Discovery Silver Corp T.DSV

Not a Cash Cow?

[cbew]

Our new poster MK saids at current prices DSV is not a cash cow.  Well let's have a look at the numbers shall we.  According to the latest PF the all in sustaining costs to produce an oz of Ag is 12.80/oz for the first 12 years of production and 13.60/oz over LOM.  Annual production is going to average 33Moz/year.  Using these figures average annual profits would be ( using 13.60/oz LOM costs )  25-13.6 = $11.4/oz to the bottom line x 33 Moz per year = $376M US per year.   

If we factor in another 25% dilution of the stock for capex expenditures to give 500M shares.  The cash flow would work out to be 376M/500M =  .75/sh.   An average multiple of 10 for producing mines will yield $7.5US/sh.   So that's $7.5US/sh just using current prices.  This isn't counting any further exploration potential.  If Ag prices go to just $30 we are easily looking at over $10US/sh for the cash flow.   NOT A CASH COW???   PROOF MoneyK doesn't know what he's talking about.   DO THE MATH MK before you post your nonsense.  LMAO

[MoneyK]

No need for maths, there a nice cash flow chart in the PFS and your results are off. MoneyK

[cbew]

MK you are just as disingenuous as you are evasive.  Here's what you posted:   At current prices, this mine is not a cash cow. And that's what I refuted in my post.  At today's prices 375M in free cash flow would be considered by most companies as a cash cow. Learn to read yourself as my headline clearly states my refute of your post.  You said $10 is not

[MoneyK]

Why are you agressive and rude?  Im not here to compare with Copper Fox... just giving my opinion that I believe 10 US is pipe dream for now. The total cost here is more around $18.  Just a fact based on the PFS. One needs to use long term consensus prices to build assuptions, not spot price. Not a bad project, but not going to $10 unless silver booms. This is a silver play, nothing

[cbew]

LOL And I'm refuting your opinion MK.  I know what your agenda here is.  As for being rude.  That's rich coming from a guy that accused me of having 2 aliases, of being a paid basher etc.  You're the one that needs a lesson in civility. 

[MoneyK]

Agenda? Did my DD and sharing my opinion. Better places for my money at this time. BTW, somewhat immature attacks, but hope you feel better. Good luck to all. MoneyK

[cbew]

Yeah your free to share your opinion MK.   I'm free to share mine.  Its all good.  Just showing people here what your opinion is worth LOL.  And thats my opinion.  People are free to decide for themselves.  Good luck with your CUU.   So sorry you've been waiting ten years and tying up ten years of your money for a project that basically hasn'

[MoneyK]

My average for CUU was 10 cents and now riding along with free shares.  Thanks for the concern. Getting back to your logic, Schaft Creek is 350M of CuEq per year and LOM AISC of $1.18$. Using the same reasoning, that would mean 100% SC could be worth  $10B US, making CUU worth $5 per share?  Thats your logic and even me would fully disagree with that, even once in production

[cbew]

Well like I said before and posted on the CUU board you can't use figures from a PEA to make any kind of accurate price analysis.   A PEA is not a verified and confirmed price analysis equivalent to a PF or FS level study which you always quote and make your comparisons.   PEAs are based on many  assumptions about costs, recoverablity etc, and also include unconfirmed

[MoneyK]

I would use a conservative PEA any day as reference.@ Its an independant 43-101 document made by engineers and geologists. Even the DSV corporate presentation on slide 17 shows the re rate potential here.@@ $3 to $5 is possible but $10 less likely at these levels. Look at Coeur, Mag, Silvercrest.  They are in production and worth between $1B and $2B, not $4- $5B.  Plus, most of their

[cbew]

Well that's where I would disagree with you.  Coeur, Mag and Silvercrest are in production yes true and the market is valuing them accordingly to their production profile at current prices and any potential future resources that may be discovered on their properties.  DSV is not in production yet and my projections are for years later when they are and Ag prices may be in the $30

[MoneyK]

Not sure why you always bring back CUU.  Not here to compare them.  So... finally...glad to hear we agree that eventually, $10 could be possible IF silver moves to higher levels for a sustained period.  All very speculative, but possible. For now, 3x to 5x is possible, but that could take another 2-5 years, unless silver rallies before. IMO. MoneyK