I've been asking myself the same question... However all of the investors were sold on how much they will make... years down the future by media, investment manager, and others who already made a bundle when price of this company is in $4 range less than 12 months ago.
You may want to check out the contracts on the mines. Especially on those newly purchased Silverstone properties. They look very shady. The 3 mines with Silverstone, mostly have LOM around 7 ~ 8 years. All 3 mines has their peak production around the time 2013... which is where SLW based off their highest growth. But then immediately after 2013, it drop off production dramatically.
You may also want to keep in mind that with silver price around $17 ~ $18 range, mines that can produce silver probably won't grant another contract to sell their silver at $3.90 or spot price which ever is lower.
You should do your own DD before investing in this company. But it is not hard to figure out a company purchase fixed price silver. Basically take their price and subtracted from silver price today. The difference, minus expenses, is what they make. For a company like this, expenses should be very small.
The stock market is forwarding looking about 6 months (imho) ... they should be making boatloads of money off their cheap(precious) silver for a long time after that. Dont fight the trend. P.M.s are the story right now ... I may even bail in the 20's but that's alot more profits down the road.
SLW PE is high because they took a big writedown on stocks of other mining companies that they owned after the huge price dip in Nov. 2008. I would hazard a guess that the forward (2010) PE is around 20 at current stock price.