ggc.v - sorry Tom, i missed your post entirely, and missed the news until this morning ... really am not watching the mexican silvers, got a whack of them but a strong level of conviction as well ... but i did scan the ggc news this morning
It looks good, it's what they need to do, get bigger 43-101 resources out there ... four and a half years reserves at current production, three years if/when they get the mill rolling to capacity ... also cheaper ore from the open-cast deposit, that will definitely help with costs
They need to do more, and of course they're working on it, the programme has only started ... Claude has a great post upthread, about how the lack of sizable 43-101 resources will mean a company gets judged on cash flow [and he supplied the somewhat harsh figures of 2-4 times cash flow, he may be right on that] .... most all the mexican silvers will imho be judged on some combination of the two, but get the full benefit of neither until they have demonstrated one or the other quite amply
But Genco is doing great imho, they're on track ... can't see the share getting much attention beyond its peers in the short run, considering the season and their state of progress, but it's still my biggest position [by cost] after Metalline, and i'm happy with that ... cheers
[edit] - here's Claude's post - Message 22949732
'No doubt that profitability is determinant on tock prices. But a cash flow generator with no reserves will sel at 2-4 times cash flows.'
... in reference to Impact ... of course he says 'with no reserves' and many will have some, so that may help ... but very few of the mexican silvers will in the medium term have 43-101 resources anywhere near the level of metal that we know damn well is in the ground .... so drilling is important, but so is mining and milling imho, even if it means you have to sell silver for a measly twelve bucks for a while ... |
