Expecting that the company will announce Q4 revenues and average selling price by Jan10th. If the company meets projected estimates I'm expecting that they will have produced a record 1.96 SEO for the quarter. Should they have sold all production at an average price of $32.50 revenues will be a record $63.7 million. If they sold one half of thier inventory carried over from Q3 revenues will have increased an additional $19.1 million. Admittedly, the average selling price of $28.72 for Q3 was a disappointment for some, myself included. $32.50 appears to be a reasonble expectation for Q4. As far as Q4 earnings go, while I'm expecting a good number, we'll have to wait till March for the companies announcement.
Additionally, toward the end of January the company should be coming out with projected 2013 production numbers. I'm expecting a projection of 8-8.5 million SEO for the year. When the plant at El Cubo is completed in May I would not be surprised if the company revised 2013 production to 9-9plus million SEO for the year. Also, we should be hearing news and numbers on expanded resources and reserves.
The companies fantastic growth has gone somewath unnoticed BUT we are no longer a small producer and this will not go unnoticed forever. King- yes I know, this is all public info and known by everyone BUT at some point in time the cream will rise to the top and I'm old enough to rember licking the cream off the container lid.
Bladerobo- You sold 200 covered calls, $10 strike for $.32, I'm trying to purchase them at $.30. You may feel some pain when and if they get called from you. Way too many good things going on in this company to be selling calls. While I'm expecting a rise in PM's this company should do well at $30 silver and $1650 gold because of compounding 35-40 per cent production growth. Should silver and gold trade up to $40-50 silver and $1900-2000 gold, . it's nothing but good times for we longs. Remember, we traded as high as $12.70 when silver traded slightly over $40 during Sept 2011. We're going to be producing almost twice as much SEO next year. Not too shabby.
Sentiment: Strong Buy
I also sold 250 contracts(Dec 12 $10) at .22. I am 65 years old and hope we are above 10 in May 13. I was just so disappointed with the 3rd quarter. Will ElCubo be done in May. Will it cost much more than planned. I hope we are at 15 in May. I will feel like I missed out but i will be happy to have my money. Sonya hasn't posted in awhile. Questioned if Brad Cook sold some silver at a good price. We will see.
Van Eck is building a larger position. They hate cash burn. Their theme is low cost versus growth. I'm sure that they looked at the last three mineral studies and added that to historial data and ongoing operations. Most funds and investors never look at historial data and that is a big mistake. I have researched historial data and that's why I own this stock. The overall theme is large rich mineral land holdings. Want to be rich, then hold this stock for a few years.
I like your post. I think that the future of EXK and the price of silver will be determined by many things, all being good. I am also looking at possible longer term results of EXK beginning in 2013 and continuing over a ten-year period.
EXK has strong internal controls in place, such as proper insurance. Their insurance is not as expensive as other miners because of levels of risk and hazards. Other pluses for EXK include that they have no risk in obtaining permits, licenses and clear titles. An example of this would be the Milache property in Durango state. They were given rights to extend mineralization of high grade exploration with Mexico's blessing into the Santa Cruz. Presently there they have 25 drills and ramp sites in an area of 600 square metres.
They have a strong reliability of calculation of mineral reserves, resources and precious metal recoveries. We will see fluctuations in the price of gold and silver, the Mexican peso, the U.S. and Canadian dollar, but with regard to the qualities and quantities of mineral resources and properties - EXK should be able to rise above any micro economic situations and fluctuations in the price of silver. This is what makes EXK a top class investment.
Supporting future silver prices, in non macro/micro world economic situations, I look for silver to hold value. Last year India imported 4,000 tons and has already consumed 1,500 tons of that within an industry. This should continue along with other Pacific rim countries as well as China. But regardless of currency movements and world directional desires for silver, silver should still increase over the coming years in price.
I am looking forward to FDA approval of silver and anti-bacterial properties. Silver then would be used throughout the food industry as a packing material. It would also be used for antimicrobial garments, including bandages. This would increase the use of silver by about 25% (well over 250 million ounces) and may lead in future years by as much as 30 - 40%. Another increasing use of silver will be in fuel cells plating and bond wires. Silver coins are a grade of 99.9% pure and are now permitted in IRA accounts - that will increase.
We know what kind of quality of minerals are attainable in the belts of land EXK owns, and there are many more explorations to be done.
This is a great message thread! Happy New Year to posters on this thread...as well as all other silver investors.
As for the direction of EXK, I agree with all the enlightening comments in this thread on the positive fundamentals of this company. As for the price of silver, I suspect the patchwork resolution dealing with the "fiscal cliff" will be greatly overshadowed by the debt ceiling that must be resolved before April. I would be astounded, as well as extremely disappointed, if the D.C. gang eliminates the current constitutional requirement of congressional approval in raising debt ceilings and simply hands this financial lever over to the White house. Nevertheless, such a move would be tremendous for silver prices and long term disastrous for the fiat dollar. With this looming trouble hitting our country before the end of April, I'd rather be a holder of May EXK calls rather than a seller. However, selling covered calls is always an excellent investment tool for making money. GLTA
Silver is up big today so far, over three percent. With the US gov't hitting its spending limit, or debt limit, the US Treasury needs to resort to extraordinary measures to fund things for a month or two. So that means they can't keep a lid on PM prices like before. The last time we were in this situation gold prices took off, we're seeing it play out that way again.
Don't think EXK will be bought out, but who knows. Gold producers don't like silver. But oh well, I'm happy with Bradford Cooke and his plans to grow this company into a major silver producer.
Sentiment: Strong Buy