SST--7.5mm ounces producer in 2008?It occurred to me that I should probably review my assumptions as to how I assembled SST's 7.5mm silver ozs. production for 2008.
First, I took the 1.5mm ounces already in place from the Cozamin and Lundin deals for 2008. (Which may understate the actual; Cozamin's increased production profile will probably raise that figure a bit.)
Then, I assumed that SST will close a third silver stream deal of 3mm ounces, near the end of this year. (SST is no doubt currently talking to companies with all sizes of silver streams, that may or may not come to fruition.) This deal won't contribute hardly anything to 2007 production, but SST will get its full benefit in 2008. So, now we have around 4.5mm ozs. in place, headed into 2008.
Then, I assume three silver stream deals--each of 2mm per year silver stream production--would be added in 2008. (SST has stated they'd like to one a quarter, so THIS may be conservative.) I added in half the total of these new streams (or, an additional 3mm ozs.) to 2008, since SST wouldn't realize the full benefit of those streams until 2009.
Some assumptions are always necessary. I assumed SST would complete three transactions per year, of 2mm ozs. each. If actually do four, that average 2mm ozs., then my figures are low. Or, the deals may average more than 2mm ozs. per year. Either way, my assumptions may be low.
So, anyway... that's how I get to 7.5mm ozs. of silver production for SST, in 2008. What do you all think? This make sense?