Gold and Silver Juniors, Mid-tiers and Producers Message Board

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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: loantech who wrote (58823)	4/20/2008 12:56:02 AM
From: baystock	Read Replies (1) of 78405

>So when fully up to speed about 9 mill ounces of AG equivalent. Sales price of 18 bucks per ounce minus a cost of 7 bucks per ounce = 99 million cash flow. 250 million fully diluted. CFPS about 39 cents. A decent multiple is 10 for this size a mine. Puts the share price at 3.90. < Hi Loantech, A CFPS of 39 cents per share would indeed be very good for a company with a share price in the low 60 cents range. But unfortunately in the case of US silver this is not true. On page 8 and 11 of the company's own presentation you will see that they are forecasting much lower cash flows: us-silver.com I think the discrepancy between your numbers and theirs arises from the use of AG equivalent. You use AG equivalent to increase the production numbers from 4 to 9 million while the company is using the same copper and lead as credits to come up with a $7 per oz cash cost on only the silver production of 4 million.

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