ProShares Short SmallCap600 (ARCA:SBB), Trade Ideas

Analyst Color

Price Target

Reiteration

Analyst Ratings

UPDATE: Desjardins Reiterates Buy Rating, Lowers PT for Sabina Gold &amp; Silver

Long Ideas

News

Short Ideas

Small Cap

Trading Ideas

ETFs

CRIC

FITB

NTRS

PVTB

Rydex ETF Trust S&P Smallcap 600 Pure Value ETF

SFUN

SLYV

SOHU

SRTY

Small Cap Top Performers in January

Earnings

Previews

HIBB

PSCD

SLYG

Cabela&#39;s Earnings Preview: Looking to Extend a Streak

ProShares Short SmallCap600

Scorpio Tankers Inc. 7.00% Senior Notes due 2025

SIMPLY BETTER BRANDS CORP by Simply Better Brands Corp.

Simply Better Brands Corp

SEIBELS BRUCE GROUP INC by Seibels Bruce Group, Inc. (THE)

Seibels Bruce Group Inc

Sabana Industrial REIT

Schibsted ASA

Sugar futures are trading lower by $0.26 per pound in Wednesday's session. After finding resistance at Tuesday's close ($14.88) off the open, it declined to $14.42 before rebounding to its current level.

Futures

Movers & Shakers

Technicals

Commodities

Intraday Update

Markets

General

#Premarket Prep Technical Update - Sugar Trading Sharply Lower

Sugar futures are trading lower by $0.21 at $15.61 per pound in Wednesday's session. After matching Tuesday's high ($15.86), reaching $15.87, it declined to $15.56. That level coincides with Tuesday's low ($15.54).

#Premarket Prep Technical Update - Sugar Trading Lower

Sugar futures are trading lower $0.30 at $15.34 in Monday's session. After breaching its lows from Thursday ($15.66) and Friday ($15.61), it declined to $15.30. Sugar has not traded at these levels since September 2010.

#Premarket Prep Technical Update - Sugar Futures Trading Lower

In a report published earlier today, Desjardins Capital Markets reiterated its Buy rating for Sabina Gold &amp; Silver Corp. (TSX: SBB), but lowered its price target from C$8.00 to C$6.75, in response to the positive PEA released for the Back River gold project in Nunavut.

Desjardins went on to say “The Back River PEA emphasizes the importance of the higher grades and continuity of the deposits on the Back River property. We believe that the project remains highly prospective for new discoveries of similar, if not better, grade, which should have a further positive impact on the project economics. Given the favourable political jurisdiction and strong exploration newsflow throughout 2012, we are maintaining our Buy–Speculative rating on the shares.”

Sabina Gold &amp; Silver Corp. closed yesterday at C$2.26.

UPDATE: Desjardins Reiterates Buy Rating, Lowers PT for Sabina Gold & Silver

Here's a quick look at some of the top performing dividend stocks, year to date, that have a market cap of $1 billion or less.

E-House (China) Holdings (NYSE: <a class="ticker" href="/stock/ej#NYSE">EJ</a>) shares are trading about 38% higher year to date despite pulling back more than 4% last week. The real estate company announced in December that it would merge with China Real Estate Information Corp. (NASDAQ: <a class="ticker" href="/stock/cric#NASDAQ">CRIC</a>). The dividend yield is 4.2% and the long-term EPS growth forecast is 30.7%. E-House is based in Shanghai and was founded in 2000. But the stock has narrowly underperformed CRIC over the past six months.

KB Home (NYSE: <a class="ticker" href="/stock/kbh#NYSE">KBH</a>) is up almost 53% in the past month. The stock got a boost earlier this month when competitor Lennar (NYSE: <a class="ticker" href="/stock/len#NYSE">LEN</a>) announced a positive earnings surprise. Last week CBS (NYSE: <a class="ticker" href="/stock/cbs#NYSE">CBS</a>) CEO said he would leave the KB Home board. This Los Angeles-based homebuilder has a market cap of $867.3 million, a dividend yield of 2.5% and a long-term EPS growth forecast of 10.3%. The stock has outperformed competitors Lennar and Pulte Group (NYSE: <a class="ticker" href="/stock/phm#NYSE">PHM</a>) year to date.

