RE: SST--7.5mm ounces producer in 2008?Thanks for your reply, jims101. I have a couple thoughts on your response...
First, I'm not really concerned over how much SST is going up versus SLW in the course of a single day, week, or month. I was thinking longer term than that--over years. (I'm not a market timer.)
Second, SST has stated that they'd like to purchase additional streams at the rate of once a quarter. So, I assumed one more this year (beyond the Lundin deal), and thought I was being conservative in saying they'd have reach agreements on just three more, next year.
If 3 million ounces for the next deal isn't the right number, then pick 2 million. Then, if we assume that each succeeding deal is also 2mm ozs., we'll have around 6.5mm ounces of production next year if they do three more deals in 2008. I think it'll be more than that.
As to what price SST'll have to pay... I guess we'll find out. I believe both the Capstone and Lundin deals were done earlier this year with silver around $13, so I don't see why they can't continue to use the $4 figure.
More deals are not only necessary, they are desirable! And I think that in the long run, silver will dramatically outperform the stock market in general, all base metals, and, yes, even gold itself. But that is a separate and undoubtedly lengthy discussion! {:- ) In that respect, I am also taking a long-term view, and believe SST will ride that wave.
Thx!