Silvercrest Metals Inc T.SIL

something nasty in the woodshed?

[stockpunter]

SIL up 2% and silver price up 4%.  Increase in short position.  Big increase in AISC?  

Or, great exploration news, short squeeze, takeover.....

[wideopenthrottl]

why would you think a big increase for all in sustaining costs...mexican goverment or something else? 

[stockpunter]

Inflation has increased the costs of mining, in general, so AISC goes up.   I think there were hints in the last few news releases that projections were going to be revised.  However, there could be other very good news that would more that compensate e.g POS up, POG up, or exploration results.  I'm no expert.

[ryaayr]

Management of this company built their mine ahead of schedule and under budget in this inflationary environment, so what leads you to believe they can't run the mine in the same manner they built it? I am of the opinion that until they stumble and miss their AISC targets (or revise them sharply), they are to be trusted with the projections we have.

[wideopenthrottl]

if it is an industry wide thing like inflation we are still among the lowest (lowest?) aisc...if it is a mexican thing then we are among a large group also affected...our drill results have been nothing but stellar and there are no shortage of veins in the area that should be able to add to the life of the mine...IMHO we have been free from manipulation for this stock up till now...we are well

[E30S14]

SIL has had a nasty run! Just waiting for and wondering when the next buy opportunity will present itself. The share price volatility has certainly benefited traders and I reckon this will continue to be the case going forward. Great company. But buying the dips and selling the run ups has definitely been the way to make money with SIL. Good luck to SIL traders and longs.

[stockpunter]

I'm holding on, not trading.  Too hard for me to time it right.  I'm not saying AISC are definitely going up.  These guys are magic in terms of operations.  But I have read elsewhere that mining is getting more expensive, in general, due to inflation. Below is the statement that leads me to believe they MIGHT report less rosy projections. Is there a better explanation

[wideopenthrottl]

maybe some bets this last run on pm's is not sustainable? we will see!!!...GLTA

[stockpunter]

where are the Hunt Bros when we need them?

[wideopenthrottl]

IIRC...didnt they learn something about supply and demand....pretty hard to corner the supply when huge amounts of paper silver can be created out of thin air...or am i remembering wrong...

[stockpunter]

I have no idea.  I just remember idiots lining up to buy bags of US dimes.  There was another great spike in 2011.  https://www.macrotrends.net/1470/historical-silver-prices-100-year-chart

[tigris72poo]

The AISC will go up for sure.  They have hinted at this because of inflation factosr and dilution.  Nevertheless, the stock will pull back on the actual release even though it will still be one of the lowest cost, most profitable and best managed  producers worldwide.  Still my largest holding.  Any setback will be temporary and give a chance to some who missed the boat to

[wideopenthrottl]

they do have that stockpile that has already been expensed...even though they likely had to mix in some lower grade i think they mentioned separating a lot of it so it shouldnt add too much to the cost of processing it...this next report should really answer a lot of questions...GLTA

[wideopenthrottl]

also my largest holding at almost 60% of my TFSA...

[wideopenthrottl]

you mentioned dilution....how would/what kind of "dilution" would negatively affect AISC?

[tigris72poo]

dilution refers to the grade of ore that goes through the mill compared to the grade in the Feasibility Study and Resource estimates.  The Las Chispas mine has very high grade ore but it is in relatively narrow veins.  So it is possible (even likely) that as the mine ramps up to full production they will find that the most economical way to produce it is to mine wider stopes that contain

[wideopenthrottl]

thanks for that tig...

[wideopenthrottl]

did you remember reading anywhere about how they separating the high grade vien materail from the wasterock when building the underground? i will have to do some more re-reading of reports...GLTA

[wideopenthrottl]

one more question comes to mind....what would we be spending more on, the cost of pulling ore out of the ground or the cost of running it through a mill? as previously mentioned a portion (i will have to recheck how much) of that stockpile has already had the mining costs booked so unless processing the ore is 10 or 20 times the cost our aisc should stay lower until we process that stockpile