ccu vs uml

I generally only invest in a company which offers a lot of value. UML certainly is a value stock. I always keep my eye out for other value stocks as well. I have been interested in CCU since their 50% fall, it is based on them not meeting production estimates which feel short by around 50%.

CCU (silver) & UML (gold) are similar mining companies, both have the same market cap at close to 90 million. CCU is ment to produce 2.5 million oz of silver per annum. Currently they are producing at 1/2 that amount. UML is in a similar position, they are currently producing 50,000 oz of gold per annum with a new mine in development that will increase their production to 100,000 oz pa.

Both companies CEO's expect they will eventually reach the production targets they are promising.

Which is the better value play?

CCU: 2,500,000 * 30 = $75 million in revenue.
I believe their cost of production is $15 per oz so their total profit is $37.5 million pa.

UML: 100,000 * 1600 = $160 million in revenue.
Cost per ounce was reported at $938 per oz (if I remember correctly from their last report)
profit $66.2 million pa.

These calculations are pretty rough but I believe they good enough to get a sense where each company stands. Both companies will be good investments if the PM prices do not crash and management do not screw up and deliver on their promises.

The clear winner is UML!
UML: Forward PE of 1.3
CCU: Forward PE of 2.4

I believe both these companies are great low risk exposure for those wanting a good gold or silver position. The price of Gold and Silver Bullion is too expensive now to consider purchasing, in fact in AUD, you could have sold Gold for $1600 and silver for $30 in 2008, the same price they are currently. The bullion does not have as much upside potential was when they were $250 and $3.5 per oz. The select few mining companies do have this upside potential even if the bullion stays where it is. UML: 10x bagger potential, CCU: 4x bagger potential. If Bullion has a steep rise to 2-3 times it's current price like many predict (most of these people talk out of their arse thou) you can pretty much slap an extra 0 onto their share price. In UML that would mean a 10k investment now would transform into approx $1 million if the stars align, or $10 per share.