OTCPK:CRZNF - Post by User
Comment by
Czicfwillgetermiton Nov 01, 2012 11:17pm
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Post# 20553289
RE: RE: RE: Reality check
RE: RE: RE: Reality check I think a fair market cap would be $250-$350 million with permits and no buy out noise. Financing arrangements may or may not dilute existing shares significantly depending on how the the debt load or potential partnerships are structured.
Hecla currently has a market cap of 1.89 billion and produces 4-5 million oz silver a year. Silver standard resources has a market cap of $1.26 billion with about 8 million oz silver a year. We should produce 2.1 million oz of silver a year with some zinc and lead . Im not factoring in reserves as those companies have more but we will be increasing ours as well soon. There are many ways to value a company but I am basically using annual production of other miners and comparing it to our PFS Production number for a market cap ball park number.
In every scenario I see a sale is the best value for shareholders . If they can boost their reserves i see a sale that can value the whole pie at $450-550 million easy with no significant shareholder dilution. When and if that ever occurs is anyones guess. I do think production limits do hurt the value and number of big players interested but that may be old school thinking as easy silver is getting harder to find.
So basically a 5-10 bagger from these levels in next few months to years seems reasonably doable to me but we shall see .