C h r i s t i a n F i n a n c i a l R a d i o N e t w o r k
| AZCO MINING | ||
|
There
is one major over-riding reason as to why we are more
bullish on Azco than any other issue: It is compellingly undervalued.
And,
just as we have for
all 2004, with our market beating performance: "We
buy value". This is "Our Mantra".
So, we especially try to highlight extremely
undervalued situations whenever we identify them,
so subscribers can move in on these situations swiftly
and efficiently or more uncommonly, can also accumulate
significant positions over time, depending upon how
rapidly moves might unfold.
2004 A Dynamic
Year for Many Issues
Some issues
we highlighted, were so undervalued at the time, or the
unfolding positive news was so impactful, it became
necessary buy immediately at market within a very narrow
time window, often in less than a day which is why
we advocate buying at the market, or stop limit orders, as
the preferred method for buying all stocks and
futures, to avoid the disappointment of not being filled on
orders.
Such was the case
with AEXCA, which at the time we first bought into around
$7.35 near the low of the first up-day, following the
news that Ampex Corp AEXCA had just issued their first
reports of a $40 Million settlement with Sony. Having
observed, past behavior of windfall profits and, or market
surprising settlements, we immediately recognized the undervaluedness
and huge potential of Ampex Corp for many reasons,
others could not readily foresee, in fact, many
were skeptical over its debt situation and recent
performance, but we quickly surmised that these were not
only, now minimized, but held potential to be overwhelmed by
anticipated future events.
AEXCA subsequently
soared almost 700% to over $50 and has since pulled back
some, perhaps offering a re-entry point for us, at a
discount. We also highlighted Industrial Services of
America, IDSA at the post-split equivalent of $5.50 enabling
us to ride it to new all time highs and sell out about
$1 off the peak at $22.50 and actually recommended shorting
this issue around a day later, a tad lower.
We also
highlighted and bought Misonix Inc MSON at $7.50 and sold it
close to $12 another buy idea that required immediate
action.
One issue that
offered some opportunity to accumulate over several days,
was B&H Ocean Carriers BHO, which we highlighted in the $8
range. Again, because we saw this as an incredibly
undervalued situation with as much as 400%
upside, which rather amazingly subsequently
occurred extremely rapidly in just under 2 months that was
somewhat inspired by the huge surge in the price of Energy.
We also
recommended and participated in two other 5 cent issues that
rose 540% and 2,100% intra-year, typically ignored by
most...
Azco - Mining Inc:
A Dynamic Year Ahead
With Azco we've
had the luxury of being able to build a significant position
in this extremely undervalued turnaround situation and now
believe that because of positive events unfolding within the
company and unbelievably valuable proven in-ground reserves,
already well in place and now becoming increasingly
recognized as growing even more valuable, due to rising
costs of virtually all raw materials: These prices may not
remain for much longer. Azco's share price AZMN has built a
massively extended and dynamic two year basing formation
that utilizing time tested technical analysis or
mathematically proven measurement techniques, actually
project Azco's share price to new all time highs in the
range of $3 ~ $4. And, that's not all: Azco's price history
is sufficiently dynamic to ultimately project prices as high
$8 to $10 and thereafter, could potentially follow in the
footsteps of Headwaters Inc HDWR to as high as $30+.
Before you say, no
way, or this is unimaginable: 'Never Say Never'. There's a
lot more to Azco than meets the eye so let us examine a time
line that could realistically send Azco's share price into
the stratosphere, because any way you cut it, the
ingredients are there and add to that the Golden Rule of
Investing - Stocks that have down to flat years, especially
2 years in a row, not only tend to trend higher, but
sometimes can accelerate considerably higher, as momentum
off the basing action gathers traction and increases buying.