Mahanagar Telephone Nigam (NYSE: <a class="ticker" href="/stock/mte#NYSE">MTE</a>) is more than 45% higher year to date, including more than 14% just in the past week. The company provides telecommunication services in Delhi and Mumbai, and revenues for the fiscal year are forecast to be 5.6% higher year over year. The company was founded in 1986. It has a market cap of $381.1 million and its dividend yield is 3.5%. But the stock has underperformed the broader markets over the past six months.

Noranda Aluminum (NYSE: <a class="ticker" href="/stock/nor#NYSE">NOR</a>) shares are trading about 33% higher year to date and rose 6% in the past week. Full-year revenues are forecast to be 20.6% higher year over year when the Tennessee-based company reports on February 15. The company has a market cap of $738.2 million, a long-term EPS growth forecast of 16.2% and a dividend yield of 1.1%. Over the past six months, the stock has outperformed larger peers Alcoa (NYSE: <a class="ticker" href="/stock/aa#NYSE">AA</a>) and Aluminum Corp. of China (NYSE: <a class="ticker" href="/stock/ach#NYSE">ACH</a>).

Privatebancorp (NASDAQ: <a class="ticker" href="/stock/pvtb#NASDAQ">PVTB</a>) is about 31% higher than a month ago, but more than 12% below the 52-week high. The company just reported better-than-expected Q4 EPS and a sizable decrease in nonperforming loans over the past year. This regional bank is based in Chicago and has a market cap of $1.0 billion. Its dividend yield is 0.3%. Over the past six months, the stock has outperformed competitors Fifth Third Bancorp (NASDAQ: <a class="ticker" href="/stock/fitb#NASDAQ">FITB</a>) and Northern Trust (NASDAQ: <a class="ticker" href="/stock/ntrs#NASDAQ">NTRS</a>).

SouFun Holdings (NYSE: <a class="ticker" href="/stock/sfun#NYSE">SFUN</a>) is up almost 49% in the past month and more than 10% higher than a year ago. The Chinese company operates an internet portal dedicated to real estate. Earnings are forecast to show a 57% gain for 2011, its sixth straight year of profit improvement. The dividend yield is 9.9% and the market cap is $372.7 million. The long-range EPS growth forecast is 36.7%. Over the past six months, the stock has outperformed competitor Sohu.com (NASDAQ: <a class="ticker" href="/stock/sohu#NASDAQ">SOHU</a>).

Tsakos Energy Navigation (NYSE: <a class="ticker" href="/stock/tnp#NYSE">TNP</a>) is more than 37% higher year to date, including more than 6% in the past week. The company has paid consecutive quarterly dividends since 2002. This Greek tanker operator has a $302.7 million market cap and a dividend yield of 9.2%. Revenue for the fiscal year is forecast to decline 2.6%. The stock has outperformed competitors Frontline (NYSE: <a class="ticker" href="/stock/fro#NYSE">FRO</a>) and Teekay (NYSE: <a class="ticker" href="/stock/tk#NYSE">TK</a>), as well as the broader markets, over the past three months.

See also: <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/01/2297576/benzingas-microcap-movers-for-friday-january-27-2012">Benzinga's Microcap Movers for Friday January 27, 2012</a>.

<div id="action-items">ACTION ITEMS:

Bullish: Investors interested in exchange traded funds focused on small caps might want to consider the following trades:

<ul><li>Rydex S&amp;P Small Cap 600 Pure Value (NYSE: <a class="ticker" href="/stock/rzv#NYSE">RZV</a>) is up about 11% year to date.</li>
<li>SPDR S&amp;P 600 Small Cap Value ETF (NYSE: <a class="ticker" href="/stock/slyv#NYSE">SLYV</a>) is up almost 9% year to date.</li>
<li>iShares MSCI EAFE Small Cap Index (NYSE: <a class="ticker" href="/stock/scz#NYSE">SCZ</a>) is up almost 9% year to date.</li>
</ul>Bearish: Traders may prefer to consider these alternative positions:

