a whole lot more valuable in time at such a current dramatic discount to its real asset values, would have to be irresistable to those who understand, how rapidly such valuations could change. And at this point in time, those asset values could increase drastically, in the event of a hyperinflation that could unfold due to recent Trillion Dollar Bailouts. Isn't this a mantra of Warren Buffet himself?
And what might impress the Oracle of Omaha most about Santa Fe? Were he to look it over? Probably how Santa Fe recently recently eliminated $6.26 Million in debt and booked a net gain of $4.6 M. That would take the equivalent of about $110 M revenues for a company like Exxon Mobil to generate in total to net $11 Million to the bottom line and some $62 Million to gain just $6.2 Million net. The big difference with Santa Fe may be how revenues of $62 Million will in all probability be capable of generating some $40 Million net to the bottom line. The question then might be: Which company would you rather own: You don't have to be Einstein to answer that one. Such performance commands a premium in the marketplace derived from a combination of Accelerating Revenue Growth and earnings multiples based on potentially higher margins than Intel or Microsoft. Bringing into production any major mining project under budget and perhaps ahead of schedule also commands additional premium, because if that enures to one quarter's worth of revenue, that should immediately be reflected in the stock price to the tune of say 5 cents per share at 20 X Earnings, would be worth One Dollar per Share to SFEG. So Santa Fe is different... Eliminating $6.26 Million in debt and adding the equivalent of $4.6 Million in gains is a significant achievement and potentially worth nearly $2 per share. Thus part of SFEG's appeal may lie in it's hidden future valuation power and the fact that its operating margins are more than likely to be significantly greater than the average company out there and those margins could greatly increase with substantially higher metals valuations, such as Silver north of $20 per oz. Production costs would shrink relative to output, to the point that at $60, output cost would be minimal and SFEG's margins could potentially exceed 70% or even more per project.
Santa Fe Gold Corporation
Sooner or Later Wall St Always Finds Real Value...
In the nearer-term future SFEG could begin to command an increasingly appreciating premium for these following important contributing additional valuation parameters the most significant of which will be, SFEG's Accelerating Revenue Growth or ARG: Once revenues begin to flow, they are very likely to accelerate dramatically in the initial quarters of production, continuing to grow over time, especially as new production and projects come on line and as production increases and efficiencies improve, so will those margins. And that in-of-itself should command some very substantial additonal premium, as it translates to the bottom line. And obviously, the higher metal prices rise, it will also impact future profitability and greater premium. But, that's not all. As SFEG continues to deliver on its promise of future growth and prospects, that should begin to create additional premium in the stock price, as heightened anticipitation of slated new ventures begins to manifest, and finally the recognition of SFEG's massive inground reserves and their monetizable potential, should help to create the overdue inflated premiums that SFEG so deserves. With such long overdue premiums, increasingly delivered, for any prospective new acquisitions that could come, potentially creating a speculative premium based on prospects of acquiring additional new and valuable acquisitions. So, the stage is set. These are all scenarios that could drive valuations of SFEG significantly higher over time in a classic bull market move.
Investment Intelligence Research
The Power to Make You Money™
A Contender For 'Stock of the Decade'
No company can be a contender for Stock of the Decade, without all the right ingredients. In assessing any equity's prospects the all important question is always: What's my edge? In the following pages, we will endeavor to explain the uncommon number of edges that this company holds what makes it such a contender and why we're making this major call:
Rarely does as compelling an opportunity as this ever come our way, but in introducing this idea to you we will leave you with two thoughts to ponder as you begin to learn more:
1. If this issue performs to expectations in a flat market for Gold you will probably deeply regret not buying in at current levels of around 60 cents or so, looking for multiple gains...
2. But should it outperform or exceed expectations in a raging bull market where a $2,000 price might mean a $20 stock, $3,000, $30 and $4,000, $40 you will never forgive yourself.
3. In the late 1970's a few select Gold issues rose as much as one thousand fold higher. One issue rose from $0.40 cents to over $560 and some others even exceeded such gains.
Right now, gold sells for around $905 an ounce.
But what if you knew about the factors at play, happening this very moment, that could soon make the $1,000 mark look like pocket change? Now: Just look at what could happen in near the future...
GOLD IS GOING TO MOVE SUBSTANTIALLY HIGHER
SOONER...
Just look at how uncannily we're in total synchonization with this chart - Whether 2009 corresponds to 1978, or counting the start of Gold's Bull move from 1999, either way, we are either accelerating from somewhat of a more gentle ascent of Global Investment Demand's phase to perhaps some time over the next year or two, we will likely be transitioning into the Popular Speculative Mania Phase, as Global currencies weaken in what is shaping up to be The Greatest Bull Market of all time. Either way Gold looks poised to rise very substantially higher... If we peak later in 2013, in all likelihood it just means the Bull Market will be longer and stronger:
OR LATER...
20081216 428 chart2
During the great gold bull market of the 1970s, the average monthly gold price increased from under $35 to over $675 an ounce... representing a 1,833% gain and it actually peaked at $875, thus exceeding even the gain registered on the chart indicated above.
Now gold prices at $5,000 may seem like a stretch, especially considering the metal didn't spend much time over $1,000 last year, but with the economic similarities to what happened in the 1970's, only potentially many times worse, the prospect of $5,000 Gold is not only plausible it's becoming increasingly probable each day. And why? The Federal Reserve is inflating to the power of 10:
So if Gold can rise 500% ~ 700% over the next few years, highly leveraged Gold stocks like Santa Fe could rise many times more.
An Extrapolation of Gold's future price based on it 1970's stunning performance
And if we are:
How and why Santa Fe Gold SFEG could outperform Gold's price increase many fold...
We strongly believe this issue has the potential to exceed all expectations and that's why we are making this call and why we are going to such lengths to explain and support this.
In the '70s Gold boom we had the good fortune to know a genius trader who took on a rare assignment: Helping 15 friends and associates follow his guidance, starting out with only $20,000 and 15 months or so later, turned that amount for each of them, into $1,600,000...
That actually happened, almost exactly 30 years ago, ahead of a 4.5 fold increase in Gold, in the wake of a huge stimulus by the Federal Reserve not unlike we are witnessing today
wherein, the Fed just declared it will do: "Whatever it takes" to re-ignite the economy and already, the amount of stimulus is many times that which was applied in the late 1970's...
8,000% returns back then, involved futures, constant attention and exceptional expertise.
