Silver Wheaton Corp. Message Board

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  • dibble_1 dibble_1 Jan 9, 2006 10:00 AM Flag

    La Copia silver flow ...

    Placer's share of La Coipa silver production is actually over 3 million ounces if I'm not mistaken. I really like your idea of using the most recent private placement to buy out Kinross and cutting a separate deal with pappa Goldcorp for the rest of the silver.

    http://placerdome.com/operations/chile/lacoipa.htm

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    • From the Q3/05 financials ...

      "At La Coipa, production for silver was 1.9 million and 0.5 million ounces for the nine and three months ended September 30, 2005, respectively, and 2.6 million and 1.2 million ounces for the comparative prior-year periods."

      The "1.9 million ounces" was for 9 months, not a full year, my bad ...

      So your "3 million" ounces is closer to reality ... and a possible "6 million ounces" if SLW can get the whole thing ...

      I'm not overly concerned at the loss there and the high cost as that may actually be deliberate ... as you are probably aware, in mining during the good times of high metal prices, the management will deliberately add lower grade ore into the mix at the same volume throughput ... this way, they can benefit from ore grades that are generally uneconomic to mine at lower metal prices ...

      Yes, it hurts immediate earnings and the stock price by processing lower overall head grades, but it can greatly extend mine life and better maximize the overall return on the deposit ...

      Good trading ...

      jc

      • 1 Reply to JohnnyCanuk
      • If SLW where to try to acquire the Kinross 50% that would put SLW in the mining biz. I do not get the impression that Telfer is looking to turn SLW into a miner. Just my opinion. SLW will skyrocket just with the holdings coming on board through the PDG deal. The Cash on hand will most likely be used for more sweetheart deals from Telfer GG rather than venturing out on their own. IMO

 
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23.30Jun 17 4:01 PMEDT