TSXV:SLX.P - Post by User
Comment by
mousermanon Mar 01, 2011 3:27am
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Post# 18209997
RE: RE: Silvermex vs Others - A Comparison
RE: RE: Silvermex vs Others - A ComparisonAs i had mentioned in several earlier posts , there are very few silver plays that ARE producing and have in excess of 200 milliion ozs silver in ground , no debt and trading at valuations under 500 million $$ , never mind where SLX is valued now. Fact is that there are not actually very many profitable primary silver producers ( where silver makes up over 50% of the profitable mining revenues). Still the biggest % of silver is produced annually as a byproduct of gold mining, or base metals.
RVM the only other one i could find trading at a lower valuation with more in reserves and resources, however the biggest part of those are at Rock Creek, where development has been delayed by environmentalists. RVM does have the TROY mine which is operating at 4000 tonne per day and is now very profitable.
SVM the other big holding i have in the silvers.
In all 3 you get great management , a good balance sheet and profitable production, altho with SLX that is speculative, since they havent updated us on how the production the past 6 mnths or so has gone at La Guitara.
I am simply looking at the average grades and what the normal costs are for the type of operation has SLX going there.It looks as tho even with the 200 tonne per day operation ( less than max) they would still be profitable , albeit not a great sum.
Now i believe SLX management is taking the right approach in getting some definition drilling done, since it will help immensely in deciding what kind of operation and what kind of tonnage will best suit the resources there. AND this crazy market for juniors love great drill results. IN fact if you had no production, no proven 43-101 and announced a few drill results similar to the grades SLX already has proven at Temascaltpec, YOU would likely get discovery value greater than what they have for their proven. Such is the market.