This is why 12$ by Year end is very doable
12-15$ in 6 months for sure
and if Silver climbs to where it should be???
We can easily see 20+ very soon
Its a matter of Math and nothing else.
SLW isnt overvalued until we hit around 30
Last Friday I posted why I thought that a buyout would be coming. The INT's that bought shares have a strong history of investing in companies that are taken over. This Monday, the company adopted a poison pill - shareholders bill of rights. I don't think a bid will surface until the stock price is above 7. Silver would be higher at that time. I am looking for stronger purchases by INT's, A weaker dollar, more US debt that will quickly lead us to 7 a share. Then look for an offer of 16.00, by spring. Keep your core position, this is really to take off soon, with more INT's purchases.
You raise a good point about the refining process, but your overlooking the fact that as we speak and for the last few decades two out of the three mines that produce nearly 80% of the revenue for the company have been mining and finding product.
ALSO: don't fool yourself into thinking that SLW won't farm some of the refining process out or possibly subcontract it out to other companies for a discounted price per ounce thus putting money directly into the corporation.
Do you really think they haven't thought of this??? HELLO!!
Guy's, I'm long, but please, you are counting chickens before they've hatched. Between the cup and the lip many a drop will slip.
The ore is indeed "in the ground" and it will likely take a few decades to get it out, refined and resold. It will happen but it will take time. There are risks and lot's of good things and bad things can happen between now and the time the Silver is sold as bullion.
It is NOT unreasonable that these "risks" should depress the share price today. Especially because of the outstanding debt. As long as SLW management fixates on debt retirement, the company will do just fine.
One concern -- a future one to be sure -- at some point SLW will want to increase its interest in the Pensaquito project from the current 25%. Undoubtedly, SLW could get the financing (with its interest charges) to do so at an agreeable up-front capital cost. Again, let cash flow reduce the debt for say two years, allow organic growth to keep things moving nicely along and in two years, this subject can be visited. I DO worry that management has been a bit to aggressive buying into Junior exploration company's and the like. Just pare down the debt and I'll be a long-term shareholder. (Like many others here.)