Silver Stocks Booming, page-69

@jpsun
you're thinking with metallic blinkers on imo

pmy's lead/zinc effectively makes it a likely zero cost producer of its silver ounces. ie. there's so much lead of decent grade that it will pay for the mine plus deliver positive cashflow all by itself. all its silver ounces effectively should be produced at $0 cost on which it will make 100% profit (well 85% as silver recoveries are 85%) - of which total project is 54moz and PMY owns 40Moz

ivr's silver (50Moz total at 30g/t cutoff) has to pay for its mine to be built and opex. So it may notionally effectively produce 20Moz 'free silver' for eg - with 30Moz going to paying capex and opex

Ivr's key distinction is mainly around high grade benefit
- front end load high grade production to pay down capex quickly in high price silver market
- selectively high grade mine if silver price nosedives - so mine remains profitable or near when others arent

PMY also has a much better history of growing its silver resource in past 5 years and imo is more likely to become the 2nd largest silver project by equity in Oz than IVR. both SVL and IVR have been drilled for 10 years without meaningfully changing their resource. unless the geos were clueless, thats telling

Where PMY suffers by comparison is if you get a really massive sustained silver rally - you know +$us100/oz for several years. then nothing beats svl (or myl assuming it doesnt get robbed), then ivr, .... then pmy
- or in the event you think base metals are going to collapse but precious metals skyrocket

- but a collapsing USD suggests all hard commmodities should do well - and history shows very few occassions when metals totally decouple

im in both IVR and PMY pretty much equally currently - so i dont really care which eventuality wins out. though PMY is the stronger bottom up valuation/business case.

but i had to point out what i see as a serious flaw in your thinking

this is why the central key to investment it total metal grade and project size - not grade only or size only

total economic value/baccking at least cost per share and lowest likely cost of production - thats the sweet spot