Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Silver Standard Resources Inc. NSC: SSRI CVE: SSO -- Ignore unavailable to you. Want to Upgrade?

To: Outer-limits who wrote (112)	3/19/2001 7:38:29 AM
From: Raja	Read Replies (2) \| Respond to of 165

"Response from SSRI." By: PHILLYDON $ Reply To: None Sunday, 18 Mar 2001 at 11:57 AM EST Post # of 176 Response from SSRI. Paul LaFontaine of IR at SSRI kindly and thoroughly responded to my prior question concerning the relationship between an increase in the price of silver and in SSRI as follows: Our projects are economic at silver prices ranging from $6 to $8. That means that once silver prices reach, say $6, we will initiate a feasibility study at Manantial Espejo, our project in southern Argentina, which is likely the first to be put into production. Since much of the technical work is ongoing, the lag time between increased silver prices and start of production would be approximately 18 months. Having said that, there is nothing like money to expedite any human endeavor, and the higher silver prices go, the greater the amount of money we could raise, either through equity or bank debt, to put a project into production. Bowdens and Shafter would likely be 18 months as well. Candelaria won't be economic (as defined by in internal rate of return of at least 20%) until silver reaches $8. So your sense of lag time (mine was four years) is much too long for Manantial, Bowdens and Shafter. As to the question of how long it would take to respond to higher silver prices, I suggest that you compare a two year chart of gold and/or silver to SSRI and note immediate volume and price increase during any precious metal move. SSRI appears to be widely held by knowledgeable commodities traders and is very liquid compared to our peers. SSRI trades like an unexpiring call option on silver, and so with higher silver prices, together with our leverage to silver dominant projects, the shares will trade higher immediately. The distinction that might be made between silver producers (like Pan American, Couer d'Alene, Hecla, and Sunshine) and developers like SSRI is that the former companies have higher institutional interest, higher debt, and are depleting their resources at low prices. SSRI's shares are not an institutional favorite, but enjoy the attention of 10,000 committed shareholders who presumably would be delighted to have institutions buy some of their stock as silver fundamentals assert themselves. THANK YOU PAUL. WOULD APPRECIATE BOARD COMMENTS. ragingbull.lycos.com