valuation metrics of svl, page-24

RhodestoRitches,
your calculations of SVR at 39cps [fully diluted] is about right. But in rating a company's share price it is also important to understand the nature of the underlying commodity and its implication in the grand scheme of things.

There is a growing consensus among numerous insiders that we might have a QE2 before the mid term elections in the US on Nov 2. If this happens, this will create an influx of money into the world's markets that will eventually filter down to the speculative juniors. Once main street investors understand its true implications and that a coming inflationary environment is on the horizon, they will flock to hard assets as an hedge..the mass market will then look at gold/silver producers and juniors. This sentiment was experienced in the 1980s mania.

Indeed, there are a number of great silver producers and royalty firms in the international markets [i.e. Silver Wheaton, Franco Nevada, New Gold, US Gold etc] but for OZ investors, there are only a handful at that. If an environment of dollar printing continues to happen, we can safely say that SVL will be rerated much higher based on its insitu figures.

The calculations we have put forth are just one factor in the grand scheme of things. Bottom up or top down valuations....we still get the conclusion that SVL is undervalued. It is always important to drink upstream from the herd.