Silver + lead, page-19

ADTs PMs as a percent of its resource is 50.71% whereas BML's is 27.69%. The first table below I created on May 7th using that days spot prices and calculating what a change in metal prices as stated below would do to the individual companies revenue stream. I did this to show that the companies with the highest silver resource as a percentage of their projects total resource had the greatest upside in revenue as a percentage of its prior revenue, assuming that silver was going to outperform all other metals on percentage terms.

BML had the lowest upside of the group because it has the lowest percentage of PMs as a percentage of its resource showing it is more reliant on lead price increase than silver.

Aside from the comparison, BML is severely undervalued on an EV basis and that is why I continue buying but out of the 11 silver resource stocks I track it should have the smallest upside on any silver price increase. This is obviously after BML is first fairly valued for its resources. I still have BML's fair value being 9x higher than the current share price and suspect that valuation will be achieved over the next 12 months. And that is after adding the 50M shares from the latest capex to the share capital base. There is only one other company with greater upside out of the entire list. And my valuations may be too pessimistic, as I only value the base metals at half the value of the PMs on a silver equivalent oz basis. I value PMs @ US$1.50oz and base metals at US$0.75oz on a silver equivalent basis.

The second spreadsheet shows data that could be used to estimate the potential revenue value that could possibly be achieved noting most companies have not conducted a feasibility study. You could get a rough idea by looking at the total project silver equivalent resource grade or the metal value per MRE ton and then add a discount to the operations that are underground operations compared to the open pit operations. What stands out is the mammoth cashflow potential of ADT. It has no peers but at a A$1.32B market cap it probably has less upside on a percentage basis than the rest of the companies in the spreadsheet, but I suspect will pay a very nice dividend.


At Todays Spot Prices