Within the next several months, the production will go from 1800 tons to 3000 tons at flagship mine S.Jose
This will result in a major increase in production of gold and silver between now and year end.
In the meantime, between now and year end they will commence the building of the new Goldrock Mine in Argentina. That mine will be ready by year end 2017, result in an even greater percentage jump in production, up to 27 million AG eq. ounces, as now the company is under 10 million...so we can see how huge the move will be in production, right in the sweet spot of this bull.
Then, the company is working on a homegrown and high grade rich discovery just a mile and a half from its flagship SJose mine in mexico. They have been at this discovery for 3 years now, and so far the company seems to suggest, they may be on to something that is gigantic and very high grade. I would simply refer to the company's updated presentation, at the end, for the grades of this discovery. The neat thing is that as the Goldrock mine is finished being built, come first quarter 2018 they hopefully will commence the next mine, its homegrown discovery at Trinidad, the extension, etc.....Hoping this is a massive mine and there are some definite hints the company is extremely excited about their homegrown discovery.
And here is the best part of all, the company is sitting on over 100 million in cash and prices are rising and all of this can probably be internally financed, which is incredible. By 2019, the company could be sitting on 4 fully producing mines, with the last one, reflecting their new discovery in mexicao they have been drilling out for 3 years, being a district scale enterprise. As prices rise in this gold and silver mine, fortuna's share price should go crazy to the upside.
When the mine opens its doors in roughly 16 or so months, with POG up another 250 bucks (hopefully), people will say, how unwise was Goldrock, to get rid of their jewel, which is now actually just into production, at the start of a gold bull market, when the POG was 350 bucks lower. and now the thing is cranking out gold every single day, and all of this will fall right to FSM's bottom line for the next 12 years, as gold ascends to the heavens and beyond.
.......It is like giving away your gorgeous daughter at the age of 20, at the height of your beauty, to some clever handsome slickster, when he himself ALSO HAPPENS TO KNOW, that she will be a licensed brain surgeon in just 18 months. so he gets all the beauty and the earning power of the graduating medical school student, without the debt she has humped all those years....but with her active earnings, that she has worked so many years to finally get.
they added 1.5 million ounces, possibly more, together with another 2 million inferred, with a deposit that is totally shovel ready. FULLY PERMITTED, an excellent province. These deposits take many many years to discover and develop and get full permits for. 5 to 10, if ever. This company has been looking for several years for a substantial purchase, and getting something like this, in the early stages of a gold bull, is a master stroke and really a product of their hard work and talent. The Balance sheet is pristine, no debt and the mine will be fully paid for out of earnings, no DILUTION.... One way to look at it is as if Goldrock was part of their organization throughout the entire bear market, and no doubt they had their eye on it for years, as they have indicated in the conference call. I also love the 15% purchase of the portugese company. I wish they had bought that one as well. check out the exploration results. In any event, near time the Goldrock purchase looks terrific with Gold up almost 80 bucks since this purchase. The premium they paid now looks very minimal with the rising POG, and as gold continues to rise over the next 16 months, this will look like a master stroke. I wish they would buy another shovel ready deposit ASAP, but the problem is, there are very few of them in the world. Now is the time to lock so
April avg price: 16.11
May avg price: 16.84
source: pm bull...................DOT.........................com
They do not publish a figure so far for the June, and without going into calculations, it is about what May was, but looking at the trend, it is clearly rising, so we may get something around avg 17.15 or so.....
Conclusion: avg price for this quarter should be around 16.70 give or take.
I wish Yahoo could do something about the constant pumping of these 2-bit penny stock sites on virtually every message board. They've really ruined the boards in their cheap attempts to get free advertising.
I am a new owner. I viewed the goldrock purchase as being very positive, and doubly so in a rising gold and silver environment.
This stock now has lots of catching up to do. love your math, btw...
A quick read of the Press release and I see: Goldrock has 26.5 Moz silver proven, $10/oz extraction cost, $15/oz assumed selling price, and the deal cost FSM $129M. (All Canadian$)
26.5M x (15-10) = 132.5M. A Break-Even deal, unless silver sells for more or less than $15. I call it a real good bet. FSM to double within a year.
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Why are you jabbering about the stock and not mentioning UltimateStockAlerts like is in every 3rd post? Of course I am kidding. It is enjoyablel to see people talking about silver. $20 silver would probably make me sell (at least some). If silver were somehow to get above $50 again for "an exetended period of time" (that is undefinable "Yellen" Speak") you might see a lot of silver come into the market from India.
The silver that came from the Americas in the 1500's, pass through the hands of Europe like water because the Indians did not want any European goods (like fur coats) they just wanted silver and gold, which drove the governments crazy, but silver is all they really had to bargin for all those spices, silk and other "must have" knick knacks from the Indian Sub-Continent.
Very good call Kinks. I believe we will see average price for silver higher than $16.50 for Q2, as April was between $15.00 and $17.50, May has been consistently above $17.00 so far, and June could approach $20.00. The bifurcated paper physical silver market seems to be unraveling and should we get honest price discovery, then silver may be priced considerably higher. There is a lot of internet press suggesting this potential.
Well, I was right about the $0.02 eps for the quarter. I'll have to see if the $0.12 eps for 2nd q comes out around August 10. Not much to do till then other than monitor the price of silver.
My guess is that FSM will show positive eps for 1st q next Monday (my guess is 0.02/share) based on a lower all in cash cost plus $14.80 average silver price for 1st q. If average silver price in 2nd quarter is $16.50 which is what it is today then you're looking at $0.12 eps for 2nd quarter. Therefore, if PE stays near 80 then price in August is a double from today. If actual silver price can move higher thru all of 2016 then P could be over $30 this time next year.
FSM has the lowest silver production costs out there.... very conservative play. It will be interesting to see what the numbers are next Monday. Conference call on Tuesday... why aren't there more followers here?
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