Book value means nothing. SSRI said in the 2012 annual report that their costs including all development is $27 an ounce to produce silver. They are not able to make any money and are actually negative on every ounce of silver they are selling at this time. Even if silver gets back to $30 an ounce they are hardly making any money at SSRI.
Even at $30 an ounce silver they are only making 10% profit on each ounce of silver they sell.
In my opinion the costs of mining are going to increase as governments look for more sources of revenue. Also mining is dangerous so insurance and medical costs to these companies is going to increase.
I do not see SSRI being profitable during the next year.
Because I don't need to pay commission to trade, I buy little bit at a time. SSRI does look cheap. I am waiting silver to go back to $25 and I think there are more buyers will join in. The only problem is we don't know when. I think holding long term looks good because there is always inflation and demand of silver for industry use.
The share price looks cheap from the high but this company said in their annual report they need $27 an ounce to break even. Even if they get $30 an ounce they only make 10% on their costs.
Mining is going to get more expensive over the future years as governments are looking for more revenue. Insurance and medical care for this industry type is expensive and only going to get more expensive.