But in the case of Azco AZMN, something even more
scintillating is technically unfolding.... A massive 2 year
long reverse head and shoulders basing formation that just
broke the neckline or 4 month downtrend as of early January,
setting the stage for a big breakout:
How much higher is
hard to determine, but the above numbers are not only
possible, but dooable and more, especially if our analysis
proves correct and Gold soars to as high as $1,500 per ounce
in 2009 as we believe it well for many compelling reasons we
will begin to outline as the year unfolds. You can
wholeheartedly believe that if Gold soars that high, stocks
with 'proven Gold reserves' will also.
Now read this
recent excerpt, from a fairly new Azco Investor, about
what he sees ahead and why he, like us, is ultra-bullish
on Azco:
"Although
Friday's trading is only one trading day out of the
year, today's trading in Azco means much more than the
price per share: This one is really a 'keeper'. I own
200,000 shares of this stock and I can't wait to see it
a year from now. Barring any unforseens, this company
and its prospects look spectacular. Comparing it with a
company like SIRI trading at $7.50 a share with hundreds
of millions of dollars in debt and a promise of sometime
in the next 5 years of possibly turning a profit..."
'Not only that. Last month, Azco's CEO publicly declares
that he sees $100 Million to the bottom line off just a
quarter of our reserves: That is a forward looking
statement and carries truly immense implications for
Azco's future. This is an institutional
no-brainer'. "Wall Street really gets it backwards at
times"!
From Humble
Beginnings... To a Great Future *
See Below
There is a curious
relationship between Azco and Ampex Corp. Both companies
were the recipients of overnight riches of $40 Million,
but which is company is really more valuable
today? Arguably, it could more likely be Azco. Firstly
because Ampex still has $89.69 Million in debt and secondly,
even though it has 600 patents and applications that make up
its intellectual property and future value, technological
breakthroughs are happening with such speed today, such
future values could easily be eclipsed and to some extent it
is vitally important for Ampex Corp to win additional
settlements and lawsuits, so it validates its patents and
consolidates leadership.
On the other hand:
What has Azco gained from the $40 Million it created out of
nothing and received for the two copper deposits it
discovered? Actually a great deal. First: It leveraged its
windfall into acquisition of one of the World's largest,
purest and richest Mica and Feldspathic Sand formations,
that has potentially one of the most profitable mining
models in existence and has already invested upwards of $20
in infrastructure developments. And Second: It has since
recently acquired one extremely valuable Gold property with
proven reserves of 2 Million ounces with gross in-ground
valuations of both properties that arguably could be worth
well over $1 Billion.
Based on its
2003 10K filings, Azco's book or enterprise value should be
$9.19 Million. That alone values Azco at 50% higher than
today's market value or around $5.85 Million, or $0.23 per
share, which way out of date and is kind of like valuing
house prices in the 90's and doesn't take into account, the
in-round assets described above since acquired, but much
more importantly, these initial 2003 numbers do not take
into any account Azco's stunningly successful and
potentially enormously valuable acquisition of the
Ortiz Land Grant in September 2004, one of the few remaining
uniquely large mining reserves in the United States. The
Ortiz Land Grant covering some 90 square miles, is a
geologically highly prospective 57,391 Acre property
containing 2 Million Ounces of proven Gold reserves and also
holds potentially enormous additional exploration
upside including, silver, tungsten, molybdenum and base
metals such as Nickel and Copper and probability of
additional Gold, in part already determined by 386,000 feet
of drilling outlined in 1,500 drill sites.
As Gold remains
buoyant, Azco becomes increasingly undervalued. In fact,
since Gold established a new range around $440, gross values
of Azco's Proven Gold Reserves potentially equal almost $900
Million and that is without factoring in the additional
probable reserves easily approaching 1 Million
ounces, thought to be evident at Ortiz Gold. Add to
that an approximate gross value of Azco's appraised and
proven inground reserves of Mica and Feldspathic Sand
and you are looking at somewhere around $700 Million for a
staggering total of $1.6 Billion plus, with net asset values
of some $400 Million, assuming a $220 per ounce cost of
production for the Gold and $300 Million for the Sand and
Mica you still come up with a significant 'net valuation'
number in the realm of $700 Million.
