Putting together a Zeal Report is a challenging task.  First we build a giant spreadsheet and populate it with every publicly-traded company (in the US and Canada) in the sector we are delving into.  We look at every company in that sector's universe, learning about their projects and recording key fundamental metrics we use to help narrow down the field.  Over literally hundreds of hours spanning several months, we gradually whittle the sector's population down to our favorites.  Then we write comprehensive fundamental profiles on each.

 

 

This tour will walk you through one of these profiles.  The company discussed in this profile from our 6/09 silver-stocks report is Silvercorp Metals.  While SVM was only one of the dozen companies profiled on this report, its profile shows what to expect.  The depth of our research is incredible, winning us worldwide renown.  We dig deep into SEC reports, corporate presentations, and websites.  After we process all this highly-technical data, we carefully weave it into easily-readable and fascinating profiles.  Thumbnails below link to large screenshots.

 

Page 1 of 4  We set the stage with a general strategic overview of each stock.  This introduction often includes backgrounds on a company's history, some of the key people involved, and its core areas of operation.  Sometimes we hear from the companies themselves after a profile is published (they don't know in advance), and they are amazed at the depth and accuracy of our backgrounds.

 

While no company is perfect, the high-potential ones are all unique.  They stand out from their peers in many ways that radically increase the odds investors will find them highly-desirable in the future.  Investing is all about uncovering lesser-known companies that many more investors will "discover" later and want to own.  This future demand drives up stock prices for early Zeal Reports investors.

 

Here in Silvercorp's case, this company was a Western pioneer in mining silver in China.  It entered China early, when most Western companies feared its political environment and silver was dirt-cheap (under $5).  Its CEO had founded another Zeal favorite company that would mine gold in China, so he saw its potential.

 

 

Page 2 of 4  Next we dive into each company's fundamental prospects on a project-by-project basis.  We outline each of its major mining operations, development projects, and exploration projects.  A company's current production comes from its existing mines, its future production from its development projects, and its long-term longevity from its exploration pipeline.  All are crucial.

 

We generally discuss a company's most-important operating projects first, usually as defined by current production.  Next development and exploration projects are discussed in order of estimated initial production.  After you read a project-by-project fundamental analysis of a company, you'll really understand its prospects.

 

Silvercorp's flagship mine encompasses the Ying district in central China.  Its rich silver/lead/zinc veins had been tapped for centuries in small-scale mining operations.  Silvercorp brought modern exploration and production techniques to this region, discovering several dozen high-grade silver veins earlier miners had missed.  They are so rich in lead and zinc that SVM's cash costs are negative!

 

 

Page 3 of 4  Although companies' flagship projects gradually become well-known, it is always important to consider their secondary projects too.  These projects are smaller today, but have the potential to grow large in the future.  They can generate big production growth and provide critical operational diversification.  You can't understand a company without considering all its projects as a whole.

 

This holistic view is especially important for commodities producers, as their primary operations are continuously being depleted.  A company's future direction and potential is dependent on its entire project portfolio, not just its main project today.  Wall Street often fails to fully appreciate and value pipeline projects, which offers astute investors opportunities to buy stocks at deep discounts.

 

While Silvercorp has an entire district to explore in Ying, it continues to buy up exploration projects elsewhere in China.  In addition to providing geographical and geological diversification, these secondary projects greatly increase the odds that Silvercorp will have plenty of silver to mine for decades to come.

 

 

Page 4 of 4  After a company's various projects, its financials must be carefully considered.  Unfortunately many commodities stocks with excellent deposits have hobbled themselves and severely reduced their future potential through poor financial decisions.  These can include excessive stock dilution, unfavorable debt covenants, and of course hedging.  All these risks must be considered up-front.

 

Obviously if a company makes the cut and is profiled as one of our favorites, we are comfortable with its financial situation.  While very few companies look perfect financially, all the ones we profile look solid and strong relative to their sector peers.  Our financial research is invaluable, as it is exceedingly hard if not impossible for laymen to dig into and understand long and technical SEC reports.

 

Finally we close each stock profile with a summary.  Its table includes a lot of key fundamental data including production, reserves, and resources.  In our ultimate bottom line, we outline why each company made our list of favorites, why its fundamental potential looks so impressive, and why investors should check it out.

 

 

In the past, high-quality research like this was only available to the largest and most-favored brokerage clients and deep-pocketed institutional investors.  Average individuals didn't have access to it and couldn't afford it if they did.  But since so many investors buy our reports and support the hundreds of hours of painstaking work each report takes, we can offer this research at an amazing price.  All our hard-won wisdom, knowledge, and trading experience is deftly applied to every company profiled.  You'll learn much about high-potential stocks.

 

There is no better research value out there than Zeal Reports.  Buy one today and learn about a sector's best!