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Strategies & Market Trends : Ride the Tiger with CD

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To: Canuck Dave who wrote (85842)	6/25/2007 11:23:12 AM
From: zoo york	Read Replies (1) of 313083

SPM has issued a full comprehensive update that addresses any possible issues that an investor may have: There is enough cash to pay for all the expenditures, they will not have to raise more money. Specific details have been provided for the status and installation plans of all critical equipment and infrastructure. The economics of the mine were addressed as per the PFS issued earlier in the month. It is worth repeating that the company expects to have negative costs per ounce of silver. That means they earn about a buck, plus the silver, just due to the processing credits of the other metals. But one should also realize they are using very conservative cost assumptions for those metals, and there will probably be a lot more extra profit generated using real world pricing assumptions. The company is already 'mining' at a sustained rate as they advance underground development and muck ore and waste out. The lower grade development ore will be used to tune the mill and recovery plant, so they will end up earning some revenues from that material before they start running production ore. I am bullish as hell about SPM, and I cannot understand how that news today was met with further selling. This is NOT a rational market, and the biggest unknown risk that remains is how long it will take the company to get the mill running up to design specifications. If the construction is completed on time, and it looks like they have a viable timetable, then I would expect that they will begin running feedstrock through the mill before the end of the year. It sure looks to me like SPM is way undervalued, and 6 months is not a long time to wait for a bargain stock to perhaps become far more valuable as a profitable producer, but WTFDIK? cheers! COACH247

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