I that a joke?
Case Berardi overview:
1) ASIC around $1350-1400. They are losing money over there as we speak: A few millions every day.
2) Located in Quebec. Their government openly declared they want to stop all mining activities in the province by 2017.
3) The price was not that good either. At that price HL could buy a development stage project with much better upside.
Obviously, many posters on this board are HL employees. Bee works at HL PR department, and she was recently busy working on new PP presentation for Baker.
SS works in exploration department, as weather subsided he went back to drilling at bulldog project.
When silver and gold goes up smart knowledgeable investors buying: CDE, AG, PAAS, EXK. Why buy HL?
Market is irrational - which is good as it lets make gains from irrationality.
The other reason: WS Banksters (whom Baker rewards with hedges, fees etc) like to pimp HL stock to the investors.
Lot of pumping to retires like: Hohoho - HL is US base producer; Hohoho - this is silver. Hohhohoh this 120 year old company.
But nobody would tell retirees that HL could not turn in any profit for many years.
Baker goes to all those conference and he never even mentions anything about net income and analysts never ask - they know the game.
And those who are betting on zinc shortage: Baker already hedged 80% of base metal production at lower prices so as to allow his bankster boddies to capture the upside in zinc prices with shareholders taking all the risk on the down side.
I am still impressed how come Baker did not hedge silver at the bottom when it was at $19. He probably was on vacation in the summer when this happened and failed to capture the bottom.
This is correct that HL revenue is 1/3 Silver, 1/3 Gold and 1/3 Zinc and lead.
But we should look at the profits and cash flows. HL doesn't have any profits because base metal prices are too low. With zinc and lead prices below $1 per lbs HL business is un viable.
Proof you ask:
1) Do your DD look at silver cash cost to GAAP cost conversion
2) HL CFO in CC call two quarters ago admitted just that: for each silver once they record $25-27 by porduct credit. That means if you sell silver below $30 revenue from zinc and lead exceeds revenue from silver.
Which means this whole silver is unprofitable and "low cost producer" is just a myth to suck in investors like drawn, t-cark and Korian
3) Look at results for Q4 2012: Silver realized sale price was whopping $35 and net income zero??? Because base metals were too low.
4) And everybody know that Casa Berardi AISC is around $1350-1400. Their loosing money over there as we speak.
Now tell me where am I incorrect in my analysis?
Why do you come on HL board and talk about silver? Where do you see silver here? Go to CDE or AG.
HL story is all about BASE METALS: zinc and lead this what drives HL profits. And if economy is falling short nobody is going to buy all that zinc HL mines. We are screwed again.
Nobody even talks about sanctions anymore. What sanctions:
Russia is the fastest growing market for Ford, MCD, YUM, Coke, Pep, CAT, GE, Deer - all of them invested heavily in Russia. How would they let any one to sanction their business?
ExonMobil - is deep in Russia. Has huge deals going on in Siberia. Exon will crush any politician who interferes with business.
If you look at worldwide picture, export coal prices have no where to go but up. China builds new coal fired power plant every week. 3B people don't have adequate access to electricity.
Where do you think it energy will come? LNG after liquification and transplantation will be too expensive.
Those who invested in coal will have lights - others will dwell in darkness.
You can't just increase mine capacity by 7.5% this year. Imho they are counting on supply coming it from Mongolia. But either way growing demand in China will push prices worldwide.
Why wait? Buy CDE and AG now is the time the train is leaving the station as we speak chu.chu.chu. In fact the best time was last summer when silver dipped below $19.
HL is arratic if Ag goes to $25 HL might fall below $3 gain.
Good post. Many investors have their political agenda blurring their minds.
No surprise here. HL ran up on better "bogus" economic data released yesterday. HL is one of the largest zinc and lead miners in the USA. So whenever HFT see better fundamentals for base metals HL shares get pushed up higher.
Plus HL has very strong reverse leverage to silver. This is how Baker structured the operations.
After NSA scandal and tapping phones of Brazil, Spain and German leaders.
Indian politician cavity search
Letting down Israel Zionists
War games with Japan in China Sea
Do you thing anyone will support US proposals? This is laughable.
Putin blinks - US wins..do you really believe all that msm propaganda?
Russians took over Crimea and now sitting around smiling as they don't have to make lease payments for the Navy bases anymore, and everything was done without a single shot fired.
Do you think Russians are that dumb and evil as they show them on CNN? Everything they do has very clear business sense. Invading Ukraine will doesn't make any economic sense, they might raid it and drop a few bombs but won't occupy. Nobody in Russian wants to feed 46million.
West and East Ukrainians are at each others throats - yes. But both sides are very clear that the country should stay independent and whole. If someone will try to invade them or partition the country there will be very strong resistance.
Putin was very clear from the very beginning he will only interfere if Russian speaking population is threatened (which they were) or someone tries to break up the country. But they will not occupy for long term.
This is why Putin won't start any full out war unless forced too. There is just to much staff going on in Russian back yard. Caucasus republics, China, Japan etc.
Kerry, McCain and Polish pres are the only ones who want the war.
NSA scandal (Tapping Brazil, Spain, German leaders phones)
F bomb on EU
Indian Politician deep cavity search
War exercises in China sea
Who will support trade sanctions Kerry is taking about: Canada and Saudi Arabia?