AZTECA GOLD

Azteca Gold has been halted. I coincidentally called the President this morning and have never heard him so upbeat about the company, and he has been very upbeat in the past. He couldn't tell me anything specifically but he feels vindicated in that he bought the right properties. He said it feels similar to Idaho General (now General Moly - GMO) which he built from the ground up as he is doing with Azteca. It has been hard watching the share price languish, but he feels confident that, as with GMO which languished for quite some time before taking off from around $1.00 to $11.00 in a short time, Azteca will soon get the respect that it deserves. As a disclosure, I am holding a large position in Azteca and cannot wait to hear the news that is coming out from this halt.

Maybe they're finalizing the Bunker deal with a massive dilution....

Wow, how negative can you get?

I came very close to buying some recently...sheesh! I may regret not doing so any minute now, I guess.

All the best Garry and Silverman!

http://ca.us.biz.yahoo.com/iw/080204/0357026.html

Doesn't look too good.

For the 1st round of drilling it looks pretty good to me, especially considering it is in the heart of Coeur's Palmerejo property. Prove up ounces and sell to Coeur who are building a mill as we speak, would be a good strategy. Gotta be worth at least a buck a share just based on that alone, plus the Bunker Hill property is worth a couple more bucks a share, so in my opinion this is highly undervalued. Most people didn't like GMO at $1.00, but they loved it at $7.00. I think the same thing will happen with Azteca as they start to prove up their properties with more drilling. The president is great at building companies and has a lot of his own money invested in Azteca, which is a very good sign.

Garry wrote:

Wow, how negative can you get?

Could be a buying opportunity

We have not heard from you for a while.

I guess all it takes is AZG coming back from the dead !

( Your other favorite, GPO , is next ?? )

Garry wrote:

Wow, how negative can you get?

...not much more than that!

I sold all AZG until they finance the Bunker. It's a huge expense compared to current market cap. If I participated in PPs, I would certainly want a piece of the PP, otherwise I will wait until after they finance it before I buy retail shares

[quote="studbkr"]

Garry wrote:

I sold all AZG until they finance the Bunker. It's a huge expense compared to current market cap. If I participated in PPs, I would certainly want a piece of the PP, otherwise I will wait until after they finance it before I buy retail shares

I talked with the VP of Finance several times over the last couple of months. He said they may sell off this property (the one the news came out on) to I believe CDE (nearby)? Anyhow, they would do this to raise cash to buy Bunker Hill rather than do a PP or dilute. He thought they may get enough cash from the deal to do it, or at least come close.

So you have to decide - is AZG.V a better play with this property or with Bunker Hill paid for?

He also said they are working geology on a "company maker" property and may have news out on it sometime soon (30 to 60 days). With Bunker and this property alone he said their plan would be to sell out in a couple of years around $10/share. Those were his words, not mine. Take that and cut it in half and $5 in two years may be a more realistic figure unless we are in a mania by then.

We'll see what the market thinks tomorrow. Today someone wanted in ahead of the news and drove it up 13%. Let's see if their insider info paid off or if they get burned.

Regards,
PA

Thanks for the analysis and comments from their VP. I will watch them more closely.

If you talk to AZG again, ask them what they think their relative market cap would be (or should be) compared to USA.V and SRLM.OB when AZG is at $10 a share! Those other guys are producing....

I hear the number $46 million kicked around for the purchase price of the Bunker. That is about the current market cap of the company. Seems to me that if they can get he Bunker paid for without financing or dilution, the market cap of AZG on Bunker alone should be significantly higher. Nobody knows for certain what is left in the Bunker to extract, however I was up there during the Silver Summit and had a chance to talk with some folks about it. Most people believe there is a lot of lead and zinc left in that mountain - some to the tune of a billion lbs or more.

All speculation of course, however once they finalize the deal, they will be in there with drills proving out the resource. Could be an exciting time for them. I hope this property allows them to do what they hope to do.

Regards,
PA

Waiting to buy more below 0.40

silverman wrote:

Waiting to buy more below 0.40

Looks like you may get it as the market is certainly underwhelmed by the results announced yesterday. My understanding is that there is more news coming shortly.

Regards,
PA

pa30twin wrote:

I hear the number $46 million kicked around for the purchase price of the Bunker. That is about the current market cap of the company. Seems to me that if they can get he Bunker paid for without financing or dilution, the market cap of AZG on Bunker alone should be significantly higher.
PA

USA.V is worth C$130M (non-diluted, www.tse.com) and SRLM.OB is worth US$116M (non-diluted, www.otcbb.com). So my question is "does AZG think they're worth anywhere near $100M with a non-producing Bunker Hill in their portfolio?" I don't want to beat the issue to death, but I think a producer is worth much more than AZG unless they have a much higher 43-101.

I agree there's alot of mystique and potential at the Bunker, but it's a long ways from returning to it's former glory (time and money). I'm not trying to be negative, but pull-out some details that might convince me and others to move money from SRLM and USA to AZG (I own USA and SRLM).

Again, all in the spirit of good debate and good investing...