$400 million valuation buys you 1.1 billion oz of measured and indicated reserves of silver. It may be even higher since reserves at Pittarilla have been upgraded recently. In 2012 SSRI management said the valuation at $15.50 was compelling. Must be even more compelling now. I am new to silver stocks. Trying to learn fast so as to take advantage of the sell-off. Am I right about about the valuation? This company doesn't produce much as of now. Is it relatively safe to invest based on reserve estimates (measured and indicated)?
The problem has been the mining companies using shareholders as piggybanks and destroying any investor that touches them. Does not matter what you have in the ground if you are going to destroy anyone who touches you. Small companies do not have the money necessary to build billion dollar mines! But some of these management act like cowboys and playing king of the hill. Does not matter which company. The companies that know their limitations are rare in this field. Thats cause the people that work in this field are the bottom of the barrel. Its very very easy for those banks and hedge funds to clean the investors clocks cause the company has such poor quality people running them. Things might change in the future when a lot more money comes into the market and the shares can not be manipulated like before but since 2005 the freebooting banks and hedge funds are the ones whos been making the money. What I mean by freebooting is giving money to the company for things like subordinate debt that can or maybe cant be converted to shares. So you can always short and lock in a profit and collect free intrest on the money. Called FREE money... Now if the stock drops a lot you cover for a huge profit and do it over and over and over.. Mostly the company just goes BK like SIL.. Look at JAG or GSS or CDE or others who built world class billion dollar mines but trade for a few hundred mil. Investors havent made a dime in these companies.