hi hobbers,

Maybe the latest Blackmont coverage from this morning might be one of the reasons...

March 13, 2009 - 08:39 AM
ECU Silver Mining Inc. (ECU-TSX) BUY
Mill Acquisition is the Right Move for the Times Richard Gray

ECU Silver has recently completed two significant milestones that should provide near-term cash flow without sacrificing any of the long-term upside at its promising Velardeña property. At a time when investors are rapidly fleeing the pure exploration-focused (i.e. no cash flow) companies for those with sustainable production and cash flow, ECU managed to purchase an operating facility that will allow for immediate processing of already-mined oxide stockpiles and near-surface oxide resources.
The cash flow from this small yet robust operation is expected to reduce the near-term financial risk by not only keeping the lights on, but also by funding the exploration of the larger sulphide resource that represents the longer-term upside for the company. We believe this combination of low-risk, near-term cash flow and higher-risk, longer-term potential makes ECU Silver an ideally suited investment in the precious metal space.
Our updated NAV of $0.75 per share ascribes $67.5 million to the discounted cash flow from the oxides and an in-situ value of $0.50/oz of silver equivalent (based on silver and gold only) to the sulphide resource. We believe this a conservative NAV and at the current P/NAV multiple (0.55 times), ECU Silver is an attractive investment with low near-term financial risk and exceptional upside given the potential of the Velardena property. We maintain our BUY recommendation. Our new target price of C$0.90 per share is based on 1.0 times P/NAV