RE:RE:The risk I see in this stock gan, I think you missed my point. USAS had a good story over the last year with the increasing price of zinc. That brought in buyers who may now be looking to sell. I do not think the upcoming earnings will be good enough to bring in enough new buyers to absorb the stock that will be sold as the previous buyers lose patience.
This is my honest opinion of the situation. I am often right in my assessments. In fact, I have been right about this stock since I sold near the peak. I do not view owning stocks as a cheerleading contest. My goal is to be right so that I make as much money as possible.
As for Caledonia CMCL, its recent peak was $9.90 on Apr 24. It now trades at $8.73, down 12%. The peak for USAS was Sep 7 at $4.90. It now trades at $3.22, down 34%. Over the last year, CMCL is up 40% while USAS is up 13%.
I appreciate that USAS can increase silver output if the price of silver increases; however, given the sluggish pace of increasing San Rafael zinc production, I tend to think it would take at least a year to change the production mix significantly.
USAS only produces about 1.8M ounces of actual silver per year. Their goal is 7.6M silver equivalent ounces. That calculates to only 24% of their revenue coming from actual silver.
Do you think my Q2 estimate of $.04 to $.07 is wrong? If so, what is your estimate? Feel free to include lower capital expenses into your numbers.
Lastly, I never give much credibility to drill results. Mining companies report great drill results all the time, but more often than not, those results never translate into good profits.
If Q2 results are awesome and the stock rockets up, I will happily admit I was wrong. However, I hope you will give me some credit if the stock price continues to languish after Q2 earnings.