The companys principal projects include the Pirquitas Mine located in the province of Jujuy in northern Argentina; the San Luis gold-silver project located in central Peru; the Pitarrilla and San Agustin projects located in Durango State, Mexico; and the Diablillos gold-silver project located to the southwest of Salta on the altiplano of northern Argentina. As of December 31, 2011, its proven and probable silver mineral reserves were 189 million ounces.
189 million oz
at todays price of $32 USD
that's OVER 6 BILLION DOLLARS!!
pitarilla is interesting because it is a huge(!) resource--dwarfs everything else they have. cap ex isn't so bad at $750 million. great mine life. and $1.7 billion npv at $34 silver and 3.8 year payback (at that level). mexico is great for mining...
pitarilla illustrates, it seems to me, the problem / action we're seeing in silver miners. at current silver levels or just a little above, this look great. at $25 silver, it looks like a fool's errand. 10 year payback, low nov, etc. so it makes sense that mining stocks are drifting lower as the metal continues its excruciatingly long consolidation. a break up is necessary for the stocks to do anything.