Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Silver Valley Metals Corp V.SILV

Alternate Symbol(s):  SVMFF

Silver Valley Metals Corp. is a Canadian exploration company. The Company is focused on the advancement of strategic and precious mineral properties. The Company owns a 100% interest in a lithium and potassium bearing salar complex comprising 4,056 hectares on three mineral concessions (the Mexico-Canada Project or Mexi-Can Project) located on the Central Mexican Plateau in the states of Zacatecas, and San Luis Potosi, Mexico. The mineral concessions include La Salada, Santa Clara and Caliguey. Its La Salada concession is located approximately 80 km north-northwest of Zacatecas city, adjacent to the town of La Salada. Its Santa Clara concession is located 70 km northeast of Zacatecas city, 8 km north-northwest of the town of Illescas. Its Caliguey is located 60 km northeast of Zacatecas city, 10 km east of the town of Villa de Cos.


TSXV:SILV - Post by User

Bullboard Posts
Comment by micromikeon Jan 27, 2012 8:01pm
222 Views
Post# 19460127

RE: Share prices

RE: Share prices

In theory BTC is a junior mining company but over time they have added major shares of other companies. They don't trade like a junior but like a holding company. Once they do the split you will have two companies for the price of one. In theroy the price of BTC should be Coro's holdings (58.86 Mil shares) divivded by BTC outstanding shares (76.27 mil) times Coro's current share price minus a few cents plus a few cents for Goodchild  property. If say today we had the split then numbers should work out like this 57.86/76.27*.43= 33 cents then take a few cents away for a holding company and then add a few cents for the Goodchild property and we come up with 33 cents. That's the theroy but the market doesn't trade on theory so who knows what the price will be. The point I'm trying to make is that BTC should trade in direct relationship to Coro's share value unless they hit it big time at Goodchild then the share price will break out of this relationship.

 

The new company will hold everything else so using todays prices we get 45 cents - 33 cents (BTC) = 12 cents for the new Company. 12 cents seems a bit low but the market will determine what valuation the new company should be. Since I'm kind of biased, I would expect a higher valuation for the new company and this is why management wanted to do the split. I would hope we could get 20 cents but who knows.

 

So now we are into your question. BTC will trade in direct relationship to Coro's share price as per the theory above which is just theory. Coro's has San Jorge and this could be a big driver for BTC if they can resolve this. Plus they have the Chile stuff which is very mining friendly. Chacay is right down the road from Tech. This project is moving along nicely. Last year Coro trade at a high of $1.62. This year if they can get the San Jorge project back on track then there is no doubt in my mind that we could hit the high again plus add Chacay we could easily hit 2 bucks but that is JMHO. So the major issue here is to resolve San Jorge and get it back on track.  So just for kicks say Coro traded at $1.5 * 57.86/76.27 = $1.14 plus you have shares in the new company.

 

Now we have to take a look at the new company. It will trade on how the exploration goes. If they hit anything significant then major up side. So just using no upside and Coro getting San Jorge back on track, you have .12 + 1.14 = $1.26. So this is an easy  double.

 

The bottom line is that you've got lots a variable to make a double so sit back and watch things unfold this year. Last Year I said the exact same thing and we got blind sided in the fall so you just never know, there is no sure thing in the mining game. Just take a look a SLI.V, what a disaster. I can tell you one think for sure is that BTC management is one of the best in the junior mining game but that is JMHO.

 

MM

 

Bullboard Posts