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:

Eric Zaunscherb, Canaccord Genuity (11/11/15)
"We rate Bear Creek Mining Corp. a Speculative Buy with a CA$1.50 target price based on 1x fully financed NAV(9.9%). . .the $625M Corani Ag-Pb-Zn project hosts 2P mine reserves of 137.7 Mt at 51.6 g/t Ag (228 Moz), 0.91% Pb (2.8 Blb) and 0.59% Zn (1.8 Blb). . .the mine is expected to produce an average of 8.3 Moz/year Ag for 18 years."

"Bear Creek Mining Corp. was on the recommended list for quite some time, but with the devastation of the commodity sector, we listed it on a speculative basis. The Corani project in Peru just released an updated feasibility study and it's exceeding our initial expectations. Everything has just gotten better except the share price. That's what's so frustrating in this business. Companies do so much work to bring value to the shareholders, yet the price is lower than ever. The good news for people who have patience and willingness to stand by their convictions is if a company is a good price at X and now it's selling at 50% of X, it's obviously a better buy. That is the case for Bear Creek." read more >

"Bear Creek Mining Corp. operates in Peru. It has one of the best-quality assets of any silver junior. It has a very large silver reserve—over 500 Moz—relative to its market cap of $86M. It has two projects. Santa Ana was frozen by the Peruvian government. This is now the subject of an international arbitration, one that I believe Bear Creek has a very good chance of winning. Its second project is Corani. This has Proven and Probable reserves of 228 Moz silver, 2.77 Blb lead and 1.47 Blb zinc, at a grade of 51.6 g/t silver. According to its June feasibility study, it has a 20.9% after-tax internal rate of return and a $660M net present value. Mine life is forecast to be 18 years, and the sustaining capital expenditure is $667M. In this market, finding financing will be a challenge. I think Corani will need to wait for a more positive view of the future price of silver." read more >

Don Blyth, Paradigm Capital (6/4/15)
"Bear Creek Mining Corp. released a substantial update to its Corani project feasibility study. . .the project economics have improved (we estimate its internal rate of return at 20.8%, up from our previous estimate of 16.9%), and the smaller overall environmental impact footprint should be beneficial as the project proceeds through permitting. We continue to view Corani as a world-class silver deposit, which would be one of the top 10 largest silver mines (by annual production) as envisioned by the current feasibility study. . .an excellent cornerstone asset that could launch the company into the silver producers or an attractive acquisition target."

Chris Thompson, Raymond James (6/2/15)
"We are maintaining our Outperform 2 rating. . .following the tabling of a revised feasibility study on Bear Creek Mining Corp.'s 100%-owned Corani project (approximately 90% of our net asset value for the company). . .the revised feasibility study reflects a modest improvement in the project's economics (with enhanced efficiencies). . .we view Bear Creek as a CA$90M market capitalization call option on silver (and lead and zinc) reflected by Corani's potential to deliver significant average life-of-mine annual production of 18 Moz Ag eq over a long mine life. This, with Bear Creek's attractive valuation and strong balance sheet ($30M cash), underpins our Outperform 2 rating."

Andrew Kaip, BMO Capital Markets (6/2/15)
"Bear Creek Mining Corp. announced the results of a revised feasibility study for the Corani project in Peru. . .assuming the development of a dry-stack tailings system, incorporating equipment leasing and removing transitional ore with lower silver recoveries from the mine plan. . .the company will present a modified Environmental and Social Impact Assessment (ESIA) to the Peruvian government by Q3/15 and advance toward a construction permit by H1/16. . .the revised feasibility study highlights reduced life-of-mine capital requirements and enhanced silver recoveries."

More Expert Comments

Experts Following This Company

Alberto Arispe, Gerente General – Kallpa Securities S.A.B.
Don Blyth, Analyst – Paradigm Capital
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
Amanda van Dyke, Managing Director, Europe – Palisade Capital
Eric Zaunscherb, Analyst – Canaccord Genuity

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