SilverCrest Mines Inc SVLC

RE:RE:Free Cash Flow

[scott]

I’d like to clarify comments in my previous post when I mentioned the significance of Silvercrest announcing publicly that they are going to have free cash flow from operations.  To me this is a major game changer for the company and I’ll try to explain why I believe that to be so.  As georgoub mentioned, the sentiment in the mining space is much different today compared to the 2010 time period.  I’ve been closely following and investing in the mining industry since the early 1990’s and I can’t recall the mood ever being as somber as it is today.  So I do recognize the difference between today and the 2010 period when First Majestic experienced an amazing run in their stock price and valuation.  With that said, other well-run companies in the space saw only moderate appreciation during 2010, very few experienced anything like what happened with First Majestic.  Sentiment aside, something set them apart from all the others.  Something changed in regards to the dynamics of the company and the way they were perceived by the market place.  While there are obviously many variables involved, what follows is my opinion on what the main catalyst was that sent First Majestic soaring during this time.
 
The most fundamental change that I think impacted First Majestic was its public announcement that they had the ability to finance all of their future projects internally.  What’s the BIG deal?  That meant no more games by the investment banks that looked to broker deals to finance future projects for First Majestic.  As an acquaintance of mine put it, “they basically realized that their services would no longer be needed, so they exited the game, a game that most likely involved numerous stock-price-suppression tactics on their parts”.
 
Realizing that the “financing” gig/game was up, my guess is that other institutional investors felt more apt to invest in First Majestic as a result, along with the fact that they saw the company in a much stronger position.
 
This is what I think empowered investors back in 2010 to invest in First Majestic and what I think will also happen now to Silvercrest Mines for the remainder of 2014.  Do I expect similar gains in the stock price?  I have no idea, there are so many variables that could impact future gains, I’d be crazy to try and predict the future.  The point I’m trying to make is that all things considered, the dynamics for Silvercrest have now changed and in my opinion, the company will stand out significantly against the others in its peer group for the foreseeable future.
 
Best of Luck!!!
 
Scott