<ul><li>ProShares Short Small Cap 600 (NYSE: <a class="ticker" href="/stock/sbb#NYSE">SBB</a>) is trading near the 52-week low.</li>
<li>ProShares UltraShort Small Cap 600 (NYSE: <a class="ticker" href="/stock/sdd#NYSE">SDD</a>) is trading near the 52-week low.</li>
<li>ProShares UltraPro Short Russell 2000 (NYSE: <a class="ticker" href="/stock/srty#NYSE">SRTY</a>) is trading near the 52-week low.</li>
</ul>Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.</div>

Cabela's (NYSE: <a class="ticker" href="/stock/cab#NYSE">CAB</a>) is scheduled to report third-quarter 2011 results Thursday, October 27, before the markets open. Consumers have been clamping down on discretionary spending due to economic conditions. But this specialty retailer is looking to continue its streak: it has seen net income rise in three straight quarters and revenue has risen in the past four quarters.

Analysts on average predict that Cabela's will report earnings of $0.44 per share, up 29.5% from the same quarter of last year. That EPS estimate is unchanged over the past 90 days. And note that Cabela's earnings have not fallen short of consensus estimates in the past ten quarters.

The forecast also calls for the company to post revenues of $681.5 million, which would be 5.9% higher than a year ago. Looking ahead to the current quarter, which will include the holiday season, analysts so far are looking for 4.0% year-over-year growth in revenues. And the forecast for the full year so far calls for revenues up 5.0% from a year ago, with per-share earnings 12.0% higher.

The Company

Cabela's is a retailer and direct marketer of hunting, fishing, camping and related outdoor merchandise. The Nebraska-based company operates 33 stores in the United States and Canada, as well as its subsidiary, World's Foremost Bank. The company was founded in 1961 and now has a market cap of $1.8 billion.

During the three months that ended in September, the company announced new stores in Charleston, W.V., and Rogers, Ark. Cabela's also announced that it had hired a new executive in charge of marketing and e-commerce.

Performance

The company has a long-term earnings per share growth forecast of 14.6% and a PEG ratio of 0.9. Its 14.5 P/E ratio is lower than the industry average, and its 7.8% operating margin is higher than the industry average. Seven out of 11 analysts who follow the stock rate it a Buy or Strong Buy, and they have a mean price target of $30.44 per share, which is 15.6% higher than the current share price.

The share price has jumped more than 16% in the past month, finally recovering from the sell-off in August. The stock is about 18% higher than at the beginning of the year, but more than 20% lower than the 52-week high of $32.37 per share. The price is now above the 50-day and 200-day moving averages. The stock has outperformed competitors such as Dick's Sporting Goods (NYSE: <a class="ticker" href="/stock/dks#NYSE">DKS</a>) and Hibbett Sports (NASDAQ: <a class="ticker" href="/stock/hibb#NASDAQ">HIBB</a>) since the beginning of the year.

Action Items:

Bullish: Investors interested in exchange traded funds invested in Cabela's might want to consider the following trades:

<ul><li>SPDR S&amp;P Retail (NYSE: <a class="ticker" href="/stock/xrt#NYSE">XRT</a>) is more than 20% higher than a year ago.</li>
<li>SPDR S&amp;P 600 Small Cap Growth ETF (NYSE: <a class="ticker" href="/stock/slyg#NYSE">SLYG</a>) is about 11% higher than a year ago.</li>
<li>PowerShares S&amp;P SmallCap Consumer Discretionary (NASDAQ: <a class="ticker" href="/stock/pscd#NASDAQ">PSCD</a>) is more than 5% higher than a year ago.</li>
</ul>

Bearish: Traders may want to consider these alternative positions:

<ul><li>ProShares UltraShort SmallCap600 (NYSE: <a class="ticker" href="/stock/sdd#NYSE">SDD</a>) is more than 7% higher than six months ago.</li>
<li>ProShares Short SmallCap600 (NYSE: <a class="ticker" href="/stock/sbb#NYSE">SBB</a>) is more than 7% higher than six months ago.</li>
</ul>

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Cabela's Earnings Preview: Looking to Extend a Streak

Coinstar (NASDAQ: <a class="ticker" href="/stock/cstr#NASDAQ">CSTR</a>) is scheduled to report third-quarter 2011 results Thursday, October 27, after the closing bell. The company's Redbox self-service DVD-rental business seems well positioned to pick up some of those customers who continue to abandon Netflix's (NASDAQ: <a class="ticker" href="/stock/nflx#NASDAQ">NFLX</a>) DVD-by-mail service following this summer's price change.

