Capstone Mining

Now, it isn’t often that I profile a company that doesn’t pay a dividend.  However, it isn’t often that I find a mining company with huge potential that has no debt.

Here is a quick and dirty on Capstone Mining (CS.TO) for you to use as part of your due diligence.

Today the market is reacting to a restatement of last quarters EPs from $.15 down to $.08. And this quarter’s EPS was $.04. Although that is a disappointment based on projections, the scenario is still a good one.

Here are the positives which far outweigh the short term disappointment mentioned above.
– Book Value of the stock is already $.88
– zero debt, and $24 million in the bank.
– Doubling production by end of 2007, all financed through cash
– silver production of 10 mil oz has been presold for 10 yrs.
– copper prices are looking strong in near and mid term. $3.56 today vs average sale price last quarter of $2.84 and cost of production at $.67.
– AND it’s always warm and sunny in Zacatecas, Mexico! hehe (that’s where the mine is)

Thanks to Dan for the pointer.

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