Timing, timing, timing as our likely long gone friend goldbear used to say. They start silver production... at the lower prices in the last 2 years. And while they could still make a profit right now they had issues starting it up and now have documented losses on that silver. On top of that the iron sands, which if it got going is a VERY GOOD project, but it is not certain it will ever get going. So that is all people can go from for now.
It isn't just MKR either nearly every similar competitor is doing similarly on the ASX. Potential for WW3 is causing issues among the sector due to diesel prices. And that is the biggest unknown I didn't factor into 2022, I thought that may happen in late 2023, early 2024 but it happened way sooner than I thought which has caused diesel to skyrocket, which means silver and gold prices need to be higher to compensate but instead they went backwards.
If this war doesn't "improve" soon I think lower than 12c could be expected with MKR, and all precious metals related plays may follow suit without a raise in spot price . Russia and their allies (or people neutral to them) comprise a majority of the world. The west finds themselves in a situation now where even a loyal country like Saudi Arabia is turning away from the petrodollar and joining BRICs. This is extremely bad for the West if it happens, it is hard to communicate the scale of that problem to people without much education on it but it is going to bring major, major pain.
All this being said, BRICs is basing its new currency on gold, silver and other commodities (great news), LBMA is nearly bankrupt of available silver, so is COMEX. So in regards to silver the situation is months away from seeing something major play out. Hopefully prices follow suit and all silver related plays on ASX can take advantage but right now we face an optics and logistics battle.
If I was a new investor looking at MKR or any silver play anywhere in the world right now..... there is no way to really know how it will play out. There is great reasons to invest in silver plays and great generic reasons not to invest in silver. So it is like the roulette wheel, so I expect new money into silver plays to remain similar until something tips it into its favour. Any real news about Russia peace deals, or Ukraine capitulating, are signs that getting into gold and silver is smart again, this will tip it back into favour I think.
Physical silver and gold right now are being bought at levels not seen before because people are worried about the future, which is good and bad for anyone involved in gold and silver plays. If we can't have a functioning economy no stock anywhere in the world is going to do well but high demand is good for us, so. Who likes roulette?
Expand
(20min delay)