GREY:LVNNF - Post by User
Post by
OnDaBallon Oct 21, 2013 9:59am
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Post# 21832920
Another analysis of the value of silver in-ground
Another analysis of the value of silver in-ground
For bulls on silver, there is a way to play the precious metal that’s literally dirt cheap: Buy it while it’s still in the ground, at the rock bottom price of only 51 cents an ounce.
That’s the price the stock market is assigning to the huge hoard of the metal that Silver Standard Resources says is likelyto be found around its mine in Argentina and its other exploration sites.
Metal that is locked in ore in the ground always trades at a substantial discount to the value of pure metal above ground, because mining companies have to shoulder the large costs of extracting the metal. But the Silver Standard discount appears extreme.
Arch rival Pan American Silver , which has a roughly similar ore resource totalling more than 1 billion ounces of the white metal, has a stock market value that implies its silver in the ground is worth about $2 an ounce, four times as lofty.
Obviously....
there are many ways and numbers that can be used in calculating value of minerals that are still in the ground. I guess the best bet is to wait til Spring 2014 for the LVN reports to be issued.