Interesting presentation by Crescat Capital in their latest update and it circumvents arguments that have been ongoing on the BML website with regards to the amount of silver in the earths core in relation to gold being a ratio of 15 to 1 and up to 26 to 1 depending on which scientific document you read.
Crescat showed that the average annual production of silver over the last 3yrs has been 820M oz but the gold production has been 98M oz. For information, there is 32,151 troy ounces in a metric ton. What this shows is that the gold/silver ratio in the earths core does not reflect the gold/silver ratio on what is actually mined.
The actual mining ratio is 8.5 to 1. Furthermore, only 43.5% of silver is produced via gold/silver or silver mines. The remainder is produced as a byproduct of lead/zinc/copper mines.
Base metals mines with low ratio of silver as a percentage of their production, especially in the lead area may start to come under financial pressure due to suppressed commodity prices resulting in mines going into C&M etc. A good example is G1A who's Galena Operation, whilst still producing has been suspended for 2 months whilst looking at a debt restructure and cash injection. G1A's resource is 91.5% lead and 8.5% silver whereas BML's resource is 73% lead and 27% silver. I'm less optimistic of G1A's outlook if the current oversupply of lead is taken into consideration which must have an impact on the forward future price for lead. As lead/low grade silver mines come under increasing financial pressure, this results in further cuts in the silver mine production at a time that silver usage is rising in solar & electric vehicles.
I also watched a video taken in China where thousands of people were lined up to buy gold/silver bullion possibly due to fears of the deteriorating economy in China. Silver last week was selling for almost 10% above the spot price in China ($25.50 Vs $27.75). What is happening is the western stockpiles of silver are being withdrawn and making its way to China purely as an arbitrage trade. The speculation is that silver is closer than ever to a major breakout. Silver may have been repelled at $26 again this week, but the next attack on $26 has a very high probability of succeeding and $28 will come very quickly.
We shouldn't have too long to wait to see how BML share price reacts to a silver breakout above $26. Those banging the desk and preaching that BML is a lead stock and does not react to the silver price, imo will look like turkeys dressed up at thanksgiving.
Oh, by the way. I have the BML forum low life on ignore, so by all means waste your time responding.
(20min delay)