Let''s Do the Math once more:6 Months ago .......
Mid July 2007 - Silver Price $ 12.00 Stock Price - $5.00
4 million ounces at $6.50 cost/per silver ounce -
$5.50 profit per ounce * 4 million ounces
22 million profit
Earnings: 32 cents a share per year about
Today:
February 2008 - Silver Price $ 17.50 Stock Price - $4.40
4.5 million ounces - $7.00 Cost (Add .50 to be generous)
10.50 profit per ounce * 4.5 million
47.50 million profit
Forward earnings per year: approximately 70 cents a share
Production has increased by nearly 1/2 million ounces
Reserves have increased by 10 %
More than double earnings expected.
Actually costs is declining as production is increased.
So why in the world is this stock and every other mid tier gold silver down in the gutter ?
There is only one explanation - robbery by the people that do not want a flight out of paper assets into hard asset stocks.