Mag Silver Corp (MAG.TO)

Expectations got way too high a couple of years ago. Still a fair amount of exploration and operating upside. High quality silver companies are rare. At the end of a precious metals bull market, silver stocks tend to outperform.

MAG has a good project in Mexico. However, with Americas Silver, you have better leverage with active mines. Execution from a time perspective will come up faster. However, he has a $21 target for MAG. Silver will probably move faster than gold. If silver hits $20, he would go with SPM.

Market timing? Is now the time to buy something like Mag Silver (MAG-T) and buy something like Manulife (MFC-T) after a market correction in Sept/Oct? Trying to time this market is very difficult. If the Standard & Poor’s 500 Index breaks 2350, get out of the way. There is probably at least a 20% downside in the market, if history is any guide. That is 2.5X BV.

Mexican silver. A joint venture with Fresnillo, the largest primary silver producer globally. These are the extension of the veins in the Fresno District onto the joint venture ground, which is 44% owned by MAG Silver. High grade, very robust economic. They are finding at depth in the Waldo Canyon that the grade is getting better. That has given the joint venture cause to increase the scope of the project. (Analysts’ price target is $25.25.)

They have 42% of the Juanicipio deposit in Mexico. Probably the best, highest grade silver deposit out there held by a junior. Have recently been finding additional mineralization at depth at a lower level, which is not uncommon in Mexico. Looks pretty positive.

One of the best undeveloped silver deposits on the globe. Could be taken over by someone who could be stronger with the other partner.

The best undeveloped high grade silver deposit in the world. They had some problems with a partner so it isn’t the stock to own if you are impatient, but he is not. Large, high grade deposits of anything have made him money over time.