We already deliver this kind of constant attention, routinely 24/7, over our Global Advisory Service and we have scored exceptional gains in Gold for our subscribers since inception.
The Buy and Hold alternative, is to find the right company to invest in, so highly leveraged to any increase in the price of Gold, it could experience exponential upside gains of 5-10 fold if Gold stays at current levels and perhaps as much as 20 fold gains, should it double.
This alert is to prompt you to act now, before the market really takes off in earnest, just as it did 30 years ago, this December, when Gold began to take off and never looked back.
So far, it's almost exactly the same: Gold has already risen over $100 in December and we already called the lows to the exact day, December 5 and the last 3 times we called major lows in Gold was June 2005, 2006 and August 16 2007 all ahead of major upmoves in Gold and enabled us and our clients to partake of a 2,300% upmove in one particular Gold play, that over a nine month period, was the Number 1 mining stock gainer in the entire World...
According to some of the most prestigious and highly regarded analysts Gold prices could be headed for $1,000 soon and even Citibank says it could blast through $2,000 next year:
They also believe as we do, that Gold shares will benefit to a greater extent than the Gold price itself in the next moves up. In particular, they feel that soundly based junior mining companies will benefit very significantly in what could be Gold's strongest upcycle ahead.
The strongest trending market in this decade has been Gold, so it is no surprise, that our contender for Stock of the Decade, is also a Gold, Silver and Diversified Mining entity that is very highly leveraged to the price of Gold and thus holds exceptional upside potential...
Especially if Gold begins to accelerate exponentially higher, just at it did thirty years ago, and given the Dollar's recent largest weekly decline ever, it may well have already begun.
And in light of this, what draws us so compellingly to this emerging standout issue, is its unique appeal of being so close to ramping up to full production, meaning its earnings will begin to soar even if Gold were to stay at the same price over the next year our contender could theoretically rise 10 fold as it earns its way higher to full production and potentially can comfortably, net a $500 profit, for every ounce produced. So, we see this situation, as somewhat of a unique way to outperform most other entities or ways to participate in any increase in the Gold price with relative safety, versus futures or options and the like, and there is one added bonus with this issue it's continuing to grow its value through periodic acquisitions and also through potential discovery of additional reserves. This is really the best way to not only obtain dynamic exposure to Gold, at a very low entry price of $15 per ounce that's so hard to pass up, it also affords a unique high mark-up edge. Consider this:
How many companies out there have a near exclusive on 24 acquisitions, or could double their value in executing a few of the these same transactions? We know of at least two...
In light of this, we believe the optimum way to participate in the upside of this boom, will be through Gold equities and we are not alone in this view. There is a growing consensus among the experts in Gold, who agree that the most highly leveraged way to invest in Gold is through equities, with no debt that are already producing or are about to, have the greatest upside potential... And, if you need any more convincing, read on and learn what occurred the last time Gold began to soar exactly 30 years ago and how it maybe Déja Vu:
A growing chorus of Gold analysts are predicting explosive Gold price increases lie ahead and we agree, because like 30 years ago, once Gold's uptrend began, it was unstoppable and as you will read later on in this report, some Gold issues rose by as much as 10,000%.
We kind of feel our time may be nearing for several reasons, not only have we called a fair number of upwards of 10,000% upmoves over the past 8 years, along with numerous 50% and 100% plus gainers. But, having also called numerous interim market moves with near pinpoint accuracy, continuing to do so almost routinely, our most important success may yet be, to have inadvertently stumbled on a real potential 'stock of the decade contender'.
So just what makes this potential stock of the decade, worthy enough to be a contender? When measured from its 2003 lows, it has already risen 6,000%, and could rise a lot more:
It's what we call 'Stock Karma': When a company experiences a renaissance, there can be no stopping it. As they continue to execute and grow as many of the greatest routinely do and while they may move in fits and starts, their overall trend moves relentlessly higher. And that's what we have been witnessing with this issue over the past few years. Growth!
Growth in fundamentals, growth in reserves and major progress at every step of the way...
Given all of the above, just how important a discovery might this be and how much more could this relatively unknown low-priced entity actually rise? With our track record of 30 years or more in calling market turns and more recently, leveraging all this into one of the World's potentially most profitable investment advisory services, successively identifying and investing in, a fair number of issues very near their lows, that over a reasonable time, proceeded to increase by as much as 100 fold in value, making numerous millionaires in the process... One might say we already successfully called a few of these in the past and that was without the 20/20 foresight, that this issue currently portends: So if we were to present to you a contender with up to Five times upside or growth potential of our earliest call on one of our best performers, that rose a stunning '90 fold' over just five years and became the 2nd fastest growing company in the US according to Forbes. Would that pique your interest, especially, if it were trading at 100th or so of its intrinsic valuation, akin to buying Gold at $15 per ounce in-ground, and as astounding as that may be, also knows of other similar issues, so undervalued even today, would be akin to buying oil at $1 Barrel.
Unveiling of a potential 'Stock of the Decade'
If you think about it, many of the greatest companies around the World, started out life from the very humblest of beginnings, out of a garage or as a dream of an idea and there's almost always something extra-special, that sets them apart in their emerging years, that along with their vision, determination, hard work, karma and that obsession to succeed, can put them on a path to greatness often against all odds even following major setbacks.
The first thing that set this company apart, was literally, within months of its founding, it made two massive copper discoveries almost overnight and succeeded in selling them both, to mining giant Phelps Dodge for windfall profits of $40 Million. Soon thereafter they were able to leverage those winnings, into aquiring the World's largest Mica deposit and later added the World's largest Micaceous Iron Oxide, (MIO) deposit and a few years later, one of the largest remaining, unique Gold and Silver Grant Reserves, in the United States. With further acquisitions already achieved and more to come, such additional valuation potential, affords this entity, all of the elements to be a deserving contender for this title.
Such a story is now unfolding, that has a rather unusual twist to it. Given the tremendous declines suffered by most of this decade's biggest gainers, our contender's gains have not only remained impressive, but appear poised to accelerate, it could perhaps actually pave the way for this relatively unknown resource company, to potentially not only become one of the very largest gainers of this decade from its extreme lowest point, but in the event Gold were to soar to some incredible heights, it could position our Stock of the Decade as an even more serious contender, to perhaps being one of the greatest gainers of this era.
