A series of recent posts from the Silver Bull board at Stockhouse... (TSX: SVB, OTCQB: SVBL)
RE:Anyone here?
By Heywood_Silvers
July 21, 2020 - 11:21 PM
South 32 noticed and they are working towards solidifying their JV requirements to earn 70% of the project. I guess the rationale is 30% of something huge is better than 100% of not a lot.
This has over 100mm ounces of silver and a boatload (4.67 Billion Lbs) of zinc. This is the southerly trend of the system that extends up into Arizona. Wildcat Silver was bought out by South 32 in a multi billion deal a few years ago, so they like what they see here.
At 11 cents there is not a lot of downside, especially in a market where silver is looking to rip.
stockhouse.com
RE:RE:Anyone here?
By roadtrain
July 22, 2020 - 06:41 AM
South32 delayed their run to buy Arizona Mining Hermosa project and ended up paying a premium as the share price rose.
I this case the bid price is set for 70% they may not want to make the same mistake with the remaining 30%.
Government trust rules and approval to be obtained .
Blockade issues will be resolved.
Silver price looks ready to run,show us the action.
stockhouse.com
RE:RE:Anyone here?
Wazup26
July 22, 2020 - 07:16 AM
@heywood_silvers
How would you value SVB shares based on what's in the ground and assuming we keep 30% and permits and other issues are resolved?
There are so many juniors explorers with a higher market cap out there and they have not found anything yet, but here we are with SVB who's found something of great value and still priced at rock bottom...
How would you evaluate SVB?
stockhouse.com
RE:RE:RE:Anyone here?
By Heywood_Silvers
July 22, 2020 - 01:46 PM
My very simple "back of the envelope" calculation would be this:
SVB's assets were around 1/3rd the size of what AZ Mining's (Wildcat Silver) project had. If you take the AZ buyout price of $4.65 USD divied by 3 that gives $1.55 a share. Take that at 0.3 and it yields about 50 cents a share.
Back in 2011 during the heights of the last bull market run, it was upwards of $1. If silver rips higher than $50, I think we can push $1 again on these shares. Base case scenario would be the 50 cents. So, my "safe estimate" range would be this is anywhere from a 4 bagger to a 9 bagger.
Silver/gold could (should?) really surprise this time around and don't be shocked if a 5 or 10 bagger ends up being more. Agree with the previous poster that if South 32 doesn't want to make the same mistakes they won't wait so long on this one this time around.
stockhouse.com
RE:RE:RE:RE:Anyone here?
By Wazup26
July 22, 2020 - 03:05 PM
Very good explanation. Thanks very much.
I wish we would get a few updates from SVB. It's been a while since we've had any kind of news...
stockhouse.com
RE:RE:RE:RE:RE:Anyone here?
By LondonInvest
July 23, 2020 - 02:29 AM
Hi I wanted to share some information with the board, particularly about why SVB has been quiet. Ever since the trade blockade in October 2019 SVB has been trying to end the situation using the court system. The good news is that they have won every case so far and only one appeal remains, so there should be full resolution soon and the blockade will stop.
SVB has had to be very careful with news and press releases as to not negatively affect outcome of the case against the blockade group. News flow will resume as soon as situation rectified.
Facts in the meantime that we know are from before blockade and recent 10Q filing:
SVB has 100+M oz Ag deposit
SVB has 4 billion tons Zn deposit
SVB NPV on this deposit at current Ag/Zn prices pre-tax is $640 million
SVB IRR on this deposit at current Ag/Zn prices pre-tax is 27%
SVB has several drill samples on site ready for assays, but could not access them for removal due to blockade. Soon as blockade loses apeal they will be able to assay these last samples.
SVB has received a payment in June 2020 from South32 to keep its option current.
stockhouse.com
RE:RE:RE:RE:RE:RE:Anyone here?
By Heywood_Silvers
July 23, 2020 - 11:59 AM
The wild card in play here is zinc. Back when AZ Mining was bought out, zinc prices were nearing record highs. There is 100+mm ounces of silver, but SVB only retains 30% ownership of that if the JV proceeds to full fruition. Hence, the zinc is what will really make or break this project.
SVB management was so high on zinc a few years ago they totally rebranded their whole approach and were marketing this as a dual silver-zinc play. I know most of us here aren't in it for the zinc, but it is what could really end up making or breaking the future prospects of the project. As I said in a prior post, I think we should expect around a 5 bagger for a base case, but if zinc catches fire then maybe we start talking 10 bagger.
stockhouse.com
RE:RE:RE:RE:RE:RE:RE:Anyone here?
By Wazup26
July 23, 2020 - 05:21 PM
I really like SVB silver & zinc deposit, but the blockade + no news= uncertainty for new potential investors.
I bought a few shares for the long run, but I wish we could get some form of confirmation that this project is alive and generates interest out there.
I would say I'm cautiously optimistic on our chance to see a 5 to 10 bagger as well!
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