RE: How UnderValued is SilverCrest so I'll repost:
On a P/NAV valuation SVL is barely 50% of what its share price should be.
On its CashFlow its share price is just 33% of what it should be. And I won't bother adding in the fact that Production is set to Double by 2014. My main concern is SilverCrest is a sitting duck here. Who would bother to Explore when they could takeover SVL at a fraction of its Value, and get two other mines still in development?
SilverCrest ‘undervalued' analyst says after strong quarterly
It looks like SilverCrest won't be forced to tap markets to fund development and exploration, as cash costs drop and profits stay strong.
Posted: Friday , 17 Aug 2012
HALIFAX, NS (MINEWEB) -
As cash continued to roll in on strong production from its Santa Elena silver-gold mine in Mexico, Canaccord analyst Nicholas Campbell reckoned SilverCrest Mines (TSX-V: SVL) won't have to do an equity finance as it pushes ahead with a mine expansion. In a Canaccord overview of SilverCrest's latest quarter in its inhouse publication Morning Coffee Campbell is said to believe SilverCrest shares are undervalued, trading at about half the average valuation its producing peers are getting.
(Or as Canaccord put it: SilverCrest goes for "0.33x P/NAV (5%, spot) and 2.4x 2013E CFPS, compared to the junior producer average of 0.68x P/NAV (5%, spot) and7.3x 2013E CFPS.")
Makes SilverCrest Valued at a tad under 1/3 of what its share price should be using a PEER Group Valuation on CashFlow
Sector =7.3x 2013E CFPS
SilverCrest = 2.4x 2013E CFPS
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and add a reminder that Sandstorm Gold will pay 20% of Underground build...and
SilverCrest Mines Q2
15th Aug 2012
In the second quarter, the silver miner's working capital rose 64 per cent to $29.6 million, and its cash position stood at $34.9 million at the end of the period.