Analysts on average predict that Coinstar will report earnings of $0.88 per share, which is up 25.0% from the same quarter of last year. That EPS estimate is unchanged over the past 60 days. And note that Coinstar's earnings have not fallen short of consensus estimates in the past six quarters.

The consensus forecast also calls for the company to post revenues of $461.8 million, which would be a 21.5% increase from a year ago. Looking ahead to the current quarter, which will include the holiday season, analysts so far are looking for 23.0% year-over-year growth in revenues. And the forecast for the full year so far calls for revenues up 25.4% from a year ago, with per-share earnings 34.3% higher.

The Company

Coinstar provides automated retail services primarily in the United States, Canada, Puerto Rico, the United Kingdom, and Ireland. The Redbox business operates more than 31,000 DVD-rental kiosks, while the Coinstar business operates more than 18,000 self-service coin-counting kiosks. The company was founded in 1991 and has a market cap of $1.6 billion.

During the three months that ended in September, the company announced an additional $250 million in share buybacks, appointed a new member to its board and added videogames to an additional 5,000 Redbox kiosks.

Performance

The company has a long-term earnings per share growth forecast of 18.6% and its return of equity is 19.4%. While the P/E ratio is higher than the industry average, so is Coinstar's operating margin. The PEG ratio is 0.8. Eleven of 16 analysts who follow the stock consider it a Buy or Strong Buy, and they have a mean price target of $61.62 per share, which is more than 15% higher than the current share price.

The share price has surged about 26% in the past month but is still about 22% lower than the 52-week high of $67.56. The current share price is above the 50-day and 200-day moving averages. The stock has outperformed competitors such as Netflix and Western Union (NYSE: <a class="ticker" href="/stock/wu#NYSE">WU</a>) over the past six months.

Action Items:

Bullish: Investors interested in exchange traded funds invested in Coinstar might want to consider the following trades:

<ul><li>Rydex S&amp;P SmallCap 600 Pure Growth (NYSE: <a class="ticker" href="/stock/rzg#NYSE">RZG</a>) is more than 10% higher than a year ago.</li>
<li>iShares S&amp;P SmallCap 600 Growth (NYSE: <a class="ticker" href="/stock/ijt#NYSE">IJT</a>) is about 10% higher than a year ago.</li>
<li>PowerShares S&amp;P SmallCap Consumer Discretionary (NASDAQ: <a class="ticker" href="/stock/pscd#NASDAQ">PSCD</a>) is more than 5% higher than a year ago.</li>
</ul>

Bearish: Traders may want to consider these alternative positions:

<ul><li>ProShares UltraShort SmallCap600 (NYSE: <a class="ticker" href="/stock/sdd#NYSE">SDD</a>) is more than 7% higher than six months ago.</li>
<li>ProShares Short SmallCap600 (NYSE: <a class="ticker" href="/stock/sbb#NYSE">SBB</a>) is more than 7% higher than six months ago.</li>
</ul>

Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

CSTR

iShares S&P SmallCap 600 Growth Index Fund

NFLX

Rydex ETF Trust S&P Smallcap 600 Pure Growth ETF

Earnings Preview: Coinstar Still Cashing In

In bear markets, there are several ways of making money, but most are speculative. Examples include shorting stocks (where your potential for loss is unlimited) and buying puts (which are very volatile and have expiration dates). However, there is a less risky way of playing the market on the short side, and that is through the use of bearish exchange traded funds also known as ETFs. 
An example is ProShares Short Dow30 (<a class="ticker" href="/stock/dog#">DOG</a>), an ETF which invests in derivatives with a goal of the inverse of the daily performance of the Dow Jones Industrial Average Index. This ETF was up 1.6% during the last month, versus the Trading-Inverse Equity category which was down 7.48% and the S&amp;P 500 was down 1.13%.
If you are negative on NASDAQ stocks, you may want to consider the ProShares Short QQQ (<a class="ticker" href="/stock/psq#">PSQ</a>) ETF, which has a goal of attempting to achieve the opposite of the daily performance of the NASDAQ-100 Index. The ETF is up 0.98 for the last month.
For investors who think that small cap stocks are in for a continuing downturn, the ProShares Short SmallCap600 (<a class="ticker" href="/stock/sbb#">SBB</a>) is an option. This ETF attempts to achieve the inverse of the daily performance of the S&amp;P SmallCap 600 Index. The ETF was up 1.12% for the latest month.
Some investors that are bearish and want some real action have the option of using leveraged bearish ETFs. These ETFs can provide twice or three times the the return of an unleveraged ETF. The Direxion Daily Financial Bear 3X Shares (<a class="ticker" href="/stock/faz#">FAZ</a>) has a goal of achieving 300% of the inverse of price performance of the Russell 1000 Financial Services Index. The ETF had an increase of 7.06% for the last month.
One issue to be aware of when investing in these ETFs is that over long periods of time, they may not even come close to matching the inverse of of the index. These ETFs are generally designed to achieve their goals on a day by day basis. 
If you like bearish ETFs, you can get a free list of <a href="http://WallStreetNewsNetwork.com">Short ETFs</a> and a second list of <a href="http://WallStreetNewsNetwork.com">Leveraged Short ETFs</a>at WallStreetNewsNetwork.com.
Author does not own any of the above. By <a href="http://Stockerblog.com">Stockerblog.com</a> 
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How to Make Money in a Falling Stock Market

Momentum investing is one of the most popular strategies employed on Wall Street. The theory goes a little something like this; stocks that outperform tend to continue their out-performance.

It's kind of the street's version of Newton's first law of motion:

 “An object at rest stays at rest and an object in motion (momentum stock) stays in motion with the same speed and in the same direction unless acted upon by an unbalanced force (ETF Stocks think most traders qualify as unbalanced.)” 

While picking individual momentum stocks might be used to justify millionaire hedge-fund managers' incomes, a study published in The Journal of Finance suggests the average investor can do better by focusing on industries rather than stocks.

In the Journal of Finance piece, “Do Industries Explain Momentum?”, researchers Tobias J. Moskowitz and Mark Grinblatt found that “Once returns are adjusted for industry effects, momentum profits from individual equities are significantly weaker and, for the most part, are statistically insignificant.” In other words, being in the right industry is more important than being in the right stock and accounts for almost all of the performance.

And sector investing actually outperforms individual stocks in the short-term, “Unlike individual stock momentum, industry momentum is strongest in the short-term (at the one-month horizon) and then, like individual stock momentum, tends to dissipate after 12 months, eventually reversing at long horizons. Thus, the signs of the short-term (less than one month) performances of the industry and individual stock momentum strategies are completely opposite, yet the signs of their intermediate and long-term performances are identical.”

That's exactly why every week ETF stocks reviews and analyzes each Dow Jones industry chart. We are looking for the sectors that we breakdown into four categories:

•	Mature Bull 
•	Emerging Bull 
•	Emerging Bear 
•	Mature Bear 

This process helps us (and you) identify the sectors and exchange traded funds that are buy and sell candidates.
EMERGING BULL: industries with positive technical analysis traits that are in the early stages, indicating possible above average returns in the near-term:

•	Beverages 
•	Defense 
•	Electricity 
•	Multiutilities 
•	Non-Durable Household Products 
•	Utilities 
•	Distributers and Vintners 

MATURE BULL: industries that have outperformed and their charts suggest the above average returns could continue:

•	Biotech 
•	Personal Products 
•	Food and Drug 
•	Food and Beverages 
•	Fixed Telecom 
•	Property &amp; Casualty Insurance 
•	Business Support 
•	Personal Goods 
•	Pharmaceuticals 
•	Drug Retail 
•	Railroad 
•	Restaurants and Bars 
•	Soft Drinks 
•	Food Producers 
•	Healthcare 
•	Insurance Brokers 
•	Telecommunications 
•	Toys 
•	Gas &amp; Water Utilities 
•	Water 

ETF Stocks would consider taking some dollars from the following industries and putting them into some of the sectors mentioned above.
MATURE BEAR: industries that have under-performed and based on their current chart patterns and could continue to lag:

•	Autos 
•	Business Training 
•	Basic Resources 
•	Telecom Equipment 
•	Platinum &amp; Precious Metals 
•	Home Improvement 
•	Technology 
•	Tech Hardware 

