Heavy "stream" of positive news-flow comingHeavy "stream" of positive news-flow coming for Silverstone (TSX:SST)
Here is a list of all of the news that we can expect to come from (or about) Silverstone. This is what I came up with. I hope to be pleasantly surprised with other news I didn't think of.
1. The deal with Lundin Mining is done, and the news thereof is imminent. Shareholders and analysts no longer have to worry the deal has fallen apart.
2. Improvement in the information available about the Lundin deal. Lundin has had to improve the confirmation of its resources, and this is at least part of the reason for the delay in closing the deal. It should become apparent that the deal with Lundin includes more silver resources - more value - than originally reported.
3. Resource estimate for Copala. Silverstone is working to get its Copala property into 43-101 compliance. All of Silverstone's "non-silverstream" properties total over 100 million ounces of historical silver resources. They are working to report compliant resources as the data becomes available. I believe we are close; this information is long overdue.
4. Capstone - resource upgrade at Cozamin. Silverstone to benefit. As Capstone increases silver resources and/or production, those things accrue to the account of Silverstone. Capstone's increased silver resources will become long-term silver sales to Silverstone, and Capstone's increased production due to their mine expansion is becoming near-term silver sales to Silverstone. Perhaps the silver sales will surpass the 1 million ounce per year rate we have been led to expect.
5. Silverstone to announce revenues. Silverstone has been making money from purchasing silver from Capstone for $4.00 an ounce, then re-selling that silver at market prices. The next news on this will be the beginning of Silverstone becoming an earnings per share story.
6. Capstone looking for a merger or acquisition. Silverstone to benefit. We know that Capstone is looking for a good reason to spend its perhaps $60 million cash hoard. If and when there is a merger or acquisition, the newly acquired mine(s) will likely be arranged to sell their silver to Silverstone for $3.90 or $4.00 an ounce. In other words, any mines acquired by Capstone will become sources of future silver stream arrangements with Silverstone.
7. Silverstone to be able to focus on silver stream deal #3. Now that silver stream deal #2 (with Lundin Mining) is all finished, the company can now focus its energies on deal #3. This next deal should greatly increase the company's resources and expected silver sales, and vault the company into the silver "big leagues". I expect the stock price to react accordingly.