The more important indicators to watch are if the Life of Mine is extended and if LEAD prices are forecast to stay above the DFS assumptions and not simply gravitate around the average. Silver won't be digged up unless they are able to fund the mine for Lead.
Why? Because Silver is typically a high volatile commodity with a very short life span when it breaks out. Folks simply need to look at a historical chart of Silver to see how the peaks and troughs are violent. Financiers won't make a decision to fund a Lead mine based on Silver only because of it - they'd be risk adverse to that opportunity.
They finance pure silver mines with significant life spans because the economics (especially in low labour geographies) makes sense. They finance all sorts of other commodity mines with Silver credits, because the other prime commodity provides a better level of certainty risk will be mitigated. That said, the % paid according to risk also needs to be factored into the FID.
Look at all the big established miners - they mine silver as a byproduct only.
BML Price at posting:
11.0¢ Sentiment: None Disclosure: Not Held
