Hi all.
@fbx258All I can say is that we must be getting close to the next strategic move.
Fingers crossed that they have access to another great resource addition at the current 27c / res oz.
I do like the technical support we currently have along with the rising fundamentals.
The supply / demand balance is growing each year.
Silver demand in 2022 was 1.24b oz against production, ( according to Keith Nuemeyer ) is 850m oz.
According to Mining Weekly, production fell slightly from what Keith said and is now down to 822.4m oz.
Without recycling there is a deficit of just over 400m oz.
Keep in mind that the current silver price has caused recyclers to to abandon and hence recycling has halved.
This is happening while the demand is booming from the push to EV's and renewable such as solar.
If BRICS is commodity backed, what could that do to the GP?
That would only put the Gold Silver ratio even further out of balance which can not last.
The wait for this to play out may not come soon.
https://www.miningweekly.com/article/record-demand-pushes-silver-into-biggest-deficit-on-record-2023-04-19I will also be expecting an announcement this month for drill prep and date for commencement.
Wish I knew more and will make a call soon for an update if we don't get something in the next week or two.
Meantime mr
@fbx258 we all enjoy your technical views and to fill in some waiting time, here is a reminder of what Keith thinks which will show why your views will prove to be correct.
At 6min 30 he talks of the numbers and how the demand is only set to rise dramatically so the shortage will create a rapidly growing demand surge.
At 14.3 min, we get an idea of the silver price management? yes Management.
We have 1b oz of silver traded each day. PER day.
The production is less than that amount in one year.
What sort of an imbalance is that?
These are testing times for the buy low mentality as the patience aspect is the hardest of disciplines.
I am mindful that Sprott is a major sh here and will no doubt have plans to see this grow into a much larger entity.
The problem for holders is that we get updates after the event and complain in the wait time.
I am holding here and not for the short time frame I might add.
I just keep thinking of where the silver price may be by the end of this decade.
Keith mentions his thoughts on the silver price at 26 min.
No one knows what that will be but if we consider his opinion of $125, ( I personally don't see that until late this decade ),
What will that mean for us when our cost of resource is at 27c. an oz?
If you take the mc, take away the cash holding then divide that number by the 92m oz resource, you will have the current silver oz value of USL.
So if the mc is $32.56m
Cash at Mar 30 was $3.7m plus the CR of $5m and the SPP at $1m gives us an ev of $22.86m.
Then divide that by 92m oz and we get a current silver oz value in this company of just under 25c.
Why would I not hold that given the supply demand imbalance that continues to grow?
At 39min, Keith hints at the suggestion of ev producers needs for silver supply and possible lock in options.
I think this could be mouth watering.
Here are some questioned asked to Chat GPT.
Another aspect to consider is the current gold silver ratio on the chart.
One would no doubt have the opinion that this is about to change, fingers crossed for the upside but it does look like the tide is about to turn.
Kind regards, Wack.
(20min delay)