Bear Creek Mining Corp.

Bear Creek Mining Corp.'s Corani and Santa Ana projects contain more than 500 Moz silver, including more than 330 Moz in reserves, providing near-term production potential and excellent leverage to silver prices. The feasibility study for the flagship Corani project estimates average annual production of over 13 Moz silver (plus lead and zinc credits) for the first five years of a 20-year mine-life, with extremely low cash costs and fast payback of capital costs. The project is proceeding towards permitting and construction.

Expert Comments:

"Bear Creek Mining Corp. is running an arbitration process with the government of Peru over the license to operate the Santa Ana project, its 47 Moz silver project. Just to clarify, the government did not expropriate the project but revoked the license to operate in a border zone. All foreign companies need this permit to start a project. Barring a resolution, this dispute will be adjudicated in Washington, D.C., in September 2016. The legal experts will testify in favor of Bear Creek, but the decision to seize Santa Ana was a political one, and a decision to give it back would have political consequences. I expect a good result for Bear Creek, perhaps by the end of 2015, which would be a good omen for the mining community in Peru. Santa Ana is an excellent project, with an after-tax net present value of $80.2M and an internal rate of return of 24.9%. Its capex is low, only $70.8M, and can start production very quickly.

We should see the feasibility study of Bear Creek's other Peruvian silver project, Corani, real soon. This will be an update of the 2011 feasibility. That showed a resource of 270 Moz silver, 3.1 Blb lead and 1.7 Blb zinc. It showed an initial capex of $574M, an after-tax NPV of $463 and a 17.6% IRR. The updated feasibility will adapt Corani to current market conditions and lower the capex. Bear Creek is talking to several parties and examining several strategies about financing for Corani. There are various alternatives: streaming and offtake agreements, joint ventures. I'm pretty sure a combination of these will finance Corani. . .any small company with well-advanced projects—meaning good assets—could face hostile takeover attempts. Bear Creek is one example." read more >

Hebba Investments, Seeking Alpha (4/12/15)
"Bear Creek Mining Corp. has two catalysts that could be a big boost for the company. The updated feasibility study is due out soon, and we think that Bear Creek's decision to dry stack tailings can help boost the internal rate of return over the important 20% mark."

Andrey Litvin, Edison Investment Research (3/25/15)
"The revised feasibility study on Bear Creek Mining Corp.'s Corani silver-lead-zinc project is due in April 2015, focusing on reducing preproduction capex. . .the capital cost is expected to be reduced by CA$150M against the original 2011 estimate. . .the company also guides lower opex."

Andrew Kaip, BMO Capital Markets (2/19/15)
"Bear Creek Mining Corp. provided an update of all its projects, including a preview to the Corani revised feasibility study. The company highlighted a possible ~$125M capex reduction. . .at Santa Ana, the ICSID issued a Procedural Order No. 1 commencing tribunal hearings. . .the ICSID issuance of the Procedural Order No. 1 is a positive step to final settlement of the Santa Ana dispute."

"Raymond James covers Bear Creek Mining Corp., a silver-focused, development-stage company. . .Bear Creek has a well-respected management team. It is well financed with two assets, both in Peru: Corani, a polymetallic deposit, and Santa Ana, a development-stage silver project. Bear Creek is currently negotiating with the Peruvian government to restore its ownership of Santa Ana." read more >

"Catherine McLeod-Seltzer, chairman of Bear Creek Mining Corp., was one of the people featured in Women in Mining's 2013 'Top 100 Global Inspirational Women in Mining' report." read more >

More Expert Comments

Experts Commenting on This Company

Alberto Arispe, Gerente General – Kallpa Securities S.A.B.
Ricardo Carrión, Mng Dir Corp Finance & Cap Mkts – Kallpa Securities S.A.B.
Andrew Kaip, Analyst – BMO Capital Markets
Andrey Litvin, Analyst – Edison Investment Research
David Morgan, Publisher – Silver Investor
Chris Thompson, Mining Analyst – Raymond James
Trevor Turnbull, Analyst – Scotia Capital
Amanda van Dyke, Managing Director, Europe – Palisade Capital
Eric Zaunscherb, Analyst – Canaccord Genuity

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