If you divide that
by 10, at $70 Million Azco is still about 10 times
undervalued at today's prices, so any way you cut it, Azco
means value. In fact, as has been pointed out
by other investors that Azco is really worth as much as $5
per share and now that Dr Carson sees the potential of $100
Million to the bottom line from just the initial 1.03
Million Ounce of Gold in the two open pit deposits, those
kinds of revenues would put Azco on the path of becoming a
Billion Dollar Company. That may seem like a stretch, but
if we had said the same about Headwaters HDWR back in '99,
it would in all likelihood have been met with the same kind
of skepticism or ridicule...
Azco has already
been compared to Headwaters Inc HDWR. We strongly
recommended this in late 1999 and made one subscriber over
$1 Million. It probably had well over $1 Billion in inground
assets then, but for all the usual perplexing reasons, the
market gave no recognition it deserved for what it had as it
slumped to multi-year lows at .50 cents. But just like Azco,
it had what it had, and slowly but surely, investors began
to recognize it for its true value and steadily,
methodically, it's been growing in leaps and bounds.
In fact, HDWR was
just recognized by Forbes as the 2nd fastest growing company
in America with a market cap of over $1 Billion. So the
lesson is: It can happen and one should pay great attention
to and appreciate any company that has proven assets,
because they have indisputable value. It even makes Azco a
potential takeover candidate, because as owner of one of the
largest Gold deposit acreages in the US with its
massive 57,267 area equal to about 90 square miles, it is on
a scale of the King Ranch in Texas, one of the US's largest.
Large undiscovered properties in the United States remain
elusive these days rendering Azco's acquisition special...
Moreover, just two
short years ago, Wheaton River Minerals Inc WHT had a market
cap of $20 Million and has grown to a staggering $2 Billion
market cap today. Could Azco's market cap grow from $7
Million to $700 Million? Again: "Never Say Never": But,
the real likelihood of at least a 10 fold increase to a $70
Million market cap, is not only deserved, it does
appear possible, as Azco continues to execute on its
strategic Agenda and continued acquisition aspirations by
continuing to identify and acquire high quality Gold, Silver
and Copper resources as outlined by its President and CEO,
Dr W Pierce Carson in various publications and very positive
interviews.
Remember how Azco
started out...It's really an incredible story of how a
little known company went out and discovered two hugely
significant Copper deposits, selling them almost overnight
to mining giant Phelps Dodge for windfall profits of $40
Million net and then leveraging this into acquisition one of
the world's largest mica and felspathic sand
formations. Now it has since pulled off the unimaginable
a year or so ago, in recently acquiring one extremely
valuable Gold property with proven reserves of 2 Million
ounces, with potentially enormous ongoing upside discovery
potential, given the size, location and the especially
conducive geological structure of the
formation. Many companies on the NYSE and Nasdaq would
dearly love to be able to report windfall profits of $40
Million. Just recently Ampex Corp AEXCA was in dire straits
financially, when it received a $40 Million settlement from
Sony Inc in a patent infringement case. The share price
soared from $4 to over $50. Azco not only became beneficiary
of a similar $40 million from its initial discovery
successes, but it has effectively just replicated that its
earlier success, by deftly acquiring two immensely valuable
World class properties with potential gross values of $1.6
Billion and net asset values approaching $700
Million with additional upside.
Now with one of
the World's foremost explorationists at the helm, with not
only a proven, but stellar track record for creating wealth
Dr. W. Pierce Carson has initiated a new and
revitalized exploration, acquisition and mining agenda for
the 21st century for 'our Azco'.
His 33 year career
record for raw exploration around the world leading to
significant discoveries and acquisitions, is quite
unparalleled.
Dr. W. Pierce
Carson with a PhD in Economic and Structural Geology and MS
in Ore deposits from Stanford University and a Bachelors
Degree in Geology from Princeton, has an accomplished
international mining career spanning 33 years with extensive
experience in directing exploration and development and
mining of base metals, precious metals and industrial
minerals projects.
