Wildcat Silver Stock forecast 2012

Indonesia stock info - Wildcat Silver Stocks forecast 2012 ; With the threat of a Europe-triggered credit crunch still looming overhead, I hesitated to include non-producing silver companies like Orko and Wildcat on this list of top stocks for 2012. They had to earn their way onto the list, but I believe that Wildcat has resoundingly earned its keep with the developing Hermosa project in Arizona. The project already boasts a resource of 121 million ounces of silver, for which the stock's puny market capitalization beneath $200 million assigns a remarkably low value.

The key catalyst for 2012, I believe, will come early in the year, when the company releases an updated preliminary economic assessment (PEA) and resource estimate for the project. The previous PEA, released in 2010, envisioned 6 million ounces of annual silver production over a robust 18-year mine life (and at negative cash costs). Under that scenario, I would rate these shares as substantially undervalued.

But Wildcat believes the imminent PEA and resource estimate may double the existing resource, which would imply a total resource some 240 million ounces of silver! Accordingly, Wildcat envisions a possible doubling of the project's annual production estimate, which implies potential to produce 12 million ounces of silver per year. Normally, I might be inclined to balk at such dramatic claims of impending project expansion. But Wildcat's executive chairman, Richard Warke, founded Ventana Gold and presided over that company's $1.5 billion buyout last year.

A look back over the phenomenal exploration results reported since the 2010 PEA confirms significant new discoveries that I would indeed expect to drive a meaningful resource expansion. I recently speculated that Hecla Mining will be forced into acquisitive growth to ward off the array of challengers nipping at its heels. But I erred in my suggestion of potential targets, since I know believe Wildcat Silver presents the neatest fit. With or without an advance from growth-starved Hecla, any semblance of the success Wildcat itself foresees for its updated PEA and resource estimates at the Hermosa project is bound to drive one of the more exciting advances among silver stocks in 2012.

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