How? Well, in a curious twist of fate, there was some kind of accidental or rogue trade, that executed at $0.0001, when this particular issue was actually trading in low single cents during a brief period of readjustment restructuring, as it transferred to an exchange temporarily, that today already reflects a massive gain of 6,000%. Slated to soar, up to an additional 10 fold conservatively, or even as much as 100 fold should hyperinflation occur that would mean anywhere from a 60,000% to 600,000% return, or 600 to 6,000 fold gain! And stocks that experience powerful gains, not only have a tendency to continue to build on gains successively the strongest stocks in any downturn usually outperform all others, and unlike almost every other stock out there, since becoming Santa Fe Gold it's doubled.
Right now, this company is poised to earn its way to a 10 fold return, based on 20 times earnings, taking it to $6, as it ramps up to full production within weeks and that would be possible at current prices for Gold & Silver with still a lot more upside as the company is extremely highly leveraged, with significant additional assets that could be brought into major production within a few years and could make new acquisitions adding more value.
This is one intriguing unfolding story of how a little known entity, albeit rather amazingly, was actually founded on a success model of one highly accomplished explorationist and legendary Gold Miner who quite surprisingly returned full circle and is its President today, with added exceptional guidance of one of the most legendary leaders* in mining history.
And it is also the story of how a $40 Million windfall in its earliest days with $4+ Billion in ground assets today could become a $40 Billion legacy company over the next few years.
Investment Intelligence Research
Santa Fe Gold Corporation - SFEG
An Insurance Policy for your Future...
Fmr *President Exxon Minerals Joins Santa Fe's Board
Current Rating: Strong Speculative Buy - World Renowned Mining Analyst - Mike Niehauser
Initial Target Price $3 Current Estimated Valuation Range $7 ~ $13 Net Gold Equiv $18
Emerging Precious Industrial Metals and Minerals Company
Objective To Become A Mid-Tier Mining Conglomerate
Many parts of the following report were originally written over recent past and have been periodically updated since. A year ago it was very hard to visualize the fundamentals that might cause Gold and Silver to skyrocket, but now with some $10 Trillion Worldwide being administered to try and avert a financial meltdown, new lows in the US Dollar Index could be expected over the coming years and already several highly credible forecasts are now calling for Gold to soar to anywhere from $2,000 to $6,000 over the next year or few. That would equate to what happened almost exactly 30 years ago following a massive reflation by the Federal Reserve in the late 1970's, Gold soared 4.5 fold over about 13 months and some Gold stocks soared from as low as 40 cents to as much as $500 per share. And just factoring inflation over the past 30 years, the real intrinsic value of Gold today is really a lot closer to $3,150, therefore it may not be long, before the markets soon play catch up.
Super-Bull Gold Market Redux
A Brief Outline of Possibilities That Lie Ahead:
In 1970 at $35 per Oz Gold wasn't on anyone's radar so its tiny share of Global financial assets was barely noticeable. But one decade later that had grown to 34% of the Global financial pie, following a stunning 25 fold increase to $875 and 50 fold increase in Silver and just as happened during 2008, the effects of Oil's huge run up in price, is very likely continue to permeate the economy and could well be translated, into a sustained rise in Gold and therefore, we believe that with a money bubble in play, Gold's turn will be next and the potential 30% plus share it accounted for as part of the S&P 500 could come from a literal tidal wave or tsunami of buying from around the World, as a contra-currency play. Gold is exhibiting all of the hallmarks today, that it's poised for further bull market gains:
The next super-bull market that maybe, is already happening before our eyes. It is already an indisputable fact that Gold has not only held its value or soared against most all other markets in decline... It is still one the strongest markets of the decade, versus almost all others, especially in how rapidly its prices have soared over recent years tracing out day after day and emulating what happened exactly 30 years ago, ahead of massive multifold price increases as back then and over recent years. Can lightning strike twice and history repeat? If it does Gold is headed for $4,500 and Silver could hit $300. You say it can't happen? Here's a hint as to how it could: In 1980 the entire total Global market value was about Three Trillion Dollars... Today, it's $50 Trillion plus and there are tens of thousands of Centi-Millionaires and thousands of Billionaires, who are potentially prime candidates to purchase unfathomable amounts of Gold for their own financial security and wellbeing, having for the first time felt their own wealth could somehow be threatened by inflation, or some other catastrophé, not to mention the recent Worldwide meltdown, or worse still. Most Billionaires have lost 50% of their net worth. They all must be wishing, including the super-rich of the Middle East, if only they had bought Gold, or switched out of Oil at $147.
Not to forget super rich oil nations with Sovereign Wealth Funds, who like China are still piling up Trillions in hard currency, with hardly any Gold reserves to speak of, such that if they decide to increase assets, by just a few percentage points, it could up-take years of Gold supply, just to satisfy their demand, let alone reserves of newly bulging coffers of a magnitude of accumulating record cash reserves around the World, that could go for Gold.
Right now, as in the early 1970's, the actual percentage of the Global Financial Pie, at a fraction of that $50 Trillion total is so razor thin, you can hardly see it on a pie chart, but in a few years time, with all the money creation that has unfolded, that could easily swell to those historic high levels of 30% plus, in the kinds of cyclical anomalies, that tend to occur every few decades, in times of extremes or stressful periods in financial markets. And this time around it's just plain not going to be your father's Gold market anymore, because the World is running out of Gold and so hoarding could become the major factor. Therefore, we believe this Gold bull could be some 4 to 6 times as large, as 1980's highs.
An Introduction to
Santa Fe Gold Corporation
A Compelling Strategy To Leverage Gold
Latest Developments... Please visit www.santafegoldcorp.com to view numerous images of mine development & ongoing progress:
Visitors to the mine site, have reported being singularly impressed with the excellent progress on this new state-of-the-art production facility that is reportedly well under budget and maybe be ahead of schedule, bringing prospects of Gold-Silver production, ever closer.
Timeline of Progress at the Summit Silver-Gold Mine
Feb 7 Santa Fe Gold Begins Construction of Summit Silver-Gold Mine
May 29, 2008 - Santa Fe Reports Progress on Summit Mine
Construction is well under way at the Lordsburg Banner Mill Site and is being carried out by an engineering firm and other contractors, under the supervision of the company's project manager and independant engineer. The site has been prepared and contoured for drainage. The company will be in a position to begin underground operations as soon as the mining team and equipment are in place. Major road and pad preparation at the mine site has been completed. Everything's go.
