New Risky Pick - FAN
I've decided to take a position in Farallon Mining - FAN today. Farallon operates its high grade zinc G-9 Mine in Guerrero State, Mexico. It has released its fourth quarter results yesterday with a production totalling 23.4 million pounds of zinc concentrate and 2.4 million pounds of copper concentrate as well as some silver and gold by-products. FAN plans to increase its current production by increasing its 1500 tpd mill to 2000 tpd by July of this year. It currently has $22 million in capital and continues to generate cash flow from on going operations which should also allow them to continue with their exploration activities. Because of its by-products FAN should continue to be a low cost zinc producer for years to come. It is estimated by the company that the zinc production should cost approx.
.44 per pound.
President and CEO Dick Whittington said "The initiatives that were undertaken in the third quarter to improve mill availability paid off and the mill has now been successfully ramped up to full design capacity. With the mill expansion on track to increase production and our exploration program delivering excellent results, we are well positioned to grow our production profile and add mine life in 2010. We are also focused on growing the Company through accretive corporate transactions, with the objective of becoming a mid-tier, multi-mine Company."
Farallon Mining's shares have been correcting in the past two trading sessions allowing investors to buy in at a good entry price. I currently rate FAN as a BUY at these levels and suggest you take a look at their website. As always, do your own DD and make sure FAN is right for you. Have a great trading day,