Just thought I would post an update of my spreadsheet that compares aussie silver companies. I have added USL and ADT to the spreadsheet. The valuations are made using today's spot prices for each commodity and today's AUD exchange rate.
What I find interesting on this spreadsheet is the comparison between MMA, SVL & ADT. ADT are more advanced and are in the process of building a mine in Bosnia. ADT, SVL and MMA have a total resource in silver equiv ounces within 15% of each other and the current value of said resources is within 10% of each other. SVL and ADT have their resources at the measured and indicated level whereas MMA's is inferred.
The silver equiv resource grade is where ADT shines. Its grades are 70% better than MMA's and 800% better than SVL's. MMA's grades are 400% better than SVL's.
SVL & ADT have a larger percentage of their resource (over 50% compared to 36%) in PM's so they may rate a higher premium because of this fact.
But does the above comparison justify such a large premium in market capitalisation for ADT & SVL compared to MMA? ADT has a market cap 25x MMA's and SVL 6.5x MMA's market cap.
What this comparison shows is that if MMA keep drilling and proving up its resource and are able to extend the resource in the SSZ (Shallow Silver Zone) closer to surface and silver finally breaks out to the upside, then there is no reason why MMA share price could not close the gap on ADT and SVL.
MMA Price at posting:
23.0¢ Sentiment: Hold Disclosure: Held
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