EMERGING BEAR: industries that have fresh negative technical analysis set ups and could have subpar performance in the weeks ahead:

•	Electronic Equipment 
•	Aluminum 
•	Autos 
•	Auto Parts 
•	Building Materials 
•	Gambling 
•	Coal 
•	Construction Materials 
•	Electronic Components 
•	Electrical Equipment 
•	Industrial Machinery 
•	Industrial Engineering 
•	Low Cap 
•	Real Estate 
•	Steel 
•	Small Cap Growth 
•	Commercial Vehicles 
•	Heavy Construction 
•	Tires 
•	Transportation 
•	Small Cap Value 

ETF investors could do the obvious and pick a sector ETF from the two bull categories. PowerShares Dynamic Food &amp; Beverage (<a class="ticker" href="/stock/pbj#">PBJ</a>) would cover emerging bull member beverages and mature bull industry's food, soft drinks and food producers.

If the current correction and losing streak continues, an inverse ETF from either bear list could be a profitable choice if selling resumes. Since small caps show up a couple of times in the “bad columns”, an ETF like ProShares Short SmallCap600 (<a class="ticker" href="/stock/sbb#">SBB</a>) might warrant some consideration. SBB seeks daily investment results, before fees and expenses, which correspond to the inverse (opposite) of the daily performance of the S&amp;P SmallCap 600. In English, when the SmallCap 600 drops 1%, SBB gains roughly 1%.

Another strategy that can profit no matter if the stocks go up or down is what we call a ZERO Trade. It's real simple, buy a sector ETF that best fits either bull list and short an equal dollar amount of an ETF from the bear lists. As long as what you buy continues to outperform the shorted exchange traded fund, no matter how much the stock market goes up and/or down, you make money! How good would that feel?

We certainly hope that you find our industry forecasts helpful in managing your portfolio. Of course, there are no guarantees, but it has been our experience that being in the right industries, and avoiding the wrong ones, can account for a lot of your performance.

