SilverCrest Mines Inc SVLC

RE:Mixed results, upside remains...

[ch08532]

Intersting article..thanks for posting.

A clear takeaway from the aforementioned post:

The story at SilverCrest mines remains the same in my view: The company should produce close to 4.5 million silver equivalent ounces at sub-$15 all-in costs in 2015, leading to strong cash flow, but the company ultimately has the potential to become a 10+ million ounce per year producer with its La Joya and Ermitano projects. I think this strong growth potential makes SilverCrest a takeover target for a larger gold/silver miner looking to deploy cash in this depressed precious metals market. Meanwhile, shares should rebound in 2015 as the company produces more metals at lower costs.

I believe a well suited buyer of SilverCrest would be a mining company with current operations no more than 30 km from La Joya.  Based on 2013 PEA, the initial CapEx to get La Joya up and running is estimated around 141M (starter pit and mill).  If a buyer can leverage their existing nearby infrastructure, equipment and mill operation it would make this project viable at these metal prices.  The CapEx is way to high to get it off the ground any time soon (Silver needs to be mid-high $20's at a minimum) and I have zero interest diluting the stock any more to raise funds to bring this project online.  

We all know Santa Elena is a money maker yet the market isn't giving any value to La Joya.  This project should be the cornerstone of any deal in takeover talks.