Santacruz Silver Mining Ltd V.SCZ

A gem of a buy?

[Sinbob]

 Just did a quick look at the 2023 presentation: besides an excellent management team: Just a quick overview of 2023 presentation: plus 20 million oz. silver equivalent; mid-tier producer in Bolivia and Mexico with 6 producing mines; solid platform for sustainable, organic growth; increasing operational scale; exploration upside at all Bolivian concessions; funded growth; existing growth pipeline; future mergers and acquisitions; perspective development asset; ore trading/cash flow business acquisition; well capitalized producer with financial flexibility. HUGE UPSIDE LEVERAGE TO PRICE OF Silver.

 With the acquisition of the Glencore Bolivian assets, Silver equivalent production increased 336% over 2022 to over 15 million ounces; silver production increased 334% over 2022; 330 million shares outstanding ( plus warrants and options 472 million shares). This was with silver valued at $25/oz. Shares trading at 36 cents. P/E ratios for MAG Silver is 43; for Barrick and Silver Corp it is a P/E of 21. SCZ is woefully undervalued at a P/E ratio of 3.6 . ‘Simply Wall St.’ has them grading at 89% below market value. What gives? SCZ is a serious mid tier silver and base metal producer. We haven’t see the numbers yet for the full year 2022 but the ‘all-in sustaining costs’ for silver in the third quarter had reduced to $20/ounce. Based on all of this one should think that the SCZ PE should be at least half of Silver Corp. at 10. The share price should be around 60 to 70 cents at a minimum the way I see it. It may be a lot higher once the full year end report is out and digested. This gem has serious momo I’m thinking.

 

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2 minutes ago

[tarnoir]

I think the discount is likely attributed to Bolivia and the outstanding $$$ owed to Glencore still. Regardless, I agree. Huge disconnect. Likely need Zn prices higher.

[Atima]

Why is the stock down? Bolivia, Glencore dumped it cheap (maybe know something about operating mines in Bolivia owned by the Government?), management couldn't operate anything successfully in Mexico, ~family controlled company. Clear now?