Wednesday, April 25, 2012

SilverCrest mines (SVL) ~ investor lunch +++ primero mining (PPP)

santa elena mine, source: http://silvercrestmines.com/

well, SilverCrest mines is a GOLD + silver producer in mexico (2m Ag-equivalent ounces a year, 3/4 of what is currently generated by gold), makes profits, generates cash-flow, forces exploration, the mngmt is highly involved itself which is prolly a good sign for the remaining shareholders like me as well, vancouver based canadian company with market-cap of CAD 177m, eric sprott's investment company is the biggest single shareholder, low cash costs at $5.85 per 1 oz silver in last quarter and projected cash costs of approx $8 on average over the mine life .... btw, 2014 should be the year when the second mine goes into production and SLV should become a 4m Ag ounces producer a year by then ...

in sum, imho is silvercrest one of the companies which gonna survive the current slaughter in the junior commodity companies sector ... why? they simply dont need money to continue operations and in the worst case scenario they could finance the planned exploration / mine development out of their cash-flow or simply postpone the development of the 2nd mine ...

anything else? yep, the companies often compare their own market-cap / share price to well selected peer group in order 2 show how undervalued they are, u know? well, there was only 1 company even cheaper / more undervalued than silvercrest: primero mining. of course, ive bought few shares of primero today (primero is as well already a gold / silver producing company (in mexico) with strong cash-flow, low debt, etc and so on ;-)

go gold/silver bucks, go!
Post a Comment