RE:RE:RE:RE:RE:Shareholders LetterThe valuation of SIL is a bit of a head scratcher but the market is pretty good at correcting the mistakes it makes, both up and down, so who knows. AG's market cap is much higher even though the share price might be similiar.
SIL's current reserves are only slightly higher than 100 Million Oz.'s and they haven't produced a single Oz. yet, I don't think.
They are building a mill with capacity of 1250 TPD and have raised huge money to do it.
We have a mill capable of turning 500 TPD and our costs will be significantly lower and can be spread over 5 years I think, so we don't need to issue a ton of stock to start generating cash flow. Once we have even a minimal resource outlined, enough to justify our executing the remaining part of the option, the stock should be re-rated much higher. Then once we announce a production decision another re-rating will occur. We may not get to $ 1.9 Billion in the near term but the path to increasing shareholder value is very clear and attainable. As long as mother nature does her part we'll do very well and so far she's doing just fine.
We have a lot of good stuff to look forward too.
Marcsr wrote: Goawaigh,
SIL appears well overvalued, especially to AG similar price, but fully established miner.
VIZSLA has potential upside, but like you said it will require reserves posted with additional high grade viens. This should be very doable, but not the 12M in production in the near future.
The existing mill is not even close to being adequate for that proposed production, so an entire new mill would have to be constructed, probably costing in excess of 100M, extending the time for production to begin.
Also, the spin out for the copper mine, may not increase shareholder value, as current market conditions for manufacturing is depressed worldwide, and will remain so due to covidscam lockdowns.
Marc