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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: marcos who wrote (55622)	1/21/2008 3:44:35 AM
From: E. Charters	Read Replies (1) \| Respond to of 78421

If it cost 150 mill to build a float silver and znik and ship and it costs 450 to build a lectrolitic znik plant, and the market was quivering like a soldier with the runs on a latrine log at 10 below, and the prix of znik was rolling downhill like a snowman who has fallen off a mountain in the fog, which plant would you rather finance? jes askin. Speshilly if the silver is your main greased hog to catch and it does not require lectrolotics. Thanks to Dennis Miller for the inspirashun for the analogies, and Koan for the speling lesins. Thanks for the inspirational info and staying positive. I have not followed MMG that much. Frankly whilst I see its silver advantage, if you crunch the numbers on where it can go base metal wise with the price of zink in backwards territory, its present price and the cost of the plant, it is not that inspiring a story. It is discounted heavily. If they have to finance on zinc alone, electrolytic they have to issue between 80 million and 130 million in shares, unless they go to the bank. And if they go to the bank they may get an argument about zink demand from people who so adeptly predicted housing and money demand. Actually I am willing to bet the Swiss/Germans/Chinese have little fony paper exposure, but they are peripherally impacted nontheless. In that business when one bank farts a dozen keel over from asphyx. With that kind of paper issuance, what they can make from zinc alone if they go float-ship with the present uncertain market is not that inspiring. Figure the potential profits from either float ship or larger money and lectrolitics, and the price stays the same. More money, from electric methods, but have to spend more.* And to get the higher amount to make more money on throughput, is possible, but it is more dicey simply because more money is at risk. They are still 4 to 5 bucks after they get the plant built. 200,000 tons of zinc/year is ~70 million after taxes right now. 150 million shares out and that is what they are worth. 4 bucks at what most miners sell at 8X P/E. Ok maybe a bit more. * all told the equation is still better to spend more, as there is more price insulation. But the money might be nervous just because it is lots of money and an untested company. These people aren't Rio Tinto. Short answer is to get the VC people horny for stage II they need/could use the silver. They know, you know it. Theoretical upside if zinc price/demand maintains is theoretical. I think they need a bull market. Not many jr. base metal producers enter the market place. I like their idea at 1.20 zinc. I like their idea with silver if they find 10 million tons of Ag. at 6 ounces that floats nicely. Is this possible? Well, stories are stories. They do have some whopping intersects. It is in shooting distance. This one we have to wait up for and let granny tell us. The silver could change them to a 6 dollar stock. The polymet manto stuff is an icing situation, but don't forget that is a complex mill. EC<:-}