April 13, 2006
SpeculatingStocks.com Stock Pick: Metallica Resources, Inc. (MRB)
Stock Price: $3.04 (short-term strong buy)
Metallica Resources is an emerging gold and silver producer focused on the exploration and development of precious metal rich properties throughout the Americas.
MRB is another gold play that we that we think will do well. One difference in this company from the others is that it is involved in gold as well as silver. Some believe that silver will outperform gold. This company is a nice hedge between the two.
MRB dropped on news that Mexico has renewed a previously imposed restriction on the explosives blasting permit issued to Metallica's Mexican subsidiary, MSX, for the Cerro San Pedro project. MRB's subsidiary MSX believes that it can resolve the issue in the coming weeks. This has not impeded the progress of construction on the site scheduled to be completed by the end of 2006.
The company is banking on its Cerro San Perdro project. Right now they do not have any operating mines and have been generating income from property payments.
SpeculatingStocks.com Target Price: We expect MRB to reach $3.85 within the next 30 days.