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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@Wannabeinvestor$SVB similar global AgEq oz and slightly higher grade than $MAG, EV/ global AgEq oz US$0.07 (SVB) vs US$ 2.80 (MAG) as per Haywood. That discount is out of whack.
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@Let_them_eat_silverI am a huge fan of SVB (and recently picked up another 45,000 shares) for its silver, irrespective as to whether the zinc ore is somewhat refractory for zinc extraction.( I believe Mr Coffin queried that back in February, but I see that no one has commented further)
@chatyak@PamplonaTrader - I put $500 towards $SVB... all I had left. I have so much to learn. I'm not sure how you got to the calculations of total mineral inventory and such with equivalents in Ag and Au but I'll take your word for it. I'll look at the powerpoint again. I get lost on the math slides and techno lingo.
What I don't understand is how, as @Wannabeinvstor stated, "SVB similar global AgEq oz and slightly higher grade than $MAG, EV/ global AgEq oz US$0.07 (SVB) vs US$ 2.80 (MAG) as per Haywood. That discount is out of whack."
Should not SVB's share price be in line with Mag's if that's the case? Unless it's just has a lot of catching up to do? What would be the reason for SVG being 50x less than Mag?
@Wannabeinvestor@chatyak, I suspect the main reason is that $MAG has been on the radar of institutional investors for years, they are in the process of developing a mine and there is M&A underpin ($FRES is the majority owner of the mine they are jointly developing), so share price includes some take-out premium already. $SVB is a small cap that likely has limited or almost no research coverage at this stage. a more interesting question is what will it take to get $SVB re-rated?
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@Let_them_eat_silver"•A high grade measured and indicated "Zinc Zone" of 10.03 million tonnes at an average grade of 11% Zinc at a 6% cutoff for 2.426 billion pounds of zinc.
•A high grade measured and indicated "Silver Zone" of 19 million tonnes at an average grade of 102.5 g/t at a 50g/t cutoff for 62.6 million ounces of silver. Many Thanks"
@chatyakWhat is considered a low grade vs high grade? Looking at SVB's website it shows "Silver Zone" of 19 million tonnes at an average grade of 102.5 g/t at a 50g/t cutoff for 62.6 million ounces of silver."
Comparing to MAG's powerpoint presentation.. their Bonanza zone is over 500 g/t.... and compared to other averages of 280g/t.
Does this mean it's a poor play now but a good play on higher silver? Almost like a call option?
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@Wannabeinvestor@theDailyGold, as per recent Haywood report, on AgEq basis $SVB actually has marginally higher grade, 183 vs 176 gpt. Ag grades are lower, 91Moz @ 48gpt vs 143Moz @ 62gpt. Truth to be told, I am quite surprised Haywood claims MAG's grade is as low as this -- thought they were way above peers. $SVB's Zn grades are high, that impacts global grades. MAG surely is seen more of a silver play than $SVB.
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@greg@chatyak regarding your $SVB vs $MAG questions, they aren't comparable. Mag has 200 m oz of approx. 600 g/t Ag, a jv w/Fresnillo, fully funded to mine opening in 2018, AISC under $7. Apples and oranges, IMO. Also may have discovered 2nd bonanza zone, see Aug. 15 press release.
@chatyak@greg - thank you. I'll have a look. I initially purchased a small amount because of the amount of ounces and the zinc play seemed interesting - @PamplonaTrader 's charts also showed nice pattern.
Is this something worth holding through the silver bull run or more of an exit after a spike up in the pattern?
I remember learning before about how a higher AISC can actually produce a greater profitability return in terms of percentage changes as prices rise - can't find the article now.
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@chatyakFound it - was an article from Zeal's site. Here's the quote:
"While I prefer lower-cost miners since I like fundamentally-strong #gold stocks, higher costs actually have greater upside profits leverage to gold-price increases! So if you expect a major gold bull or strong gold upleg, higher-cost miners actually have more upside potential. This seemingly-counterintuitive outcome is easy to understand with a simple example. Consider two hypothetical gold miners, LowCost and HighCost.
LowCost produces gold at AISC of $600 per ounce, so at $1300 gold it’s earning hefty operating profits of $700 per ounce. Meanwhile HighCost’s AISC are $1100, so its $1300-gold profits are far smaller at just $200. If gold powers 54% higher to $2000 in a major bull, LowCost’s profits double from $700 to $1400. But those 100% earnings gains are dwarfed by HighCost’s soaring from $200 to $900, a vast 350% rocketing!
