RE: RE: RE: Has anyone calculated Cash Flow:
I don't think we have to worry too much about the burn rate anymore, at least for quite a while. It looks as though the cash being generated from La Guitarra operations will be enough to finance all their planned drilling, and that's not just at La Guitarra. We are not going to see that confirmed, of course, until the next financial statement is published, but I'm betting the confirmation will be there
Drill Results:
Although it's disappointing that the latest news didn't boost the Silvermex price, I've learned from knowledgeable friends in the industry that it's Cash Flow by which junior producers are measured. It's cash flow that is the key price-determinant. For explorers, it's drill results, but once you're a producer you have to show you can produce cash. Everything else is secondary to that!
NAV is also important, which in turn depends upon resources (and therefore on successful drilling), but it's real cash flowing into the till today that has the most impact. "Show me the moolah!"
So, if I'm right, we'll get an immediate price boost upon publication of the next Financial Statement. Maybe not a giant step forward, but a step forward nonetheless. The main thing holding back an earlier breakeven was probably the cyanide shortage, which cramped production and thus production.
My guess is, rather than expanding the present mill capacity right now, they'll keep the present mill going at full capacity while they spend a good bit of money on more drilling at La Guitarra, plus drilling at their other prospects. With La Guitarra producing profitably I think they will probably pay greater attention to getting Rosario up and running. (We haven't heard a lot about that mine, while the Company concentrated on a Guitarra.)
As far as inside-selling is concerned, relatively small amounts, such as we have seen recently, are not too significant when you consider the top guys will probably vote themselves a few more options as some good, price-moving news hits the news wires.
"Let us pray!"
Sunwood