Penny stock trading outside the OTC markets is much less volatile which could draw some investors Silver Bull Resources Inc. (SVBL) after their recent news. First of all, the Wall Street analyst firm of Roth Capital initiated coverage of SVBL stock today with a “buy” rating which isn’t really a boost since they do that to every Company they have a financing arrangement with. However, they are drilling, finding gold, zinc and silver, which could be a major contribution to their PPS in the near-term.
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SVBL Stock Chart
Market Cap: 57.19M
(Sep 6, 2011): 0.77
(Jun 21, 2012): 0.39
50-Day Moving Average3: 0.45
Avg Vol (3 month): 91,625
Avg Vol (10 day): 47,088
Shares Outstanding: 136.16M
% Held by Insiders: 34.20%
% Held by Institutions: 6.80%
(a/o Jun 29, 2012): 1.27M
Two days ago, the junior mining company updated their drilling project in Mexico by announcing that they had intersected 106.35 meters of 37g/t Silver and 16 meters Of 10.34% zinc at the Sierra Mojada project. The Company’s 2012 surface drill program consists of 83 drill holes totaling 18,000 meters.
Originally designed to infill zones of mineralization defined by previous drilling as well as continue expanding the resource through step out drilling, recent results have confirmed the continuity and tenor of the extensive silver and zinc mineralization remaining open in all directions.
A strong find and some smelting would be a great move forward considering that the Company has built up an accumulated deficit of $80,549,477 during its exploration period and yet to record $0.01 in revenues since inception. With total expenses running at roughly $3.5 million a quarter based on the last six months and cash of $6.55 million as of April 30, investors can expect to see more notes in the statement of cash flows for “proceeds from the sale of common stock.”
SVBL stock is currently trading -2.33% below the 50-day moving average (0.45), -14.54% below the 200-day moving average (0.51), -43.10% below the 52-week high (0.77), and 12.33% above the 52-week low (0.39). Year to date, SVBL stock is down -19.94%.
About SVBL Stock
Silver Bull Resources, Inc. is an exploration stage company, formed under the laws of the state of Nevada, and is engaged in the mineral exploration business in Mexico and Gabon, Africa. The Company currently owns or controls several concessions, which are located in the municipality of Sierra Mojada, Coahuila, Mexico. The primary objective of SVBL is to define sufficient mineral reserves on the Sierra Mojada Project to justify the development of a mechanized mining operation. Although the Company has been exploring certain mineral properties, they had not established any reserves as of April 30 and acknowledged on their recent prospectus that they may never enter the development or production stage.
To view the SEC filings for SVBL, click here.
Bottom Line: The fact that SVBL has finally intersected minerals is a positive enough sign to throw this penny stock into the top 10 traded list with a million dollars plus in volume if it was on the OTC. However, because they traded on the NYSE MKT, SVBL and its stock diluting future gives it a ceiling of less than $1 over the next 6-12 months. Best case scenario is a blue chip mining company comes in to acquire them but, until Gold and Silver prices become bullish, it isn’t going to even be an idea.
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