Bear Creek Mining Corp V.BCM

What a day...

[JohnnyBurnette]

On a day where silver lost 1.7% in value, zinc and lead were both up 0.7%.  Given where the value is in the Corani project, that's about a wash.

But BCM drops almost 12% on the day.

It's as if potential investors don't know what's in the field.  The 2019 feasibility study projected a 22.9% IRR and that based on metal prices of $18/oz silver, $0.95/lb lead, and $1.10/lb zinc.  Not for nothing current values of these metals are $27.5/oz silver (153% of base assumption), $0.97/lb lead (102% of assumed value) and $1.31/lb zinc (119% of assumed value)

If you've ever believed in the Corani project, you'd have to say they are better positioned than any time post the loss of the Santa Ana mine.  It's hard to find anyone who believes silver will ever fall below $20/oz ever again, at that level the silver stream pays for the entire development. No clue where the negative price movement is coming from.

[materialsgirl]

A good post Johnny. The concern is when and if a mine ever goes ahead. How to do the financing? That is the question. If you look at history you will anticipate that silver  will drop below $20 in the future.  Gold will drop  down to $1,200 at some point. The timing may be 5 or 6 years away but there is  certain to be volatility.  Sadly. mat

[JohnnyBurnette]

What you say is in the realm of possibility, but my point was the status and potential of the mine at this moment in time, at least to my point of view, has never been better. True, not everyone believes silver has put $20 per ounce behind it, but I certainly do.  So does pretty much everyone investing in silver mining stocks.  Point of my post was "why are previously interested

[likeike]

well said JB and I have to say the only thing keeping people a little gun shy is knowing how the Peruvian govenment handled them on their last big project. I do think things will turn  around for them quick enough once the commodity index gets rallying in earnest. IHMO  however I believe they do need some better promotion. IKE

[JohnnyBurnette]

I think at this point they are looking to be purchased by a major.  Not sure there needs much promotion for that, except to have rock solid local support.  Which explains spending front loaded money on infrastructure and community projects. I think they've got a realistic, solid plan in place.  I bought more shares on the recent dip, I'll buy more if it goes down again.

[rob1237]

BCM finally coming alive.  

[rob1237]

Buying more in the low $2.15  range. Not sure how u can  to wrong at these prices. Average target $5.50

[materialsgirl]

The targets all assume that the mine will be taken out by  a bigger player.   This may not happen It is doubtful that they can self finance. Treat the target as a sort of acedemic calculaion of the theoretical NAV at some specific silver price. it is a great property. Yet nobody has bid for it over the past  decade.  Why?   I have no idea mat

[rob1237]

Good point, i guess i will trade it then. 

[rob1237]

I believe the elections in Peru will be this weekend. Looks like the moderates will get in. There will be a re rating after the election.  this is a good example of country risk. But im confident in the election as the moderates are in the lead in 3 pools. 

[Beverk]

What exactly is the issue for mining companies regarding the elections?