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20/09/13
10:19
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So as the Silver price has bounced 8.1% so I thought I would get my model out and work a valuation again.
Using
Silver at $23.62
Production at 700,000 Oz Average of 5 years (NO RESOURCE UPSIDE FACTORED IN) and no gold. so add value there.
Grade at 50% of what the company estimates – so $148.50 g/t
Capex at $66M
5 years of production only
I get $0.73 per share, curent price...$0.28.
Im buying more.
So what do you think the red kite guys will do when they see that valuation and the silver price.
Best guess
They will make a decision that makes sense, take an equity position plus finance the operation.
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