the mis-pricing of mining stocks by the market continues. there are legitimate reasons for some shares to be flat or declining even with strong metals prices. high-cost senior producers have been hurt by higher energy prices. junior exploration companies may not be able to raise money because of the credit crunch.

but companies like sso and svm don't have those problems, yet their shares are well off from their highs. another such example is first majestic, which reported news yesterday:

http://biz.yahoo.com/iw/080717/04168...

that's 74 meters of 359 g/ton of silver, plus base metals. economic value is over $200/ton, and almost a football field thick. and it's still open at depth, and along strike. this is a company that has the cash flow to grow without equity financing, and should double its production every two years. this news should have sent the stock much higher. instead it closed down 11 cents yesterday. today it's up 2 cents.

it's a much, much smaller example of the news from pitarrilla, which has grown to 660 millon oz despite the fact that most of the property is still unexplored, and didn't move the stock. these situations are not going to last forever.