Searchlight Innovations Inc T.SLX

RE: RE: silvermex was naked

[ripantuck]

Sunwood,Just so I understand, is it true that the old 800 ton per day mill (that will hopefully be rebuilt) is pure Rosario and has nothing to do with San Marcial. In their presentation they lump the two together. To me this is important because they are already at capacity at La Guitarra and it is producing less than 7 cents per share in annualized gross revenue at second quarter 2011 metals prices, or approx. .8 cents per share in annualized cash flow. I don't see anything in their presentation about expanding this capacity, although they do speak generically of long term growth at La Guitarra.My point is that La Guitarra, while profitable and growing does not appear large enough to have much of an effect on the SP even if they double production every few years. In other words, increasing Cash Flow from an annualized .8 cents per year to an annualized 1.6 cents per year in 2 to 3 years isn't likely to help the SP. Of course the 1.6 cents assumes no further dilution.On the other hand, if they do continue to grow production at La Guitarra and add an 800 ton per day mill at Rosario within the next year or so, that might help SP a lot more. However, I must admit that I don't really know what their growth plans are for La Guitarra. For example, do they have to build a new mill in order to exceed their present capacity (280 tons per day), or can they incrementally increase the capacity? What are the capital costs involved with either building a new mill or increasing the capacity incrementally?The good is that they are producing at a profit. The problem is that they have a long way to go before the per share profit justifies a significant portion of the present SP.