New Valuation Update: Newmont's takeover of Miramar Mining in the fall 2007 potentially values Santa Fe Gold at $5 per share, hands down, without any additional premium for its additional exploration upside potential or its deserved premium, for imminent production.
Newmont's takeover is a game changer raising Gold valuations from $105 to $150 per oz for in-ground reserves, with no production or revenues, but Santa Fe is now beyond that. As we've said for some time, long overdue given Gold's increase, but what did they really get? They already got windfall gains in Gold and potential Billions in unrealized gains free and clear, so that if similar gains were applied to Santa Fe, they'd equal $450 Million or about $5.62 per share, without any additional premium, for its very near term proximity to production potential and critical valuations, for bankable feasibility studies.
Santa Fe Gold received $13.5 Million to bring the Summit into production operations in an exceedingly investor friendly transaction that may actually be a nearly unprecedented premium of some 2.5 times the 40 cent share price it was trading at upon execution at $1 per share. Why would one savvy investor beat out competing offers in what appeared to be an oversubscribed offering for $13.5 Million, at an what may be close to an all time record premium? Because, they must have concluded how undervalued Santa Fe may be today given the growing reserves of the company and upside exploration potential that could reveal millions more ounces in situ, it would be akin to buying Gold at some $15 oz that in a few months time, Santa Fe could be netting up to $500 per ounce net and that down the road, the company has the potential to earn upwards of $1 per share, or more...
For some perspective, that is akin to $40 Dow Industrial Company, getting funding at $100
June 03 2008 Santa Fe Gold Agrees to Purchase Processing Equipment and Real Property for Summit Silver-Gold Project
ALBUQUERQUE, N.M. – June 3, 2008 – Santa Fe Gold Corp
(OTC Bulletin Board: SFEG), a U.S.-based mining and exploration enterprise focused on gold, silver, copper and industrial minerals, today announced that it had entered into a definitive agreement with St. Cloud Mining Company ("St. Cloud"), a New Mexico corporation, to purchase St. Cloud’s mineral processing equipment and real property situated adjacent to the company’s Banner Mill site located south of Lordsburg, New Mexico. The purchase price is $841,500. Closing of the transaction is targeted for June 30, 2008.
Dr. W. Pierce Carson, CEO, said, "The equipment we are purchasing constitutes key remaining components required for our Banner Mill processing facility, notably a crushing and screening plant and a feeding and conveying system. Crushing and screening will be the first steps in processing Summit ore. After crushing, the ore will be sent via the feeding and conveying system to the ball mill for grinding, followed by froth flotation, to produce a saleable precious metals concentrate. We previously acquired the ball mill and flotation sections of the processing plant."
The real property included in the purchase consists of 70 patented and 5 unpatented mining claims, and assignments of mineral leases covering 17 patented and 6 unpatented mining claims. These mining claims and mineral leases, together with the patented claims the company already owns in the area of the Banner Mill site cover approximately 1,500 acres (2.3 square miles) comprising the core of the Virginia Mining District.
Dr. Carson said, "Historic production from the Virginia Mining District is estimated to total 216 million pounds of copper, 8.5 million ounces of silver and 297,000 ounces of gold. At today’s metal prices, this past production represents a value of over $1.0 billion.
Santa Fe Gold Updates Progress of at Summit Silver-Gold Mine
ALBUQUERQUE, N.M. – September 29, 2008 – Santa Fe Gold Corp (OTC BBoard: SFEG)
, a U.S.-based mining and exploration enterprise focused on gold, silver, copper and industrial minerals, today reported that construction is on track at its Summit mine and processing facilities in southwestern New Mexico and that processing of silver-gold ore is anticipated to begin the first quarter of 2009. In February 2008, the company announced it was proceeding with mine and mill construction, following the completion of $13.5 million of required financing.
“We are pleased to announce that we are on track to achieve our twelve-month construction schedule”, said Dr. W. Pierce Carson, President and CEO. “We plan to have an initial ore stock pile ready for processing when construction of the processing facility is completed and is ready to receive ore. Based on current outlooks and barring unforeseen delays, we anticipate processing to begin in the first quarter of 2009.”
At the Banner mill site, work is being carried out by a force of approximately 40 people coordinated by a lead engineering and construction firm under the supervision of the company’s project manager and independent engineer. All of the major items of equipment to be installed during construction are onsite at the mill site. Refurbishment and installation of the ball mill, flotation plant, and crushing and conveying system are underway. Upgrades of electrical and water systems also are in progress.
At the Summit mine, the company has hired its own mining crew and purchased all the necessary surface and underground mining equipment. Development of an underground decline has begun and is projected to intersect the main ore zone in December 2008.
The company also has made good progress in identifying and hiring the work force for operations, and currently employs approximately 18 people dedicated full time to the Summit project. Although it will be necessary to hire additional people, key management positions have already been filled and core operating personnel have been employed for both the mine and the mill. Carson Added:
“Our entire team is excited by the progress we are making at Summit. We are totally focused on achieving production as soon as possible. Ahead, our goal is to produce significant cash flow from current holdings while creating a portfolio of quality exploration and development projects that will ensure future revenue growth. We believe the company is well positioned to take advantage of the current attractive gold and silver prices and to increase long-term shareholder value.”
Newsflash Full Gold Production output imminent. Summit Mine is ready and all indications are the Gold vein is about to be reached enabling production to begin 24/7 and significant revenue generation from a standing start, that should equate, to $3 Million Gross monthly and $2 Million Net or some $0.25-$0.30 per sh, effectively valuing Santa Fe Gold at $5 - $6 per share at 20 times earnings, but SFEG's margin premium could drive PE's a lot higher...
Santa Fe Gold Corporation
Investment Opportunity of a Lifetime
Formerly known as Azco Mining Inc., having changed its name to Santa Fe Gold Corporation, in early September 2007, to better reflect its now significant ownership of some of the most prospective Gold Silver and Copper producing areas covering New Mexico, with particular emphasis on the 57,267 acre Ortiz Deposit's proximity to the historic city and state capital of Santa Fe and associated folklore that boasts a history of Gold discoveries as far back as 1535, when fabled explorationist Cabeza de Vaca's made his earliest encounters with Gold in the Ortiz Mountain ranges estimating significant Gold production over the past few centuries, enough to entice even the great Thomas Edison himself to prospect in the Ortiz which produced 360,000 ozs of Gold more recently.
