Hello Newbie,Welcome. I do not see this as a receviership or...

Hello Newbie,

Welcome. I do not see this as a receviership or liquidation risk. The resource is overwhelmingly valuable and getting more so, because of the current silver price and increased resources with exploration. The company has come this far without receivership and liquidation. This is a small hurdle compared to some it has had since 2018.

SVL has significant other ground and also is exploring elsewhere. This is the main string to its bow, but it has some promising other prospects.

SVL was not cashflow producing at this point, so the decision does not take away income. Instead, it introduces more consenting cost and time and a little but probably not much risk. The assessments of impact on the local community, wildlife, the enviroment etc were found to favour the mine. They are unlikely to change. A power line does not, for example, result in more lead.

A power line, the aspect needed, is fairly benign and hardly adds much impact. If power lines were not benign then one wonders why they are put through cities, accross residential areas and over farms. If they were not benign then large scale solar generation would not be consented, given it needs transmission lines.

A capital raise may be needed, but one was done recently and the funds from that might be used.

A much larger capital raise would always be likely unless there is a JV partner, at the point of funding the physical infrastructure. This should be easily obtained at that point.

It is purely guesswork, but let's say this adds 6-12 months and $3 to $8 million (this incudes the power line impact assessment etc which was always going to have to be done, but a more global assessment will now be needed), those have to be viewed in the course of a project which would from here cost about $300 million and a further 2 -3 years until completion of all infrastructure in any event. Concurrent work especially planning and exploration can continue in part.

Viewed calmly this is a far more investable stock than most exploration companies - it is a long way down the track to a hugely profitable mine. SVL has a great resource and has been managed well, by a team who can get this off the ground. This decision is hardly an indictment on mangement - the consent authority, the planners and the mid-tier appeal court had the same view - that the consent was fine. It is only 2 out of 3 of the Court of Appeal who disagree.

It follows that IMO the sell off is grossly overdone and some coverage and comments unbalanced.

Not mentioned by many is that this project, with processing off-site, has been structured in a low impact way. It will be a strong employer and silver has so many uses. They will only increase with the transformation to greener energy sources. This is an important project for the State and Australia (economically and because Australia needs to be open for business and have its own important metals supplies. Silver is far more useful industrially than gold and vital for many renewable projects).

GLTAH.