10 oz. per tonI thought of that too. However, that "junk ore" is a good thing to have around when silver goes up. Mine out the good stuff 1st and then go mine out the "junk" once silver goes up--they don't have to do any work at that point to increase resources.
Most silver companies would be thrilled with that "junk ore". Of course, their costs aren't that high.
What I find interesting about US's results are they mainly are mining their 10 oz ore now. Once they get to mining their 20 oz. more (check out their resources--2 main chunks-the larger one averageing 20 oz. per ton and another one averaging 10 oz. --their average output for past year or so has been 10-11 oz) their costs should really go down per oz. and their production should sky rocket.
My projections (which don't mean anything) has their production profile as follows:
2010-3 million
2011-4 million
2012-5 million
2013-6 million
2014-7 milion
2015 -8 million.
They should be able to get to this without adding milling capacity. Add some production capacity and it can be higher.
Just random thoughts (or wishful thinking from a long).
For my bs, if silver increases at 20% a year which it has been since early 2000's, 45 silver in 2015 and in the 70's bull market, it went parabolic which means this may be low (of course, could be to high--but it is possible).
8 million * 35 profit (probably more with lower costs) and 10-30 multiple = 10-30 per share.
Of course, we have to be past a quarter a share first (LOL) and not have silver crater where they go bankrupt. Risk and opportunity often go hand in hand.
Enough rambling bs for the day. Have a great day everyone. Maybe we will close above 20 cents for the week.