Can we get double of this next year? At $0.60 cents 2015 earnings..say...TC is $9 stock today.
Sentiment: Strong Buy
How much did he want to pay? $1.40 pps?. Well he can buy US Silver now for, say $80 million (current market cap is $40M).
Organic growth? Let me tell you what kind of growth we have:
Baker is sinking the shaft in LF. It will cost $215M and will take two more years. After Baker sunk the shaft he is hoping to add 2M oz of production. Now whip out your spreadsheet and calculate if it worth it to spend $215M to increase production by 2M oz.
What is the pay back time? IRR? Don't forget the mining costs will be higher over there as it is deeper.
Do we have mill capacity to mill the additional ore?
And after that think that with 215M he spent on sinking the shaft we could buy ourselves something like Silverbull (svbl) or he could just buy the shares back when they were below $3.
There are huge stock piles of silver kept in SLV and many other silver ETFs and funds. When necessary market participants (JPM and co) will re hypothicate and lease it into the market to relieve any shortages. They did this with Gold last year, and I don't see any reason why they won't do it with silver.
HL shareholders - Brace yourselves. "All cash" Mark Faber was right again.
Everyone I know were buying when HL was fairly priced under $3. Who is buying right now I have know idea, probably clubfoot and SXS?
The stock was beaten down into the pulp and is priced as garbage.
Meanwhile, ACI has the largest exposure to US thermal coal prices and thermal coal prices are recovering. When coal prices recover and ACI turn in profit the stock will rise muliple times from this levels.
Reasons why coal prices will recover soon:
1) All US miners are cutting productions. Over 2,000 coal mines were closed already. They will keep closing mines until coal market balances out at where coal miners can make a profit.
2) Gas prices are unsustainably low. Many gas drilling companies don't make any profit from gas and will have to cut production.
3) Starting from 2017 many LNG facilities will come on line and it will push gas prices even higher.
However you look at it coal will play a major role in power generation and if coal miners will need to be paid to get the coal from the ground, otherwise lights out.
Sentiment: Strong Buy
There was a lot of massive pumping recently and the stock is moving higher. Expect dump to start soon.
Disclosure: Long SVBL for the longer term. Not paying attention to silly pump and dumps.
Sentiment: Strong Buy
So clubfoot lost all his savings and now lives with his Mom and lying to her about all the stocks they owe. This very pitiful.
50% of world silver demand comes from industrial uses and we have:
1) Sales of electronics falling worlwide - people don't buy as many phones and TVs as few yeas ago
2) Solar panel installation falling behind projections. Still growing but much slower than expected.
3) At the same time: Miners are ramping up production like there is no tomorrow. New mines being developed everywhere - pure silver and gold, copper with by product silver. Production is GROWING BIG.
4) Investment silver demand slowing. People finally realize - that silver is not money, it was used as money until the new world with abundant supplies was discovered. Since 16th century - only gold is money.
Rick Rule agrees with that: He said he did not see that type of capitulation as what you usually see at the bottom of commodity cycle.
Cramer agrees too: He said: You buy PM as protection from monetary collapse. But is silver is 50% industrial demand - there will be no protection and thus no value in silver.
Look at the facts and not at what pimps tell you.
Larry for the record I don't short silver or HL. Silver is a devils metal and will burn you if you short it. But my statement is correct: silver is not going anywhere without gold and gold prices are managed by the Fed.
First of all all the big "smart" money are short silver. Secondly silver price forecasts don't matter - the price will be what the Fed tell it should be.
Now see what is is happening with TC today. And is just the beginning. TC is going to $9 pps in less than a year.
Someone mentioned here that HL made some very wise moves in recent years. Let me make it clear - there was nothing wise, all desperation. HL has a reputation of the worst mining company for a reason; here are just some of them:
1) LF mine was run down and suffered from chronic underinvestment for years, as a result people died over there and the state (OSHA and MUSHA) had to move and shut the mine down for the whole year.
2) Baker works for his bankster buddies not the shareholders. When his buddies at Aurizon Mining needed help he happily agreed to play a white knight with shareholders' cash and bought Casa Berardi mine.
Management could not provide any plausible reason why they bought Casa Berardi. The only reason Baker come with was "our friends work at Casa Berardi and we know them since like 2006, so we decided to buy their mine to save them from a hostile takeover"
And all the analysts (except for one who was the first and the last time on the call) did not even question this logic - like this is just fine to go buy a mine from your friends when you have so many better deals around.
I even think HL could try to buy US Silver again - at least over there you can see clear synergies due to the location.
And with Casa Beradi - what? Baker is learning French now to understand what they are even talking about over there.
At recent CC - an investor asked why cash costs went up in Casa Berardi? Management did even know what he was asking about.
The pump is over. Stock will get sold to below $3 again very soon. Maybe not this week but we will definitely see HL falling below $3 one more time this summer.