RE: Getting highly valuedJust working from the known unknowns, like what kind of production they will be running, I would say that there is more upside yet for SPM. For example, once they get to 2000 tpd, running ore with about 4% zinc, plus lead and copper credits, and about 7 oz/t silver, the company will be generating signficant cash flow. Too early to say what the recovery rates will be, but I am betting since they are installing a new plant from the ground up, it will be designed to run optimum processing for the metalurgy of the ore. The market is forward looking, so even if it takes until the second half of '07 to get up to full production capacity, the stock will eventually discount in the expected cash flow.
However, turning to the unknown unknowns, I would speculate that with about $20 million sitting in the bank, plus the cash that will roll in as options and warrants are exercised, they have plans to put that money to work with the acquisition of a producing asset. And then all of the forward cash flow multiples I discussed above will be out the window and an entirely new target will come into play.
The bottom line for me is that I think the stock is getting overbought on the current run, but I also think there is plenty of upside potential yet to come.
cheers!
COACH247
PS: Personal disclosure - SPM is a sponsor of my website, and I own stock and warrants. I do not have a direct promotional relationship with the company.