MineFinders (MFN)

Based on ounces in the ground valuation, this thing is cheap. If everything goes reasonably well, Minefiners will join the rank of producing companies before the year is out and should be revalued to reflect that. Rough EV:oz au equivalent calculations shows it is a quarter of the multiple for Minefinders compared to, say, another one-mine producer like Agnico-Eagle.

Based on ounces in the ground valuation, this thing is cheap. If everything goes reasonably well, Minefiners will join the rank of producing companies before the year is out and should be revalued to reflect that. Rough EV:oz au equivalent calculations shows it is a quarter of the multiple for Minefinders compared to, say, another one-mine producer like Agnico-Eagle.

There are indications that there is good potential for resource upgrade at Dolores covering areas that were not included in the revised feasibility study. Moreover, there are also clear exploration targets in Planchas de Plata, Real Viejo, La Bolsa and El Duranzo.

Management has acted conservatively in bringing Dolores along to production. Shares outstanding stand at 48M, reasonable compared to a serial diluter like Yamana. The management's plan to initiate production with a lower-cost open pit, heap-leach mine and use cash flows generated to upgrade to a mill demonstrates a judicious sense of strategy. And the fact that the company has managed to finance all of this without egregious amounts of debt, dilution or hedging reflects well on management.

Favorable jurisdiction and economic environment: Minefinders' Dolores property (as well as their other prospects) are all located in Mexico, which is probably one of the best places to be a gold mining company in world right now. While infrastructure may be a slight problem, the country has a rich mining history and culture, good prospects that property rights will be respected for the foreseeable future, a good labor pool and an attractive currency relative to the US dollar.