RE:RE:RE:RE:RE:Financials out @mferguson71.
I own quite a few silver producers. I don't own any exploration plays just because of the very high risk. I would rather own something which has producing mines and is able to take advantage of higher prices. However, returns in exploration can be tremendous but so is the risk.
I own FVI, EDR, FR, SCZ, IPT, EXN and AUN in this space. Mostly producing except AUN which is a development play.
I also own MTA which is a royalty company with most of the revenue from silver currently.
this is a massive pullback. I expected one but not with this vigour. Definitely washout the oversold conditions. If you look at the gold 5-10 year chart it is making a cup and handle formation. This is one of the strongest technical formations and given the base of gold chart is 6-7 years, once this correction is done I expect gold to go up several hundred dollars above the recent high of 2070. Probably 2400-2500 min. This means a good chance that silver goes to all time highs if not higher.
while this correction is painful and I am fully invested with decent profits which I don't want to lose, I think there is more upside coming by year end. I hope I am right...
why did you sell EXN? It's a good buy at these prices. Barely moved up if you see 5 year chart. It's closer to lows than highs. I think relatively it's cheap.
scz is cheap too. I sold some at 25 and then some at 38.5 cents (25% holding each time). My initial sell was too early but only because I had held this since 2016 and saw my investment go down by 70% at one point. Also, they had not bought Zimapan mine which was on lease and I didn't know whether they would be able to buy. They owe 20 million on it still but I think at these prices they will make a killing on a mine which produces 500k oz of silver min every quarter (probably higher production). So this company can now probably produce roughly 3 million ounces which would make it a considerable producer. Probably not even a junior anymore per say but the mkt cap is quite low. Even considering they raise 20 million which would dilute a lot the mkt cap would still be 80 million. Other producers with much less production are trading at 120-150 million mkt cap. So this could easily go to 40 cents on a conservative side. May be 50 and beyond if prices stay here and they can close the Zimapan acquisition.