ARD look set for some serious rerates to me, if the good Doctor graces this stock with a recommend, things could go ballistic. Credit to whoever picked up those 2 cent options before Easter!
Main issue with ARD is that production isn't until 2013, and their grade cutoff is pretty dependant on the POS staying up. Talk of $400 silver by 2015 is fanciful, but I can't see it settling much below $35 in the medium term, and at that level ARD should be very profitable. It would be a very high risk recommend for the Doctor but it does seem he is quite sold on the Silver story from his last few newsletters. (I don't think any of that is a breach of copyright mods, apologies if so).
Positives for me are that the board have a serious geo team working on things, and aren't just speculating on the silver boom, the strip ratio on those pit shells looks tasty too, but the main one is that SVL, AYN and CCU have gone up by many multiples while ARD are still in first gear, even a partial catch up to the others would return many bags, especially the ARDO.
Would love some analysis of the mine dynamics and likely costs of ore treatment and floatation (rumoured to be expensive).
Overall I'm pretty happy with the risk/reward here, a little of the former and heaps of the later...
ARD Price at posting:
24.0¢ Sentiment: Buy Disclosure: Held
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