Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-10

Sorry to post here I was timed out in my reply on your post to me


Once again a well laid out and well thought out post from you gb77.
I can understand your view on positive forward PM values but buying a silver bar and holding it is not the same as mining.
It’s costing $50/ton just to process and with all other costs the $212/ton ground they are currently mining is barely making money.
The silver dumps have about $70/ton worth of value with transport costs they might lose money, a lot of money. The resource itself is less than the dumps so unless they can pick high grade eyes out of it looks unviable ATM.
The problem with mining here and waiting for higher PM values is going broke (or continuous CR) before the PM values might make this viable. So a value of a resource is only worth its potential net after extraction, but yes hype on individual stocks can make punters pay up on big resource numbers.
Not withstanding my confirmation bias here that I have already stated, is there something else I’m missing like will production costs significantly come down with more throughput?
Or are they running this poorly to set it up for a buyback?
As a side note seeing your a regular on the silver threads, MKR have effectively gone short on Au albeit as a hedge, but a short nonetheless.