SAM''s Income and Future IncomeStarcore gets spot price for half its yearly production of gold (half is 16,500 ounces) and has hedged the other half of gold production for, I estimate, between $725 and $750 per ounce.
They get spot prices on their entire silver production (around 350,000 ounces).
The company wants to boost production to 58,000 from 40,000 of gold equivalent and lower the operating cost to $230 an ounce. And at that point the company will get spot price on their entire production, no more hedge.
The Cerro De Dolores property could produce over 1.2 million ounces of silver per year, and has abundant zinc and lead (by the time they tap this, who knows where zinc and lead prices will be). Hopefully the company will commence drilling soon to get up the resources and start production in the next 3 years.
I personally hope the company holds off on any acquisitions until they pay off their debt completely and have some cash in the bank. Last thing I want is financing or dilution. I hope they work with what they have for two years, and then begin looking around for other assets.