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Silvercorp Metals Inc. T.SVM

Alternate Symbol(s):  SVM

Silvercorp is a Canadian mining company producing silver, gold, lead, and zinc with a long history of profitability and growth potential. The Company’s strategy is to create shareholder value by 1) focusing on generating free cashflow from long life mines; 2) organic growth through extensive drilling for discovery; 3) equity investments in potential world class opportunities; 4) ongoing merger and acquisition efforts to unlock value; and 5) long term commitment to responsible mining and ESG.


TSX:SVM - Post by User

Bullboard Posts
Comment by maxncompanyon Jan 06, 2006 1:22pm
208 Views
Post# 10129656

RE: Anyone strong in math out there.....

RE: Anyone strong in math out there.....Well, it's not the reserves to be figured, but the number of ozs. produced per year. I'm not sure if they've revised projections, but if we go with the old figure of initially producing at 4 million ozs. per year (silver, not silver equivalent), each $1 (US) rise in POS will be an additional $4 million (US). I would note that at the current POS of $9.00, SVM is already $10 million (US) ahead of their projected revenue (SVM based projections on $6.50 silver). That is, $2.50 X 4 million ozs = $10 million US............Now, back to a $1.00 rise in POS. That's $4 million US divided by fully diluted 48 million shares (somewhere around there) and that is an additional $0.083 earnings per share. Now, they figure to increase silver production from 4 million ozs. to 8 million ozs., so you would double it at that point to a $0.166 increase in earnings per share for each $1 rise in POS. And then there's that matter of the lead and the red hot zinc to always keep in mind. Zinc, currently is nearly double the price SVM used in their projections.
Bullboard Posts