Exploration and Mining Career Highlights:
Early in his career, his geologic work with a small exploratory task force at Exxon Minerals on all five continents of Central and South America, Asia, Europe and Africa led to major exploration programs in Australia, Chile, Germany, Spain and South Africa. Responsible for all precious metals exploration activities in the United States and Canada at Kennecott Copper Inc: A property that he identified and recommended for acquisition was acquired and developed by Kennecott: Subsequently became a significant gold-silver producer. Acquisition of the Tabar Islands gold property, in a joint venture with Kennecott. Discovery of the Kurara gold mine in Western Australia with subsequent successful financing, development and operation of the mine. Discovery of Emu South gold mine in Western Australia, joint venture of the property to Western Mining and subsequent sale of interest and $40 million distribution to limited partner investors. Completion of Ramu nickel pre-feasibility study based on pressure acid leaching. Acquisition of the Girilambone copper property and design of the technically innovative and highly successful SX-EW processing system. Arrangement of financing for Girilambone mine development through joint venture participation and bank debt. Implementation of hedging programs. Successful operations of the Girilambone copper mine and the Kurara gold mine. Discovery of Tritton copper deposit using state-of-the-art geophysical methods. Purchase of Kennecott's interest in the Tabar Islands gold project. Acquisition of the Johnson Camp copper mine and Tritton copper property in the United States and Australia. Sale of Ramu nickel project, Papua New Guinea and Sierra Rutile titanium mine, Sierra Leone. Arrangement of project debt financing of $42 Million for copper and other mines. Azco's objectives are to bring its properties on line and into full production as quickly as possible to satisfy the rapidly growing demand for exotic minerals and the increasing demand for Gold that is driving today's price to 16 year highs. It's happening right now. Azco's Strategic Mission simply put is: "Through strategic acquisitions using its experience and expertise in mining and markets, AZCO's aim is to enhance shareholder value and build a strong cash-flow driven resource company with significant sustainable revenues annually within the next three years"
Frankly, with
today's buoyant Gold market, any serious fund manager worth
his salt, learning or knowing of Dr. Carson's extensive
career experience and leadership, would probably want to bet
very big on Azco, given his many initiated projects from
startup to sale, cumulatively creating great wealth for his
investors.
As we have said
earlier and we wholeheartedly cannot underscore this enough:
When You Think Azco - You Have
To Think of Azco as being Extremely Undervalued, for all the
reasons we've outlined:
It has been many months since we started publishing Investment Intelligence and we are honored by your participation as we grow ever larger, now with thousands of readers. In response we have attempted to share with you potentially life changing information that in many cases had investors taken advantage of could have done just that: Changed lives. While Wall St frustrated investors during much of the year, many of the issues we've highlighted are still trending higher, in particular HWG, which we brought to investors attention back in late June at $48.48 through an associated publication traded recently at an all time record high of $120 plus well over 100% from where it was recommended just a few months ago. The same can be said for numerous other issues we have profiled in particular AEXCA, IDSA, RIV all of which have soared exponentially and is something we confidently foresee for Azco in the future. So when you ask why are you all so optimistic about Azco and our other Portfolio Builders? The answer is: While we were fortunate to pick numerous winners for our trading portfolio, while they can and have delivered 100% plus gains in just a few weeks or months in some cases, we sincerely believe and strongly feel that Azco and our others represent lifetime return potential in the 1000 percentile.
If we're able
enough to uncover stocks with such huge potential better
than just about any other advisory service in the World, as
we have done for most of the past five years, then the
stocks we call our Portfolio Builders have what could be
termed uncommonly bullish lifechanging potential and we are
resolute in our dedication to these ideas. Simply put: We
invest in value, because value wins.
