MFN Minefinders Corp. Ltd. Ordinary Shares

Minefinders, Corp. (MFN) is ripe for the picking here. While metals have pulled back, they remain at historically high levels. This miner is ramping up production in time to take advantage and is a Zacks #1 Rank (Strong Buy).

Company Description

Minefinders is silver and gold mining company in Mexico and the Southwest U.S.

Production Up Sharply

On Aug 3 the company reported its quarterly results that included a 42% and a 363% increase in gold and silver production, respectively. Cost per ounce sold dramatically improved for both metals as well.

Earnings per share came in at $0.33, which was a penny higher than the Zacks Consensus Estimate and gave Minefinders its third consecutive earnings surprise.

Outlook Improving

Analysts raised their earnings estimates for both 2011 and 2012 after the news. Projections for this year are averaging $1.04 per share, up 9 cents. Next year's Zacks Consensus Estimate is at $1.44, up 29 cents.

Expected growth for this year is exponential, given Minefinders earned just 9 cents per share last year. Current estimates for next year forecast a 38% growth rate.

Trading at a Value?

There is no doubt that metal prices have been on a wild ride this year, as have the miners. But even after the recent plunge they are still at historically high levels. So, now may be a good time to take a chance on a precious metals miner.

Minefinders is trading at just 14 times forward estimates, and that leaves the PEG at a miniscule 0.2 times.

The Chart

You can see how much shares of MNF plunged, along with the metals sell off, over the past few weeks. But the bottom could be in and the MACD is on the verge of a buy signal. So, shares may get a boost from bottom fishers and momentum seekers.