RE: Silverstone being groomed "Silver Wheaton #2"Brad,
It isn't free but the payback period is minimal. Secondly, that silver is worth so much more to SST's market cap than it is to CS's market cap. Third, Endeavour Silver had I believe just 1.65M ounces of production last year and their market cap is $234M. Silverstone has a market cap of $44M. Making a relative comparison, all things being equal, would suggest a market cap of $170M for Silverstone or 3.8 x its current stock price. This is *not* a perfect comparison but it gives an idea of the scope of what Silverstone is trying to achieve here.
And please, we need to give management the benefit of the doubt that they have bigger plans in mind for Silverstone than just 1.2 million ounces of silver production per year. It is a great start in its own right but it isn't all there is to Silverstone's future. As Silverstone buys more production its scale of production will hit critical mass, its market cap will jump up commensurate with the intermediate cap producers ($250M+/-), and the genius of this CS-SST deal will become self-evident.
tooclassy
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classy, lets not get too excited and forget the fact that they just spent $20 mil for the 1.2 mil oz/s this year!!
It wasn't free. Lets assume they can average a spot payment of $15/US/oz, then they loose money this yr. Although, years 2-10 should be super sweet assuming the spot price continues to increase.
Brad