Argentina-focused Alexander Mining claims it will start generating cash late next year and begin paying dividends in 2008.

Matt Sutcliffe, abrasive boss of AIM-listed Alexander, says preliminary copper production has already begun from its Leon project in north west Argentina and argues production and cashflow could begin a year from now. He says the company still has £14.6 million left from its £18.4 million float at 30p in April last year and no debt.

Independent estimates suggest Leon could hold an indicated and inferred resource of 75.8 million lbs of copper and nearly three million oz of silver at 17.97 grammes per tonne of ore. Alexander is currently drilling three outcrops there, at Vampiro, Negro and Arbor Solo, the last of which is hailed as most promising for big tonnage potential.

Elsewhere, the company, which uses as high a proportion of cheap local labour as possible, is drilling this week for silver at the Trinidad prospect and it is suggested other companies are starting to scout for uranium in the region. Alexander is also awaiting permission to probe gold prospects in Peru.

Sutcliffe, who says the company is pursuing prospects in parallel to hasten its move into production, has set the goal of achieving enough cashflow to sustain a more-than-token dividend as from mid-2008. He hopes his reward will be an Alexander share price strong enough to pull off some attractive corporate deals.

At 21.75p, well below their float price, the shares offer ample scope for improvement, sector sentiment permitting.