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Stillwater Mining Company Message Board

  • tantris003 tantris003 Sep 21, 2011 5:51 PM Flag

    Does anyone like this stock?

    With f p/e at less than 6, QT growth so high for this industry doesn't anyone like this stock at this price? With over 12% of shares outstanding short seems to me that we will have an upside explosion when we hit whatever the cover price is to the tune of many points on just buys to cover. Copper is a very good long term investment and it is smart in the long run to diversify exposure and I don't see why now is a poor entry point into that market. I know that it clearly took the the stock price down but isn't the best time to buy copper when it is out of favor? If you disagree please post what price you all think the shorts cover and what price you all think SWC looks like a buy to you.


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    • SWC is too close to 10, for sure shorts will push it below 10 for more panic dumping. Low 9s would be a good entry buy-in from my perspective, as long as copper shows some signs of stabilizing, and the precious metals cooperate.

    • I used to like this stock. I owned it because they were a pure platinum and palladium producer.

      When they announced the Peregrine deal, I bailed. The deal will bring in alot of base metal (copper) and some gold.

      Base metal producers have a lower P/E than do precious metal producers.

      Now with the SWC stock price plunge, its' market cap is about $1.1 billion. Peregrine will need about $2 to $2.5 billion in capex to bring it into production.

      Frankly SWC management bit off more than they could handle.

      I think investors realize that most of the $2 to $2.5 billion needed will be raised by issuing more stock, thus diluting a pure play into a mixed/heavy base metal play....

      If you want to invest in a base metal play, there are many other better, well managed miners to invest in...

      • 1 Reply to lieandwin
      • Right...but the 2-2.5 billion to develop this project is not a current liability. They simply bought a copper bearing property. They will explore it and the research shows that they bought it at a good price. "early" If Copper prices go up in the next few years they will literally be sitting on a gold mine.

        HAI: Would are the capital expenditures to mine that property?

        Wing: First of all, the acquisition cost is $450 million. Then, on top of that, it would be somewhere between $2 billion and $2.5 billion to develop it. We’re still probably five years from the time when that financing would be necessary. Our thought is that we should go ahead and define what’s on the property. It’ll cost us about $25 million a year of exploration for the next three years or so to finish defining what’s there. Then we will do a feasibility study and then the full value of the property should be evident. At that point, we believe we could potentially bring in a partner or other forms of financing to be able to cover it.

        Because we’re at the moment primarily platinum and palladium, that also gives us an opportunity to decide how much exposure we want to the copper or if we want to bring in partners that would perhaps take some of the copper in return for a portion of the project.

    • I WILL COVER AT $7

    • who knows why the big dump-off?? It's a solid company and not a crap shoot!

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