Perhaps the best way to appraise SFEG's prospects might be to recount one renowned Gold Analyst's summation of the company in his comprehensive initial report as "Having all of the important underlying characteristics, of both a good company, and a good investment". "With management having re-structured while still making selective and valuable acquisitions and with the potential to produce cash flow, in the near term. 'The company is not widely known or well understood and its value has not yet been fully recognized, creating a discount in its share price, and a significant disconnect from its large asset values'. A number of significant initiatives are in progress, that will advance both the company, its prospects and visibility as a great investment for the future."
Santa Fe Gold Corporation
One of the most highly leveraged asset plays ever...
Major Buy Alert: We actually published this on Septemeber 11 2007, as SFEG was temporarily depressed, as we strongly believed presented us with a superb buying opportunity at the time.
"Over coming months Santa Fe Gold Corp SFEG will slowly begin to separate itself from many other Gold market hopefuls and pretenders, to one of becoming an actual Gold Mining company poised for large scale Gold and Silver production, offering potential for truly tremendous upside leverage in Santa Fe Gold's price, because over recent years we've observed similar entities to move very strongly, soon after announcing final pre-production feasibility studies as SFEG had done, articulating its plans to proceed with full production at its earliest possible opportunity."
Little did we know at the time how just how true this statement would become just a year later in how dramatically Santa Fe has already differentiated itself from most other Gold contenders and that's without rising to anywhere near the current analyst's ratings of $3 per share for this issue, which would represent upside gains of some 600 per cent, from SFEG's current levels...
With Gold analyst Mike Niehauser's industry envied reputation for finding numerous unknown Golden opportunities, his comparison of SFEG with some of his major finds of recent years that enjoyed runaway moves in excess of 1,000%, clearly sees Santa Fe as a standout opportunity with the potential to emulate his earlier successes in due time, with Santa Fe Gold's potential to gravitate to a mid-tier mining conglomerate, as it begins to bring its additional major projects into production in just several years hence. At the same time, he meticulously assessed SFEG's inground values at close to $10 and put out an initial buy target of $3. He also pointed out that it might take some time to get to $3, before his institutional clients were convinced, but he was confident that this will come to pass in due course. We second his opinion regarding Santa Fe Gold as potentially the next big thing, and given its immense in-ground reserves and the high potential for significant on-going discoveries, in one of the few remaining and apparently fairly unique 90 Square mile sized prospective areas, that can still be found in the entire US. When described as 'Geologically Superb', for additional upside exploration with such a rich history and folklore of a 'Gold Rush' past and just recently having uncovered several hundred million dollars of additional recoverable Copper on-site, its hidden values do appear to be indisputable and that could include the additional discovery of several million ounces of Gold, given geologic potential appeal of the area and the fact, only a very small portion of the property is yet proven.
Thus we believe SFEG undervalued enough, it's akin to turning back the clock as being able to buy Gold as if it were still below $400 per ounce... But in effect, at today's extreme discounted values, its way better than that, because Since Santa Fe by any number of measures is trading at a compelling $4.50 discount, in reality you're buying real reserves of Gold at $15 per oz with a net value of $450. Thus we view a discounted SFEG, as a long term option, on a future of Gold.
Santa Fe Gold Corporation
Takeover Potential and Valuation Rationale...
With Santa Fe's Summit Silver Gold now poised to begin production, verifying that this venture is not only bankable, but on track to begin profitable mining operations, leading to a multi-year output of Gold and Silver. Already under budget and in expectation of what are believed will be excellent margins at current Gold and Silver prices and with expected strong cash flows to afford all of the potential to leverage SFEG's ability to move increasingly rapidly, to bring on both of its two open pit deposits, as well as the underground Ortiz Goldfield's Deposits into full production. Additional acquisitions potential, could increase the way to annual production of hundreds of thousands of ounces of Gold, potentially valuing Santa Fe, at many times this price.
Given all of the above, the day is not so far off it seems, when SFEG could conservatively be earning upwards of a million dollars a month, just from the Summit property alone, such that even if prices for metals were much lower. But with higher prices, a million and a half, to two or more a month, could occur, as production efficiencies improve or additional areas are exploited.
Prospective investors and shareholders should well bear in mind that when SFEG first initiated negotiations to acquire the Summit Silver Gold Mine, the price of Gold was near $400 per oz and Silver was closer to $7. So, with prices today nearer $800 and Silver prices having almost since doubled, it stands to reason that if the outlook for the Summit looked so good at $400, then higher margins today must be substantially more attractive rendering it a compelling buy.
Santa Fe Gold Corporation
Awesome Technical Expertise and Mining Experience
Can a relatively unknown emerging Gold mining conglomerate, under leadership of two of the more accomplished explorationists of our time, along with its veritable dream team of Gold and Silver mining consultants, counting hundreds of years of combined experience emanating from Chapman, Wood and Griswold, Inc of Albuquerque New Mexico and the Minerals Advisory Group of Tucson Arizona, numbering more, along with its recently hired management and technicians.
Technical Team
Chapman, Wood and Griswold, Inc., Albuquerque (Summit)
Mining and geological engineers, firm established 1947
Doug Irving, P.E., President
40 years experience in underground and open pit engineering and mining
Jack Burgess, P.E., Mining Engineer
35 years worldwide experience in underground operations
Minerals Advisory Group, LLC, Tucson (Ortiz)
Technical and financial advisory service to mining industry
Peter Crescenzo, P.E.
Ex-VP Engineering for Newmont Gold Corp., 45 years experience
Martin Kuhn, P.E.
Senior Metallurgist, 40 years experience
Scott Zimmer, P.E.
Senior Mining Engineer, 30 years experience
Robert Shantz, P.E., Metallurgist (Summit)
Cimetta Engineering and Construction Co., Tucson (Summit)
Patrick Freeman, Summit Project and Mine Manager (Summit)
Patrick Freeman is also President of St Cloud Mining and Exploration
Gary Richardson, P.E., Metric Corporation, Albuquerque (Summit)
And along with all that, arguably going on $5.5 Billion in proven in-ground reserves, huge additional major discovery potential, along with multiple acquisitions upside, Santa Fe appears poised to soar many fold in the coming years, as it leverages this highly experienced resource.
The value is already clearly there. The question is: Can it happen? Well, it's happened before...