Since stock prices ultimately reflect underlying corporate profits, higher-cost miners have much greater upside potential in a gold bull than their fundamentally-stronger lower-cost peers. Bigger profits growth equals bigger stock-price gains. So don’t avoid owning a gold stock simply because its costs are higher than its peers, as long as they’re still low enough to weather a major gold selloff. Costs are critical for profits."
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@chatyak@kjm - ok here are my holdings based on what I've been able to learn and read on my own over the months with a quick one liner on each. If anyone has a serious red flag on any, please do speak out to help out a 'noob'.
$AXR - Keno hills area, proven mine before, spinoff 2nd business, decent moves to Ag spot
$BCM - massive leverage, massive deposit
$BRI - Amir - the younger version of a Beaty / well known brand (possible rebranding they may do I think)
$CNX - zinc play, FMT known
$FF - Keith - I have trust, one of my larger holdings (well, large for me)
$GMV - Need to rejog memory on this one, came about from here and @hra-coffin$GRG - Read up on their play with likely interest from Silver Standard - FMT had some nice info on them$HL - larger shorts on this one - upside in a move up potential$KNT - bargain shopping from Barrick
$ME - decent golden highway play, takeover target?
$MXL - Forget why
$NGE - exploration / wayne
$NHK - Reccomendation from here
$SSP - optionality play - management seemed well versed, think an article was on here somewhere
$SEA - big deposit and tight share structure if I recall
$SVB - @PamplonaTrader - bulls eye chart article
$SSV - More room to go, need to recall specifics
$SMD - lots of options and properties
$THO - received these on a takeover from lakeshore gold
My larger holdings are in FF, BRI, AXR, SSL, BCM, ME, and SEA. Hecla and KNT messed up - can't fix formatting above.
I would consider $SCZ or $MYA over $BCM, as they offer leverage to silver price but not the kind where you're having to rely on a very large and very marginal undeveloped deposit. If you like large, marginal deposits I prefer $SVB over $BCM. $SVB needs to be watched carefully though as the technicals are starting to look sick. A bounce is badly needed in the next couple sessions or I would blow it out.
$HER, $TK, $SLR and $VTT over $CNX. You'll learn alot more about $HER$HRR.AX in the coming days. #zinc
I would probably blow out $GRG and any position for which you can't remember the why you've invested ( $MXL ).
@Excelsior@motorolja - those are all solid companies so you should make a fortune in next few years as this Precious Metals bull market gets some legs. I need to get on the $EXN train but I've had a fairly substantial exposure to Silver and it's hard to own all of them.
Yes, I've been watching $DEF since last year when Bob Moriarty tipped me off to them. Interestingly enough, Peter Hawley (the man behind Scorpio Mining that split into $SGN Scorpio Gold and Scorpio Silver - that became US Silver & Gold after merging with them, and is now $USA Amercias Silver Corp) is now on their board. Defiance needs money to keep drilling out their property, but I wonder if either $USA or $SGN may eventually do a JV with them or even consider a merger?
Defiance Appoints Mine Developer as Chairman July 21st, 2016 https://www.defiancesilver.com/news/defiance-appoints-mine-developer-as-chairman
As for $BBB - they have the prior producing Langis Silver Mine, and the prospective Gold/Silver Thorn property in the Golden Triangle. Hey, if it is good enough for Rob McEwen, Eric Sprott, and Hecla to have a stake in it, then it is good enough for me :-)
$MSV does look undervalued compared to their peers, and I hear everyone discussing $SVB but really haven't given it the attention it deserves, so I may do a little more homework on it.
@marketwiredSilver Bull Commences 3,000 Meter Drill Program @marketwired/silver-bull-commences-3000-meter-drill-program-b0ef4$SVB$SVBL Exploration program targeting potential sulphide mineralization at depth believed to be underneath and adjacent to existing deposit. 590 line km airborne mag geophysics survey completed in August and September. More than 20k meters of drill core has been re logged and a new structural model has been developed for the main deposit.
@RocketRed$SVB 58.7 million tonnes grading at 3.6% zinc and 50 g/t silver for 4.670 billion pounds of zinc and 90.8 million ounce of silver.
A high grade measured and indicated "Zinc Zone" of 10.03 million tonnes at an average grade of 11% Zinc at a 6% cutoff for 2.426 billion pounds of zinc.
A high grade measured and indicated "Silver Zone" of 19 million tonnes at an average grade of 102.5 g/t at a 50g/t cutoff for 62.6 million ounces of silver.