Sector ETFs

Specialty ETFs

ETF Stocks Weekly Sector Performance Scorecard

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 14, 2009) - Sabina Silver Corporation (the "Company") (TSX VENTURE:SBB) reported today the financial results for the quarter ended June 30, 2009.
The first half of 2009 culminated in the accomplishment of a number of Company initiatives.
Hackett River
During the first half, the Company announced an updated mineral resource estimate for the Hackett River Project. The updated mineral resource returned significant improvements over the previous estimate announced in 2007. In conjunction with ongoing resource work related to the pre-feasibility study ("PFS"), metallurgical studies were also conducted. The more comprehensive testing undertaken for metallurgical testing has returned significantly better recoveries, particularly for silver. As with the mineral resource estimate which identified increases in grade, tonnage and open pit material, these studies continue to demonstrate the quality and robust nature of the Hackett River deposits.
Based on the positive results from the resource and metallurgical studies, the opportunities identified from the new generated resource model and the significant exploration potential identified at Hackett in the fall of 2008, the Company reported that it has engaged PEG Mining Consultants ("PEG") to undertake an update to the initial Preliminary Economic Assessment on the project (PEA) to provide insight to management on how best to proceed with the PFS. This updated PEA would incorporate the new resource model and improved recoveries as well as examine increased production rates, methods of mining and infrastructure.
Although already one of the largest undeveloped projects of its type in the world, significant exploration potential still exists at Hackett River. Current exploration work at Hackett River is focussed on identifying higher grade near surface mineralization with targets testing the expansion of existing deposits as well as looking for new discoveries on the project.
Back River
At the Company's AGM held on June 4, 2009, shareholders voted overwhelmingly in favour of the acquisition of the Back River assets from Dundee Precious Metals. This acquisition has significantly increased the precious metals component of Sabina's resource base. The Company now controls 205 million indicated and an additional 64 million inferred ounces of silver along with 1.2 million indicated ounces of gold and an additional 1.1 million inferred ounces of gold. These gold ounces are located in close proximity to the contemplated Hackett River infrastructure and both projects will benefit from logistical, exploration and management synergies.
Exploration at Back River is concentrated at the Goose Lake deposit where the primary focus is to test several prospective targets proximal to the existing resource.
Financing Activities
Also during the second quarter the Company completed an equity financing for proceeds of $18 million. This financing replenishes Sabina's treasury after the costs of the Back River acquisition and enables the Company to work on the Back River projects right away as well as push forward with more work at Hackett River.
Corporate Development
Management continues to pursue the acquisition of value added assets with a focus on advanced exploration precious metals projects that would diversify our geographical asset base.
Exploration Update
Aggressive summer drilling campaigns at Hackett River and Back River are underway and will continue until mid-September of this year. Drilling is progressing well with approximately 30 holes completed testing priority exploration and resource expansion targets at both Hackett River and the Goose Lake area. Assay results are expected within the next two to three weeks and will be reported once compiled.
"We are very much looking forward to what the rest of 2009 brings," said Tony Walsh, President &amp; CEO, "Although Hackett River has reached a critical mass sufficient to support infrastructure on a standalone basis, Sabina as a company needs to build the critical mass to be able to obtain the resources to finance, build and operate the project. We have not fully exploited the leverage the exploration potential that Hackett can provide and have new exploration opportunities at Back River &amp; Wishbone. Management believes the systematic growth of our Company's value can be driven by exploration success at Hackett and Back River as well as by continuing to demonstrate the world class nature of the Hackett River project."
Financial Results
For the three and six month periods ended June 30, 2009, the Company reported net losses of $1.5 million and $1.9 million respectively compared to $7,000 and $0.4 million in the corresponding periods of 2008. The loss for the six month period in 2009 was $1.5 million higher due largely to higher operating expenses, higher stock-based compensation and lower interest income, partially offset by a higher unrealized gain on held for trading investments.
The company had cash and short term investments of $38.3 million at June 30, 2009 compared to cash and short term investments of $35.0 million at December 31, 2008. Additionally the company holds Canadian equities with an estimated market value of $7.3 million at June 30, 2009 compared to an estimated market value of $4.5 million at December 31, 2008.
For the full June 30, 2009 financial statements and Management's Discussion and Analysis, please see the Company website at <a href="http://www.sabinasilver.com" title="www.sabinasilver.com">www.sabinasilver.com</a>.
Quality Assurance
Mineral resources for Goose Lake and George Lake were generated by RSG Global Consulting Pty Ltd (Coffey Mining) in September 2007, and are posted on <a href="http://www.sedar.com" title="www.sedar.com">www.sedar.com</a>.
The Hackett River mineral resource estimate was prepared by Mr. Albert Chong, P.Geo., Senior Geologist of AMEC Americas Limited. Mr. Chong is a qualified person as defined by National Instrument 43-101. CIM Definition Standards (2005) have been used in defining the mineral resource categories. The Hackett River resource estimate was announced on March 11, 2009. Mr. John Wakeford, P.Geo. and a Qualified Person in accordance with NI 43-101 has reviewed the resources referred to above and attached and has approved their dissemination.
SABINA SILVER CORPORATION is a Canadian public mineral exploration and development company with assets at the Hackett River silver-zinc and the recently acquired Back River gold project and Wishbone claims in Nunavut along with several projects in the Red Lake gold camp. The Company is well capitalized with approximately $45.7 million in cash and marketable securities at June 30, 2009. The strategy to grow the company focuses on two mandates: 1) to continue to focus on enormous exploration and development potential of the Hackett River silver-zinc and Back River gold projects; and 2) maintain a strong balance sheet to acquire accretive precious metals assets.
Forward Looking Statements
Statements relating to the work at Hackett River and the Back River assets and the expected results of this work are forward-looking statements within the meaning of securities legislation of certain Provinces in Canada. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in gold prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; uncertainties involved in the estimation of metal reserves and resources; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from Sabina's operations and other risks and uncertainties, including those described in Sabina's Annual Report for the year ended December 31, 2008.
Forward-looking statements are based on the beliefs, estimates and opinions of Sabina's management on the date the statements are made. Sabina undertakes no obligation to update these forward-looking statements should management's beliefs, estimates or opinions, or other factors, change.
This news release has been authorized by the undersigned on behalf of Sabina Silver Corporation.
Tony Walsh, President and CEO