A Footnote To Any Potential Silver Streaming Option It's easy to take pot shots at Mr. Renaud Hinse because he so readily sets himself up as a target.
But I do remember Mr. Hinse mentioning, at the zoom meeting which Dany seems to have posted on the internet, that if the silver price reached $35 US/ounce, he would most certainly consider starting up the Barvue mine in an immediate action.
In fairness, Mr. Hinse may have already considered a partial silver stream as a potential source of start up capital for the Barvue mine. Remember that even though the Barvue mine still contains a vast resource of zinc, the low grades there may not justify the exploitation of that portion of the resource at today's zinc prices. Zinc certainly does not have anywhere near the value of silver.
Perhaps, it would also not be profitable for the company to sell any portion of a silver stream of the Barvue resource at today's lower silver prices. There still remains some uncertainty about where the gold and silver price will move in the next couple of years.
Undoubtably, at $35 US silver, a better silver stream price could be negotiated. A smaller quantity of silver could be streamed for the same amount of upfront capital.
By the same token, it would be much easier to obtain bank financing at $35 US/ounce silver.
In either case, the financing situation would be better for the company and its shareholders to accept. Maximizing profits is the most important issue. No one could disagree with that?
Is it worth the wait until then and take a chance that precious metal prices will eventually rise?
Perhaps it is, since governments continue to spend, like the money, never needs to be repaid.
Gold and silver, do tend to run, by price, in an inverse relationship with the American dollar. But this is an equation that does not take into account the inflationary effects of excessive monetary easing in the overall economy.
Today, central bankers and government leaders are trying to calm present day fears about run away inflation by insisting that such moves today are merely transitory events.
But where will this inflationary trajectory take us if government can't resist the temptation to spend so very much more?
Today all governing world bodies seem want to appeal to the common masses in the best way possible. Some of these naive leaders also believe that it is solely the fault of the most rich that some of the poor have so very little!
What about those who deliberately choose not to work? Why should the rest of us pay for them? No one likes to pay taxes. But not every poor person is handicapped either!
Socialism seems to be again one of the best ways to obtain votes for their democratic re-election.
And for autocrats, the renewed applause continues to stroke their personal egos as their undemocratic assemblies continually meet. It becomes a boisterous exuberant party for all concerned. Happier times are here again!
There is no better known substitute for the stroking a politician's ego than public applause. Only corruption is a better influencer of a politician's actions. But not every political leader or player may be convinced that they won't get caught.
Honesty, in all matters, sometimes prevails, but not very often.
Often grandiose pension schemes are reward enough! Most of us don't get that. Are their over generous pensions a form of graft?
Are these players stealing from the public purse and getting more than they justly deserve?
Many taxpayers might choose to think so! But we do choose to vote them back in. What other option do we have to help protect our personal wealth and future financial situation?
One back up policy is to take out some form of insurance against the possibility that this time the politicians may actually be proven wrong again!
Buying a precious metal miner like Abcourt Mines does provide such an option.
The main point is that political leaders need to come to understand once again, as others in the past have also realized, is that easy credit with low interest rates lent out to consumers, on a long term basis, only encourages the populace to spend more than it can afford, or to lose, in wildly overpriced or outlandish types of investment schemes.
And sometimes the fear of higher interest rates may be beneficial in helping control an absurd tendency towards excessive expenditure. Why should everyone be encouraged to become like one of the political elite?
We shareholders at Abcourt Mines are but small bit players in a much larger scheme of things. But sometimes the small, given a greater opportunity, may yet have a lot to gain!
If our cards do play out, in the longer term, we will do well!
To be fair, politicians sometimes may sometimes see a vision of the light. But more often than not, they will refuse to change. They frequently make the same mistakes.
It is the nature of a politician to appeal to the greed of the masses by doling huge financial largess to the populace and as quickly as they can.
Today, we can see this same mistake play out in the best way possible.
One may choose to keep on voting for these imbiciles! Why? Because everyone else appears to
be doing just the same. And everyone wants to be on the winning side!
For little Abcourt Mines, it bodes well for the future!
Perhaps, now may also be the time, for Abcourt Mines to scoop up another nearby copper mine?
Undeveloped copper deposits may soon become extremely valuable
And much too expensive to buy on the cheap!
Let's all hope for $35 US/ounce silver
Gold will follow, it's sure to come!
And as today's politicians lead the charge, with respect to copper pricing, the skies the limit!
And as an Abcourt shareholder, for good or bad, we are all in this together!
All the best! Java