Azco is a special case in that here at 15 cents it really is absurdly undervalued... With AZMN, we've not only already got it, there is an enormous amount of potential still to come and maybe way beyond the kind of expectations that routinely have Wall St drooling: Why? The company has clearly and carefully stated its intentions. "Through strategic acquisitions using its experience and expertise in mining and markets, AZCO's aim is to enhance shareholder value and build a strong cash-flow driven resource company with significant sustainable revenues annually within the next three years"
And if that's
not enough: Consider this excerpt from Dr Carson's
recent interview with a year end review and New Year
outlook:
Excerpt of Interview with CEO Dr. W. Pierce
EDS: How much profit do you anticipate from the Ortiz venture once lease payment and royalties are considered?
WPC:
The lease payments are nominal. There is a sliding scale production royalty related to the price of gold, but generally the profit will depend on the operating and capital costs. A one million ounce deposit at the current price of gold, which is over $400 per ounce, would have contained gold worth over $400 million. That represents in-ground value. If it costs half of that to mine the ore and extract the gold, you are left with a number of around $200 million that we could expect in cash flow. Of course out of that you have to amortize the capital cost. That will give you an idea. Out of the one million ounce deposit, we can expect over $100 million as a bottom line profit number.
If that's still not enough,
read again the recent press release announcing Azco's
acquisition of 2 Million Ounces of Proven Gold Reserves:
Azco Leases 2 Million Ounce Gold Property
GLENDALE, Ariz.--(BUSINESS
WIRE)--Sept. 21, 2004--Azco Mining Inc. (OTC:AZMN
-
News),
a US based mining and exploration enterprise with an
emphasis on gold, copper and industrial minerals, and owner
of a large high quality mica deposit, announced today it had
entered into an option and lease agreement with Ortiz Mines,
Inc. covering 57,267 acres (approximately 90 square miles)
of mineral estate on the Ortiz Mine Grant, Santa Fe County,
New Mexico. Under terms of the lease, the Company is
required to make annual lease payments and to pay a royalty
on production. Previous exploration and development work on
the property by other companies identified 2 million ounces
of gold resources in several deposits.
A preliminary feasibility study in 1990 on two of the deposits, the Carache Canyon and Lucas Canyon deposits, concluded that at a gold price of $385 per ounce or higher, it would be economically feasible to develop two open pit mines containing 1.03 million ounces of gold. Those two deposits have yet to be mined. Historically, mines on the leased property have yielded some 350,000 ounces of gold, including 250,000 ounces from the Ortiz Gold Mine (Cunningham Hill deposit) operated by Gold Fields Mining from 1980-1986. Dr. Pierce Carson, CEO, stated: "The Ortiz lease fits the Company's strategic agenda of acquiring significant precious and base metal assets. It represents an excellent opportunity to acquire, under favorable terms and in the United States, substantial gold resources with demonstrated potential for production. Furthermore, the geology of the unusually large area under lease is highly prospective for several styles of gold deposits and offers superb exploration potential for discovering additional major deposits." From 1972 through the early 1990's, several companies carried out exploration and pre-development activities on the Ortiz property. These companies included Conoco, Inc., LAC Minerals (USA), Inc. and the LAC -- Pegasus Joint Venture (1989-1992). Expenditures by these groups exceeded $40 million. At the Carache Canyon and Lucas Canyon gold deposits, approximately 386,000 feet of core and reverse-circulation drilling was completed. In 1989 the LAC -- Pegasus Joint Venture started a decline adit into the Carache Canyon deposit for the purpose of bulk sampling and to provide drilling access for shallow and deep targets. However, after advancing 1719 feet the decline was halted due to a temporary water inflow coupled with regulatory and permitting problems. In the face of a declining gold price, the project ultimately was cancelled. The Carache Canyon gold deposit was estimated to contain an open-pit minable reserve of 11.8 million tons grading 0.06 ounces of gold per ton at a waste-ore ratio of 8.3:1. The Lukas Canyon gold-copper deposit was estimated to contain an open-pit minable reserve of 7.6 million tons grading 0.043 ounces of gold per ton and 0.22% copper, at a waste-ore ratio of 2.2:1. These estimates were based on a gold price of $385.00 per ounce. The Carache Canyon deposit occurs in andesitic sills and sandstone around the margins of a collapsed breccia pipe. The Lucas Canyon deposit is developed in a garnet skarn. A 1990 pre-feasibility study carried out by the LAC -- Pegasus Joint