Re: Accomplished Explorationists - See Dr W Pierce Carson Bio below, plus references to his numerous discoveries and 24 identified properties brought to Azco upon engagement plus immense portfolio of discoveries by Dr Jack Frost, fmr President Exxon Minerals
It happened for us, with Headwaters HW from $0.50 ~ $45, and also with US Gold UXG from low double digit cents to as high as $10, sold around $9 and Bema Gold BGO and Agnico Eagle Mines similarly. All of which we purchased near their lows of 1999 and 2001. How many other analysts on Wall St., can truly be credited with identifying not just one or two issues that later actually rose almost 100 fold in less than 6 years, but as many as half a dozen? The seeds of the next bull market are already happening today. On November 21, 2008 our advisory service not only called the lows, but within our universe of momemtum recommendations, so far, there have been six hundred percent gainers and several multi-hundred percenters have already unfolded. You can probably count Wall Street analysts of equal on one hand but the fact and key difference is, we count as one of those analysts and we are firmly convinced re Santa Fe Gold...
Maintaining conviction for any stock can be hard: You have to stay resolved and believe in the management's ability to execute and deliver no matter what. But when management continually suprises with unexpected acquisitions that continue to add immense potential value eliminating debt through frugal operations and cost-cutting, to bringing in projects under budget as well as under promising and over-delivering: This is a formula not only for success, but a premise to 'invest big'. Our mantra that has served us well in the past and enabled us to find big winners...
Santa Fe Gold Corporation
One Investment With Exponential Upside Potential...
Santa Fe Gold's recently updated research reports, with initial low end value targets of $3 may be the first significant step towards what we foresee as a series of ascending future waypoints that will bring it closer, to its truly more realistic valuations of $7-$10 and later $18, as being the current net value of its in-ground reserves of Gold, Silver and Copper. The big question is what if, Gold were to double or more over the next year. What impact would that have on Santa Fe Gold? We believe it would have a very significant impact. In fact we've already done the homework for you. In many ways, we feel we are in a timeline, not unlike the early 1970's. In fact, 1972 was a year of significant inflation, not unlike 2008 and at the time Gold was trading at between $70 and $90 and Silver was around $1. By 1974 Gold had soared to over $200 per ounce and Silver $6.43 per ounce. Interestingly, if you add a zero to the price of Gold & Silver back then, they equate to where Gold and Silver are trading today and it makes a lot of sense as most items from those early Seventies, are trading at around ten times their value today, from houses to cars and almost everything else. What is intriguing, is that even though Gold did pull back into an interim low in 1976, Silver did not. It held its gains trading above $4.30 over the remainder of the decade, before it soared to its staggering all time record high of $50 in 1980...
The implications of this are compelling because should Gold and Silver emulate this behavior, it could set the stage for $2,000 Gold next year and possibly send Silver soaring, as high as $65. If history were to repeat, that could mean that Silver might hold its gains above $45~$50 for the most of the next decade and given the previous all time high was $50 that might imply how such a previous resistance level might actually become a future support level for Silver, in time.
That would have a very significant impact on Santa Fe Gold, because its mines contain a great deal of Silver and such dizzying prices could actually add multiple billions of dollars to its value and with the added production from the Ortiz accounting for several hundred thousands of ozs in Gold equivalent, the potential for Santa Fe Gold to earn multiple dollars per share would also be likely and could thus value the company at very significantly higher levels approaching $40 and with two dozen additional acquisitions on the cards, Santa Fe's ability to quickly build up a huge new reserve of Gold, Silver and mineral properties, values could rise very sharply higher.
This is what we foresee today, as Santa Fe's growing world class properties become monetized:
However if recent strong statements by its CEO come to pass whereby he and Dr Frost combine forces in a major exploration and multi-million million ounce acquisition binge, then along with our longer term price forecast for Gold at $1785 and Silver as high as $120, going on $300 as extreme as that might be, yet albeit conceivable... Our longer term objective for Santa Fe Gold Corp at nearer $100 share price, becomes less of some fantansy. It could indeed come to pass. And before you call me a crackpot for saying so, I've already done the homework and the facts state that if metals prices do indeed soar, Santa Fe could soar twenty to thirty-fold fairly easily.
That is what today makes Santa Fe Goldcorp such a compelling investment proposition. We can already see the future clearly enough to warrant some twenty times upside from current levels, that could potentially put SFEG at upwards of $10 over the next 18 months to 2 years, however, with likely prospects of extremely sharply higher metals prices still possible and with increasing production both from the Summit Silver and Ortiz Gold mines, revenues of as high as $100 Million cannot be ruled out, and thus any additional upside, from advanced exploration to new acquisitions with near term production potential, could drastically increase valuations as any serious addition to current reserves beyond 5 Million ounces would be the icing on the cake.
So, knowing such a possibility clearly exists, with the prospect of say half a dozen acquisitions out the 24 or so that are currently under consideration, at some point, beyond the next addition some speculation in anticiapation of additional acquisitions is like to add a significant premium to Santa Fe's share price, espeicially against a backdrop of soaring metals prices. So now it is less of a head scratcher and a whole lot more logical, as to how in the World a stock like SFEG could ever go to $20, $40, $60 or higher. 5 Million ounces at $2,000 Gold would value Santa Fe at well above $10 Billion, if you include its other properties already valued well in the Billions. But, imagine what a $60 ~ $120 Silver price could do for Santa Fe. That could multiply up to 60% of Santa Fe's assets five to ten fold, putting valuations north of $20 Billion. In the ultimate event Santa Fe achieves its goal to be a mid-tier mining conglomerate, with say 10 to 15 Million ounces of Gold in reserves, then that long shot to become a $40 Billion entity, could be possible.
Understanding SFEG's potential upside and how such a dramatic price rise could actually unfold are now clearer to see in how Gold and Silver prices could play such a huge role when viewed in the context of a potential multiplier effect that any addition of new reserves would be likely to produce. Many investors may not completely appreciate just how extremely highly leveraged SFEG truly is, in light of this and added to that: With only the reserves we have todat that with the Virginia Mining District acquisition, the impact of Silver and Gold at just two or three times today's price alone, might have on SFEG's already hefty inground reserve values at around $5.5 Billion, or $73 per share. A doubling of metals prices alone would add $1.5 Billion net or $20 per share, but a tripling or quadrupling of Silver prices could add billions more and net revenues could literally explode, if we only were to repeat Gold's 6 fold or Silver's stunning 10 fold plus performance from June 1977 through January 1980, SFEG's 'net' revenues could potentially expand to more than $100 million, just off the Summit alone... Imagine how they would soar if Ortiz went into full production with output of 200,000 oz per annum at $2,000 per ounce Gold...
