ProgressThe market wants earnings.
This is a piece of work and management is approaching it correctly. Achieving this year’s goal while developing next year’s plan is the best approach!
CEO Duane Nelson estimates the 320 tpd operation should produce approximately 1,000,000 silver equivalent ounces on an annualized basis at a cash-cost of approximately $7.50 per ounce by fourth quarter.
In 2010, Great Panther produced 1,535,000 silver equivalent ounces with a comparable cash cost per Silver ounce of $7.43.
The reserve Silver Equivalent Ounce Estimate for GPR is only 47.41 M oz while SLX already brags of 230.97 M oz.
SLX Market Capitalization: $82,710,000
GPR Market Capitalization: $496,440,000
Both companies have a very large Silver resource. Silvermex has lots of NI 43-101 proven, Great Panther does not. It should be clear that earnings combined with potential reserves is what the market rewards. As Silvermex works to increase production to the full capacity of its mill, I hope it plans to also increase its mill capacity. Exploration efforts should be limited to and focused on the immediate needs of production until earnings can fund both production upgrades and increased exploration.
I use Great Panther for comparison because it is a continuing success story.
The market’s response to today’s progress report is disappointing. Some have jumped ship because they found it won’t happen overnight. It’s a piece of work and it will take time. I expect to see new highs very soon as management is adding value.
*
mineshack
*
*