Long term investor with few questionsRecently purchased some USA and intend to make it a long term holding. A few questions for the old timers/experts with this stock:
1. What is the maximum production that can hit if they can get enough feed to the mills and mills are at full capacity--assuming average grade? It seems like it should be more than 3 million. at 1400 tons a day and 10-20 oz per ton silver, what is stopping them getting 1400*(300 to 365 days) * 10-20 oz--let says 1400 *330 *15 = @ 7 million oz.
Infrastructure, equipment, expertise, availability of enough feed at one time? Do they think they can ever get up to this level? In what time frame?
2. They have a 3rd mill and mine--what is the cost to get it going? And what is it's production capacity.
3. what are reasonable expectations on how low they can get cash cost per oz--assuming lead and copper credits stay the same?
Any insights that can be given on these questions would be appreciated--trying to get a better feel for long term possibilities (other than silver going through the roof-which I think is just a matter of time).
Thanks in advance.
P.S. I have never seen warrants priced at darn near the stock price before on a stock. Holders of the warrants must believe pretty strongly in the picture or there would not be as much time premium built into the warrants. The stock at only about 10% higher price seems the better play--just my opinion. Others may want the leverage and willing to pay a premium for it.