RE:ha, what a market. Back to 84:1 silver/gold ratiogoldfinger over at CEO.CA has some interesting technical analysis on the PM world: [url=https://ceo.ca/@goldfinger/precious-metals-near-key-turning-point-part-i]Precious Metals Near Key Turning Point[/url]
Since the beginning of the year both gold and silver have shown some strength. But my sense is that they have not shown an established upward trend. It's been stops and starts.
The investment case for BHS is not, however, the current price of silver or the possibility that that price will increase in future; rather the argument is that BHS is setting up to be a low cost, high margin, producer.
The point of mining is to make money. Buying an asset worth upwards of a hundred million dollars and getting it into profitable production all for an investment less than 10-12 million dollars means that the profits from production go right to the bottom line. No 100 million dollar CAPEX standing between shareholders and dollar one of free cash flow.
Frustrating as it is to have to wait for production it takes this long to actually ensure that the mine will be profitable with $12.00 silver and very profitable with $15 silver; but if silver goes on a run BHS will be super profitable and shareholders will be very happy indeed.