after a good night sleepYesterday I was red with anger about this play.
After a good night sleep I have considered the options.
I'm thinking we'll have a very choppy and uncomfortable time over the next month or so...until there is some clarity on the situation with the US and Europe. Something has to give. You can't print money contiuously (but the US does and baffles me how this doesn't cause a run on my phyz silver but that is another topic) and continue this charade.
I'm thinking that there are two scenarios:
1. TK drills finds nothing and is left with 20-30 million in silver to be sold to anyone who will take it. I'm guessing that at current silver prices and the fact that you could mine it with a bazooka, that TK would still be able to get .35 a share for the find...and that is UBER conservative.....50-60 I think would be more realistic considering the leaching speed and cost to get this silver out of the ground.
MORE REALISTIC would be my second consideration:
2. TK is trading very low coming off an announcement of a sheety PP where insiders get a golden deal thus the price drops to the financing level as is very common with spec plays. TK drills the mountain. TK finds some silver...could be lot's or little but nonetheless I'd say 50-100 million oz is very possible. The US and Europe continue to trend downwards with their paper money becoming more and more diluted the PRICE OF SILVER makes a move towards 50oz by year end. TK announces drill results in the late summer early fall. Silver is approaching all time highs...the craap in Peru is forgotten as life goes back to crooked normal in Peru...and TK's valuation rises with those factors in mind.
I've always maintained that TK is worth at least .85 cents based on $35 silver. At some point if silver continues to rise in value that number has to grow, especially if they find any extra oz's in that much larger area they are drilling right now.
Point is...although I'm VERY frustrated, I've let the emotion pass and will let these rough waters settle before I do anything rash. I think we are very near bottom and I'm expecting good things once the drills yeild some results.
All the best,
Atheena