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Bullboard - Stock Discussion Forum SilverCrest Mines Inc SVLC

NYSEAM:SVLC - Post Discussion

SilverCrest Mines Inc > Has this been noticed?
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Post by NaturalResource on Nov 18, 2013 1:17pm

Has this been noticed?

I was looking through Q3's Report and one bullet point caught my attention and made me start thinking and wondering. I'll point it out and add a thought:

Bullion inventory at September 30, 2013, included 53,131 ounces of silver and 1,819 ounces of gold.

[This STOCKPILE if it were Sold at that time would equal approx, $2.45MM Gold & $1.17MM Silver, Total=$3.62MM approx. but Withheld, and I hope its intentional and you continue to withhold a portion of at least 10% Production each QTR to build Up the Stockpile.

This was something Goldcorp had intentionally done in the 2001-2004 period accumulating over 8 Tonnes of Gold, more than the Canadian Gov had, and many other countries also. Unfortunately they sold it all prior to McEwen leaving and Gold breaking through the $500 mark, but still at a Higher price than if they would have sold it each QTR.

I also noticed the amount withheld is near 20%, a tad less for Silver and a bit above 20% for Gold, so I'm wondering if this is a Plan, because I can see how Added Income can be made each QTR by simply Selling CALL Options at a Higher STRIKE Price. You either get to keep the Premium or let it go at the Higher Price...sounds good]
Comment by black364 on Nov 19, 2013 11:02am
I'm not sure but there may be a hangover of gold and silver at the end of every quarter. The mine continues to churn metals daily so it may be a case of not being able to ship in time to be included in a quarterly report. I hope you're right though and they're holding back some product. 
Comment by NaturalResource on Nov 19, 2013 11:36am
You're probably right, but I hope SilverCrest, and other miners for that matter, would give serious thought to withholding a portion of Production each QTR. I recall very well when this was the Policy of Goldcorp through 2004, and it sure helped stoke the fire under their shares. But for me the biggest Plus is the ability to Add Income by Selling Higher Strike Priced Options. Like I said, they ...more  
Comment by ch08532 on Nov 19, 2013 1:42pm
I did notice the bullion portion as well in the report. Eric and Co. are pretty cleaver business men and I wouldn't be surprise this is the gameplan.  I hope it is.   On another note, the stock price is holding up very nicely throughout this downward pressure on Gold and Silver prices.  My gut is telling me that the market isn't throwing in the towel on this stock.   ...more  
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