Recap: why own Silverstone and what to expectHeavy "stream" of positive news-flow coming for Silverstone
1. Resource estimate for the Copala property. Silverstone is working to get Copala into 43-101 compliance. All of Silverstone's "non-silverstream" properties total perhaps 100 million ounces of historical silver resources. They are working to report compliant resources as the new drilling data becomes available. I believe we are close; this information is long overdue.
2. Capstone - resource upgrade at its Cozamin mine. Silverstone to benefit. As Capstone increases silver resources and/or production, those things accrue to the account of Silverstone. Capstone's increased silver resources will eventually become long-term silver sales to Silverstone, and Capstone's increased production due to their mine expansion is now becoming near-term silver sales to Silverstone.
3. Capstone looking for a merger or acquisition. Silverstone to benefit. We know that Capstone is looking for a good reason to spend its multi-million dollar cash hoard. If and when there is a merger or acquisition, the newly acquired mine(s) will likely be arranged soon thereafter to sell their silver to Silverstone for about $4.00 an ounce. In other words, any mines acquired by Capstone will become sources of future silver stream arrangements with Silverstone.
4. Silverstone to announce revenues for the first time. Silverstone has been making money from purchasing silver from Capstone Mining and Lundin Mining for about $4.00 an ounce, then re-selling that silver at market prices. Silverstone had about 1 million ounces of silver sales in 2007 and estimates 2 million ounces of silver sales in the current year. With higher silver prices, 2008 revenues could be 3 times that of 2007. The imminent news on this will be the beginning of Silverstone becoming an earnings per share story.
5. Silverstone has been working on silver stream acquisitions. The latest debenture deal with Aquiline gives Silverstone the right to convert to a silver stream purchase contract in the future. That contract would be the third one for the company. Admittedly the silver from that deal is at least 2+ years away, but that deal does not preclude Silverstone from finalizing and announcing very soon another silver stream acquisition for which the payoff is either short term or immediate. The next deal should greatly increase the company's creditable resources and signed-up silver purchase arrangements, and nudge the company closer to the silver "big leagues".