the trees grow not in the sky

Hallo together,

as you all I have of course the price movement enjoyed in recent days. I wonder, however, is to end where this noise. Ultimately, the trees grow not in the sky, so far only future was traded, has not yet been produced one gram of silver, and I prefer to stay with my feet on the ground.

The price trend has to do essentially with the psyche of the players involved. Shares letters give the recommendation here is a silver producer is to get a bargain price.
The price of silver goes from a high to the next.
But what are the fundamentals of what is realistic?

This time I have played through several scenarios. Would just simply ask as a basis for discussion in the room and am of course happy to learn and grateful for corrective instructions.
First there was the question of the production volume can be achieved this year 2011?

With an annual capacity of 1.5 million / oz are the
375 000 oz per quarter,as I understand the fix, the production gradually ramped up, so I put in the calculation for the III. and II. quarter of each half of the next Quarter.

1.5 million / oz per annum

(IV = 375.000/III 187.500/II = 93 750 = sum of 656 250 oz in 2011)

2.0 million / oz per annum

(IV = 500.000/III 250.000/II = 125,000 = sum of 875,000 oz in 2011)

Could imagine that Mr. King by .......................... 770 000 oz in 2011 proceeds, which he sees value
in the silver price down
A $ 27/oz has made secure.

In my further reflections I go by the rules of MFC500 from his review of 621 of 12.18.2010 and quote it below. After serum 4 - Post 624 of 12.18.2011 MFC500 is one of the best Management consultant, he was allowed to meet in the forum wallstreet online.
I appreciate the similar one on the profile of MFC500.

This is for simplicity 1 A$ : 1 US $ = 1 : 1 assumed

Silver price 28.5 AUD/oz ./. costs 13.5 AUD/oz = 15.0 AUD/ oz margin

1.0 million oz annual production - 15.0 million profit

1.5 million oz annual production - 22.5 million profit

2.0 million oz annual production - 30.0 million profit

Due to the relatively small resources granted to the operational P / E ratio is likely to MFC500 rather are at the lower end. The range of theoretical market capitalization

1,0 Mio oz - 45,0 - 75,0 Mio

1,5 Mio oz - 67,5 - 112,5 Mio

2,0 Mio oz - 90,0 - 150,0 Mio

---------------------------------------------

770 000 oz at a margin of 15.0 ..... A$/oz = 11.55 million profit
Silver price $ 35./.13,5 costs = 21.5 A$/oz= 16.55 million profit

11.55 million : 1.3 billion shares = $ 0.008884615 x 5 P/E = $ 0.044 = 0.032 Euro

16.55 million : 1.3 billion shares = $ 0.012734615 x 5 P/E = $ 0.063 = 0.046 Euro

----------------------------------------------

Going by the above determined maximum production volume in 2011 of 875,000 oz in 2011 and a margin of 21.5 $ / oz (ie silver price = 35 $) from.

875 000 oz at a margin of 21.5 ..... A $ / oz = 18.8125 million profit

18,812,500 : 1.3 billion shares = $ 0.014471153 x 5 P/E
= $ 0.072 = 0.052 Euro
----------------------------------------------

Since the current price is already above it, could, as the stock market developments 6 - anticipating 12 months, even as the full production from 1.5 to 2.0 million / oz of next year 2012, higher silver price expectations, Resourcen expansion be priced in addition to the positive recommendations and market letters.

Greetings

LSS