Santa Fe Gold Corporation
A Compelling Investment For The Ages...
What investors should also keep at the forefront of their minds as they peruse this report, is that in due course, Gold and Silver could soar, and become amongst the greatest bull markets of our time, to levels that might be hard to visualize right now because if the old highs of $1040 are taken out, we'd expect at least an eventual more than doubling of Gold prices towards our target of $1,785. Some say Silver could even rise as high as $300 based on theories that adjusted for inflation, Silver eclipses its multi-century former highs and is an industrial metal. We're just trying to appraise you of what we feel could occur, in the event of a super bull move.
Gold analyst James Boric describes the coming stage 3 Gold Rally, of such a potential up-move:
The most profitable stage of the Gold rally - Stage Three - has not yet begun, but during such times it is possible to make exceptionally large percentage returns as previously occurred back in the 1970's...
To understand what this unfolding phase might look like, consider the gains in these Gold equities then:
* Bankeno Resources Corp rose from $1.25 to $430 a share
* Resources Corporation rose from $0.40 to $560 a share
* Steep Rock Resources rose from $0.93 to $440 a share
* Mineral Resources rose from $0.60 to $415 a share
* Azure Resources rose from $0.05 to $109 a share
* And Leon Mines rose from $0.05 to $385 a share
With a preponderance of Silver and a very low cost of production estimated at $2 per ounce, Santa Fe's Summit Silver and Gold property could be extremely profitable with sharply higher Gold and Silver prices: At $25 The Silver-Gold Summit could earn upwards of $3 Millon per month or $30 Million pa or more.
That could equate to $0.40 per share which at current peer valuations would equal $60 per share.
Given all above, the need to stay focused on the potential for 100 times upside, is paramount. Not because it will happen, but because it could happen and thus it is wise, to be well prepared.
While Mike Niehauser's 'Strong Speculative Buy' Rating a new high target of $3 is impressive enough: A closer interpretation of asset values reflect the Summit project conservatively valued at approaching $100 Million or $1.29 per share and with SFEG's own press releases, initially valuing Summit at $250 Million or in-line with industrial valuations at $3.15 and the larger Ortiz closer to a $475 Million valuation or $7 per share, just based on the first million ounce deposit, versus his low end $1.58 value per share, with both Black Canyon and New Planet Project, at a combined $3 per share or so, not only do each of the project's low end values, overwhelmingly underwrite Santa Fe's current share price: An interim waypoint of $5 and later $10 and up have to appear credible and we believe valuations will move higher, as key production objectives are achieved and anticipated new acquisitions are made and brought on line. Santa Fe's recently acquired Virginia Mining District areas could be worth upwards of $1 Billion today based on its past mining production output and additional reserves could be significant and add greatly to Santa Fe's current reserves. We believe SFEG's potential to expand Gold reserves beyond five Million ounces was recently substantially upgraded through naming of the former President of Exxon Minerals to Santa Fe's board who in his own right has a bevy of possible rich acquistions.
Santa Fe Gold Corporation
Unparalleled Management Expertise and Success...
Azco Appoints World Renowned Explorationist to Board
Tuesday May 8, 9:12 am ET
ALBUQUERQUE, N.M.--(BUSINESS WIRE)--Azco Mining Inc. (OTCBB:AZMN - News), a U.S.-based mining and exploration enterprise focused on gold, silver, copper and industrial minerals, announced today that Dr. John E. (Jack) Frost has joined its board of directors. Frost has over 50 years of international mining experience in a wide range of metallic and non-metallic minerals and has been closely involved in the discovery, evaluation, development and/or acquisition of more than 40 commercial mineral deposits.
As principal of Frost Minerals International, Inc. since 1986, Dr. Frost has provided management and consulting services involving acquisitions, minerals exploration and mining. From 1967-1986, he worked for Exxon Minerals Company and its affiliates in a number of senior management capacities, including president of Exxon Minerals International. Frost had major responsibility for establishing and managing Exxon's very successful domestic and international minerals exploration programs, among the largest in the world.
Prior to 1967, he managed exploration and mining activities for Duval Corporation and Philippine Iron Mines. In 1983, Dr. Frost received the American Institute of Mining, Metallurgical, and Petroleum Engineers' Charles F. Rand Memorial Gold Medal for innovative leadership. In 1984, he was honored with the Society for Mining, Metallurgy, and Exploration's Distinguished Member Award. Dr. Frost holds a B.S. degree in mining engineering, an M.S. degree in geology and a Ph.D. in geology, all from Stanford University.
Dr. Pierce Carson, CEO of Azco Mining, said, "Chairman of the board Larry Olson and I are delighted to welcome Jack. We are truly fortunate to have the benefit of his vast experience in the areas of exploration and development of mineral deposits, especially at this critical time in the strategic growth of our company. His advice will be invaluable as we develop our current projects and identify and evaluate future acquisition opportunities."
Dr. Frost said, "I am excited about this challenge and am eager to assist in assessing new opportunities and bringing Azco's assets to fruition. Pierce and his team have done a terrific job over the past several years. With the Summit silver-gold deposit now ready to proceed to development, and the Ortiz gold project in the pipeline, I believe the company is poised for significant growth. These are exciting times for our industry and for Azco Mining and I am pleased to contribute to the company's future success for the benefit of all shareholders."
Dr Jack Frost's prestige and resume of a mining heavyweight are unique in the World of mining, and we believe his appointment to Santa Fe's Board of Directors will more than likely be part of key developments for SFEG, in its transition to becoming a mid-tier miner in time, as it builds up its Gold and Silver reserves, to what we foresee as being at least 5 Million ozs of Gold and up to 100 Million ounces of Silver or greater, as reserves and opportunities present both through its organic growth, and new acquisitions, which have been indicated in recent press releases for some time now and strengthen our view that SFEG should be "bought in anticipation of future events" and its prospects going forward, where the fundamental gains and optimistic outlook, bullishness on the company's future are just about the best indication of better things to come.
Such recent positive commentary by management, speaks volumes for SFEG's promising future.
