NYSEAM:SVLC - Post by User
Post by
thereaderon Jan 11, 2011 3:11pm
688 Views
Post# 17955479
SVL, TMM, and OCO
SVL, TMM, and OCOSince posting the following on Oroco's (OCO:TSC-V) board I've been getting sufficient interest from SVL and TMM shareholders to post it where more of you will see it....
Oroco is developing an open pit, heap leach gold and silver mine in Sonora, very close to both Timmins and Silvercrest's mines, at the location of a former producing gold mine (100 years ago, high grade gold and silver veins). Oroco just announced a PEA which demonstrates a 7 month payback on capital costs and a healthy NPV. The stock has been steadily rising since October and I posted the following on OCO's board in response to a question asking why....
"IMHO, it's because the market started anticipating a positive PEA from Oroco on Cerro
Prieto in October, was proven correct in December when the news came out, and is
still discounting it into the share price, AND, the market is anticipating quick completion
of the other milestones leading to production.
In addition to the PEA announcement, several more catalysts should cause additional
upward rating of Oroco's shares. Every step towards production should increase the
share price towards the NPV/share, which today is about $1.60. Financing of mine
construction, permitting, engaging a contractor, etc. should all be reason for
further rises up to the NPV/share level.
In this market I'd expect financing to happen pretty quickly and be on very good terms,
and as they already have a relationship with the contractor who built Silvercrest's nearby
mine (in under a year) I'd expect the rest of the milestones to happen quickly too. Any
doubts about what happens to the share price of a junior as it approaches production?
Check charts for SVL and TMM; their shares rose steadily in the 12-16 months leading
up to production. I think OCO started that rise in October and it should continue
for some time."