Venture concluded that economics would be positive for open-pit, heap-leach mining of the Carache Canyon and Lucas Canyon deposits at gold prices over $325 per ounce, assuming a discount rate of 10%. Production was projected to average 83,500 ounces of gold and 103,444 ounces of silver annually over a nine-year period. Operating costs for one mining scenario averaged $222 dollars per ounce of gold produced. Capital costs (1990 dollars) ranged from $59 million to $75 million depending on whether contract mining would be employed. The study concluded that the numbers quoted were conservative and that significant improvements in capital and operating costs would be possible. The study also considered the project to have excellent upside potential to increase both the minable ore reserves and grades. However, the study listed several areas of concern that must be addressed before a production decision could be made, chief among them permitting difficulties to be overcome, water rights to be obtained and bulk sampling to be completed. Dr. Carson said that in addition to the potential for open pit mining, the Company also would be looking carefully at the possibility of underground mining. He noted that the drilling data for Carache Canyon showed areas of high-grade gold intersections that had not been evaluated for their underground mining potential. He noted also that metallurgical studies of Carache Canyon ore indicated that, after grinding, a gold recovery of 90% plus could be achieved in a gravity circuit. If additional work can define discretely minable high-grade gold ore bodies, then the approach of underground mining and gravity recovery would offer significant advantages in dealing with permitting issues and would facilitate the project moving more quickly towards production. Such an underground operation would involve minimal surface disturbance, clean processing of ore and utilization of relatively small amounts of water. The 90 square-mile Ortiz property is underlain by mid-Tertiary monzonite and latite porphyry stocks, plugs, dikes and sills that have intruded Paleozoic to early-Tertiary sedimentary rocks. Late-stage volcanism resulted in the formation of breccia pipes and fracture zones that provided access for hydrothermal fluids carrying gold, silver, tungsten, molybdenum and base metals. This terrane holds excellent potential for additional discoveries, and several partially tested prospects have been identified, three of which have been shown by limited drilling to contain insitu geologic resources respectively of 60,000, 60,000 and 105,000 ounces of gold. About half the Ortiz property is covered by Quaternary gravels derived from the outwash of adjacent mountains. Several promising exploration targets beneath the gravel cover also have been identified. The Company currently is beginning an assessment of the large amount of technical data available. This review will focus on the production potential of the Carache Canyon and Lucas Canyon deposits, and on other targets that could have the size, grade and other characteristics sufficiently attractive to justify further exploration and development. The review also will include all factors important for successful development and mining, including regulatory, permitting and site access issues. After evaluating the technical information and assessing the major risk factors, the Company expects to be in a sound position to formulate a plan and budget for additional exploration and development. Azco Mining Inc. is owner and operator of the Black Canyon mica deposit near Phoenix, Arizona, a large mica resource containing a drilled reserve of 422 million pounds of recoverable mica and 3.7 million tons of by-product feldspathic sand. In 2003 and 2004 the Company sold limited quantities of mica and of its engineered mica-filled plastic pellet product to a major company that is an important producer of plastics for the automotive industry. Mica is increasingly used as an additive in plastics for its reinforcing properties and for its ultra-violet and heat resistant characteristics. The Company also has supplied mica to a leading global cosmetics manufacturer. The information contained herein regarding risks and uncertainties, which may differ materially from those set forth in these statements, in addition to the economic, competitive, governmental, technological and other factors, constitutes a "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created thereby. While the company believes that the assumptions underlying such forward-looking information are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking information will prove to be accurate. Accordingly, there may be differences between the actual results and the predicted results, and actual results may be materially higher or lower than those indicated in the forward-looking information contained herein.
Mission Statement
|
COPYRIGHT 2006 • CHRISTIAN FINANCIAL RADIO NETWORK • WEB-DESIGN BY: TONYBERRY TEKSOURCE • 2005