Still, in reviewing independent reports on Santa Fe Gold Corp it does appear as if generally very conservative methods have been utilized to deduce such lower valuations, which make near-term targets quite conservative and appear to carry very little, if any premium for the real potential of what a particluar part of Niehauser's report describes as a 'Major Gold Discovery' at either site, especially the Ortiz deposit, already containing 2 Million ounces of Gold, which we believe could be the wild card to SFEG's organic growth, and potentially increasingly, and more realistically, could lead to very much richer valuations that'll most likely be found in its existing properties and which incidentally contain real, fully exploitable values approaching $5.5 Billion.
It should also not be lost on mining investors the often unrecognized fact almost all significant deposit ever discovered or identified, ultimately yielded far greater reserves than initially felt.
Niehauser's report also describes the mismatch, or gaping disconnect, between current pricing, and the company's longer term valuations. In just the same way as speculation sent prices of tech issues to such incredible values, based on future expectations causing many Gold issues to be overlooked at the time, for their hidden in-ground values, with little realization for the very fact, that SFEG might have the potential to one day, on soaring Gold prices produce revenues of up to $250 Million and perhaps a net of $185 Million, the real of possibilty of $20 per share or more becomes increasingly credible. SFEG encompasses all, for a long term call option on Gold.
Santa Fe Gold Corporation
One of the Most Undervalued Assets of our time...
If the Summit Silver-Gold Property, were to produce say: $20 Million in net income for SFEG, then how high should its valuation be, especially in light of its four advanced stage projects and immense inground reserves in the Billions? With prospects of the Ortiz production potential of upwards of 200,000 oz per annum in the not too distant future, it very soon begins to dawn, as to how any such an incredible leverage of $100M in net income could become apparent: That could increase initial potential revenues of up to $2 Million a month, from the Summit, to in time monthly net income gains in the realm of $5 - $10 Million, as Ortiz moves to into full production.
Many companies on Wall Street have experienced heady valuations based on expectations of future profits and yet SFEG seems to have been a victim of reverse psychology, at least for a while, but with pre-production of Gold, now at hand, it can project future revenues and has the added benefit and potential safety net, of holding immensely valuable, underwritable assets...
Santa Fe Gold Corporation
An Anomaly in Undervaluation...
"Great investment opportunities come around when
excellent companies
are surrounded by unusual circumstances that cause
the stock to be misappraised."
Warren E Buffett, Oracle of Omaha
And this may be one unique way to really sum it all up for Santa Fe Gold: Borrowing that famous line from the movie Forest Gump: "Life is like a box of chocolates you never know what you're going to get" may have many interpretations for Santa Fe Goldcorp, because as a buyer of Santa Fe SFEG today, you not only actually know "What you are going to get" ie a state of the art full production mining facility, capable of producing about $5 Million per month in cash flow, but you're also getting upwards of three million ounces of Gold based on new aquisitions, by many measures, extremely undervalued at current prices. However, once you get past the first layer of chocolates, that's where the 'unknown future upside' begins to get a little more enticing, because the second layer could represent some major new discoveries from existing properties and those recently acquired and then there is still a third layer depicting aggressive new acquisitions it seems as if there will be a lot to Santa Fe's unfolding new life ahead of us...
One way to illustrate or portray SFEG's value might be as viewed upon by a centimillionaire intent on potentially multiplying his or her or net worth. Obviously, the prospect of acquiring a company valued in the billions in terms of its inground reserves, that can only get a whole lot more valuable in time at such a current dramatic discount to its real asset values, would have to be irresistable to those who understand, how rapidly such valuations could change. And at this point in time, those asset values could increase drastically, in the event of a hyperinflation that could unfold due to recent Trillion Dollar Bailouts. Isn't this a mantra of Warren Buffet himself?
And what might impress the Oracle of Omaha most about Santa Fe? Were he to look it over? Probably how Santa Fe recently recently eliminated $6.26 Million in debt and booked a net gain of $4.6 M. That would take the equivalent of about $110 M revenues for a company like Exxon Mobil to generate in total to net $11 Million to the bottom line and some $62 Million to gain just $6.2 Million net. The big difference with Santa Fe may be how revenues of $62 Million will in all probability be capable of generating some $40 Million net to the bottom line. The question then might be: Which company would you rather own: You don't have to be Einstein to answer that one. Such performance commands a premium in the marketplace derived from a combination of Accelerating Revenue Growth and earnings multiples based on potentially higher margins than Intel or Microsoft. Bringing into production any major mining project under budget and perhaps ahead of schedule also commands additional premium, because if that enures to one quarter's worth of revenue, that should immediately be reflected in the stock price to the tune of say 5 cents per share at 20 X Earnings, would be worth One Dollar per Share to SFEG. So Santa Fe is different... Eliminating $6.26 Million in debt and adding the equivalent of $4.6 Million in gains is a significant achievement and potentially worth nearly $2 per share. Thus part of SFEG's appeal may lie in it's hidden future valuation power and the fact that its operating margins are more than likely to be significantly greater than the average company out there and those margins could greatly increase with substantially higher metals valuations, such as Silver north of $20 per oz. Production costs would shrink relative to output, to the point that at $60, output cost would be minimal and SFEG's margins could potentially exceed 70% or even more per project.
Santa Fe Gold Corporation
Sooner or Later Wall St Always Finds Real Value...
In the nearer-term future SFEG could begin to command an increasingly appreciating premium for these following important contributing additional valuation parameters the most significant of which will be, SFEG's Accelerating Revenue Growth or ARG: Once revenues begin to flow, they are very likely to accelerate dramatically in the initial quarters of production, continuing to grow over time, especially as new production and projects come on line and as production increases and efficiencies improve, so will those margins. And that in-of-itself should command some very substantial additonal premium, as it translates to the bottom line. And obviously, the higher metal prices rise, it will also impact future profitability and greater premium. But, that's not all. As SFEG continues to deliver on its promise of future growth and prospects, that should begin to create additional premium in the stock price, as heightened anticipitation of slated new ventures begins to manifest, and finally the recognition of SFEG's massive inground reserves and their monetizable potential, should help to create the overdue inflated premiums that SFEG so deserves. With such long overdue premiums, increasingly delivered, for any prospective new acquisitions that could come, potentially creating a speculative premium based on prospects of acquiring additional new and valuable acquisitions. So, the stage is set. These are all scenarios that could drive valuations of SFEG significantly higher over time in a classic bull market move.