Investments in silver stocks


After rising 8% in just five days last week, the price of silver has cooled a bit.

And this short-term weakness will open up some interesting investment opportunities for us in the silver market.

So get your wallet in order – do whatever you need to do – it’s time to start buying silver stocks again right now.

And I have another killer cash game for you today which I think will see easy short term payouts of 30% to 40% and much bigger payouts in the long run.

The main thing is that …

The long term fundamentals of silver are strong. Demand for silver is expected to exceed global supply this year, due to a sharp contraction in mining supply.

As I mentioned to you the other day, the world’s supply of silver from mining production is expected to fall by 5% this year.

This will be the first time that global silver production has fallen in 15 years!

And from there, global silver production is expected to continue declining until 2019.

At last glance, silver spot prices were at $ 15.68 an ounce. But we must remember …

Silver has sold for over $ 20 an ounce for almost three solid years.

Money has legs.

And he has the basics to make it work.

It happens.

And we will be there together to take it.

As I mentioned, I have another silver mining company that I want you to take a look at.

I really like the look of this business. But before buying the stock now, there are some things to consider.

First of all, let me tell you a little bit about the company and its activities.

Tahoe Resources (NYSE: TAHO)

silver stock investments 2016 4

Tahoe Resources is a mid-level mining, development and exploration company focused on silver and gold production with three main assets in Guatemala and Peru. Let’s take a quick look …

The Escobal mine (Guatemala)

investments in silver stocks 2016 1Photo credit: Tahoe Resources, Inc.

The company’s flagship property and the third largest silver mine in the world. I repeat … it is the third largest silver mine in the world!

Last year Tahoe produced 20.4 million ounces of silver in the form of Escobal concentrate.

Not only is it one of the largest, but it is also one of the cheapest silver mines. During the third quarter of 2015, Tahoe reported the Escobal mine’s AISC at $ 9.72 per ounce. And it is in today’s market where an ASIC of $ 15.00 per ounce of silver is considered “low cost.”

La Arena mine (Peru)

silver stock investments 2016 2 Photo credit: Tahoe Resources, Inc.

A gold and copper mine with both oxide and sulphide mineralization. Tahoe is currently producing gold from oxides at a lower cost. Last year, the company produced 230,000 ounces of gold in gilt from La Arena. During the third quarter of 2015, Tahoe reported the AISC de La Arena at $ 729 an ounce of gold.

Shahuindo mine (Peru)

silver stock investments 2016 3Photo credit: Tahoe Resources, Inc.

The company forecasts an average annual production of more than 150,000 ounces. In total, the project contains 1.91 million ounces of gold reserves plus an additional 2.28 million ounces in the “resource” categories.

In addition to these assets, Tahoe also holds interests in a few exploration projects; also located in Guatemala and Peru.

This year, Tahoe expects silver production to be between 18 million and 21 million ounces with an AISC of between $ 10 and $ 11.

The company also expects to produce 200,000 to 250,000 ounces of gold with AISC at $ 950 to $ 1,050 an ounce.

Tahoe is expected to release its financial statements for fiscal 2015 today after market close. So we don’t have that information yet.

Analysts expect earnings per share of $ 0.14 on revenue of $ 146 million. The consensus range is $ 0.08 to $ 0.21 for EPS on revenue of $ 140 million $ 153 million.

I think the income could be lower. Tahoe had $ 63 million in corporate goodwill in its 2015 third quarter financial statements, which the company may have had to write off for the fourth quarter. I suspect some analysts may have overlooked this. And with silver prices falling for the week so far, TAHO shares could see some weakness after the earnings report.

It’s time to take a leap.

Despite any near-term weakness, I expect continued growth in silver prices throughout the year, leading to significant year-over-year quarterly profit growth for companies like Tahoe Resources.

Additionally, the launch of commercial production at Tahoe’s Shahuindo in the second quarter will likely draw more investor attention to the company. There is no doubt that Tahoe will announce the completion of commercial production at the mine with at least one press release.

This is a stock that I personally just bought myself.

I bought several hundred shares at $ 9.77 on Monday. And I would have bought more yesterday on the downside, but I just didn’t have the capital available in my account to make a worthwhile purchase.

I’m looking to achieve a 30-40% gain in three or four weeks on rising silver prices, bullish speculation on Q1 2016 earnings, and growing excitement around the start of commercial production in Shahuindo . But in the long run, I think the stock will see higher gains.

At last glance, Tahoe’s shares were trading at around $ 9.25. I will try to buy more stocks as long as the stock is below $ 9.50. I think you should too. I’ll keep you posted on what I’m doing with my post.

As always, please do your due diligence. Here is a link to the Tahoe website. Or, for a quick overview of the company and its operations, check out its latest business overview.

Good investment,

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Luc Burgess
Energy and capital

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