profit fairy. ;) I know it’s hard to believe but true.
Link at the end to an automated site at end which I thought insightful, data sourced from Finnhub.io and SEC filings.
IMO it might be said that based on Q1 performance that this stock is going nowhere fast at current silver price, unless Phil pulls a rabbit out of the hat, especially at KH. Surprise me ;). At the end of the day I want to see the hard numbers. Something is holding this stock back.
HL is a long term employerfocused on safety and is trying with the environment (like all mines they have their warts)
GC and LF are sort of stable (and should stay so at current silver price) so no big surprise. CB switched to surface, even with the higher return.
What I don’t like is shareholders returns, in fact they actually cost based on even simple inflation. I would like to hear from retail investors where they think the money is, in other words a business case especially for KH.
I’m looking for two things, a meaningful dividend and increase in share price. Sorry but if that’s not in the cards then what’s the point for shareholders.
HL has many investment/interests areas including Canada, USA and overseas and so forth. It would be surprising if they didn’t as mines are a depleting resource and new ones don’t just start up (in fact in Canada/USA it sometimes appears it’s a hostile environment).
KH in the case of HL is a case in point. IMO Unless KH starts processing 500 TPD at higher grade there’s no net. Hl has bought more big equipment (mining and stabilization), think large capital outlay, to chase narrow veins. To me that means old school vs new technology of equipment that simply wasn’t available before. So we’ll see…
The comment, we expect to be here for decades. That made me smile; I don’t think I’ll see a return on my investment if it takes that long. ;)
I don’t see bangles in India as a talking point lol (they prefer gold, if silver is too expensive they’ll switch to copper). Don’t believe me go travel there for a while. As for PV, cars, electronics and all things in between high silver prices will just force the use of alternatives.
There is a is a fair amount of retail investor obfuscation in silver and considering institutions own like 60%+/- of HL it leaves little room for imagination.
For retail the only thing I see short term is people like Roberto who have figured this out and see the small/ish close term cycles. :)
IMO as for long term retail investment HL there will be at least a 5% loss on investment (considering the acquisition ease of that rate of return) plus whatever yearly inflation money you want to add. :}
In the meantime if you own HL great, I would just like to see a better return.
Best of luck to all, comments always welcome.
https://valueinvesting.io/HL/valuation/dcf-growth-exit-5y