I saw your message on another board, where you mentioned my alias. Probably, it was EXK.
Frankly speaking, your message created kind of confusion for me. On one hand, I appreciate your kind estimate of my humble contribution to message board discussions. On the other, the comparison you used in the same message is not something that I like :).
In any case, as you said, a lot of water gone under the bridge and past discussions are not very important anyway. Good luck with your present and future investments.
It is quite obvious that all silver mining stocks are struggling and so it is unlikely to be traced to words coming from particular CEO. The reason behind the struggles is well-known: multi-year bear market in silver and many other commodities. Most silver miners (with very rare exceptions) perform now with negative earnings and some of them with negative cash flow.
Also, it is not easy to reduce AISC now, after few years of bad market; companies already made all possible efforts to improve operating performance. Yes, it is still possible to close unprofitable mines completely, but that's not an easy decision and it doesn't come cheap; companies would still have to pay for temporary or permanent closures.
PAAS CEO has reason to sound, maybe, more confident than peers, CEOs of many other silver miners. This company has enough liquidity, including real cash, to continue functioning in relatively normal way, i.e. disregarding operating losses, for many years. I understand that it is not a big consolation for shareholders. It is more like an explanation of the situation.
It is a good question. Unfortunately, exact answer won't be known unless correction really comes in. In my opinion, the best-case scenario for silver stocks would be keeping ground, just because they are already beaten down. I don't think it is the likeliest scenario, because corrections usually hit the riskiest assets the most. PM equities are firmly in "risky assets" category now.
In my opinion, present PM investors should better hope on strong market rally that could raise all boats. In this case, the riskiest assets could jump up stronger than average. Again, I don't think it is the likeliest scenario.
Also, I would like to use this message to wish good luck to all present shareholders and, specially, to Agiraffe.
Silver stocks are not supported by fundamentals; better say, their fundamentals are so deep underwater that they have very little influence on share prices. It makes impossible to have any good predictions where prices go, where the bottom is and so on.
As long as bear market continues silver stocks will have many bounces and drops; mostly drops because the bear looks for victims. It is a chaotic process without any rationale available to pinpoint the turnaround point or something like this. Some day few guys will get lucky by buying exactly at the bottom; many other guys will lose more by trying their luck too early.
Probably, not. SLW legal/taxation problems come from streaming that, seemingly, Canadian tax authority finally decided to consider a pure financial enterprise. PAAS is not a streamer; it is an old school mining company.
Silver and gold can become "safe havens" in certain situation: extreme weakness in US economy. It is not the case now. PM mining stocks are not "safe havens", never been, nothing even close to that. They are risky assets, not suitable for long-term investment. They can be good, sometimes, for short or mid-term investments; but one should always remember about selling in time and assess whether downside protection exists. SLV or GLD cannot go to zero; many mining stocks can, especially in bear market.
Ok, I read last quartetly release again and didn't find any hints, not even talking about words, indicating that company spends more on Navidad. Also, if I remember correctly, Navidad is located in inhospitable, practically uninhabited area. Having local communities to decide project fate would be a very good change for PAAS; I am not sure whether it would be the case.
Company will spend more capex on Mexican expansion projects this year, Colorada and Dolores.
Few years ago this board was filled with messages explaining that Kirchner is very pro-mining and, for sure, will move Navidad forward.
Boris, you are not right! Hopefully, you know that these words are not related directly to you :)
It is not quite correct that Navidad didn't move forward because of Chubut governor. Actually yes, the governor proposed draconian royalties and taxes, and they didn't become law because Chubut legislature didn't want even this: it wanted to ban the project outright. This friendly disagreement between two anti-mining forces allowed PAAS to keep mining rights on Navidad, but actual chances to do mining there are low. If Scioli wins then forget about this. If Macri wins then it is not enough, you would have to hope that Chubut local elections also bring up better situation in the province, and, frankly, it doesn't look this way.
It should be said too, that PAAS cannot influence Argentinian elections.
Sure, it is not easy. Most silver miners lose money in big way at present silver prices. Buying a stock means rolling a dice. it has nothing to do with fundamentals. If Chinese crisis accelerates or Japan shows weakness, then buying commodities (any variety) is not a sound idea.
Gold and silver are contrarian indicators of US economy. As long as US economy moves forward, PM situation will likely stay bleak.
You know, ted, I suspect that your investment criteria is not the same as ones I use. That's all right, every person is unique.
However, it is hard for me to accept that "PAAS is a steal..." is kind of fact. Frankly speaking, I would not take it as "fact" for any stock :). Don't take it personal and hope you will make it. At the same time, in case your investment record is not too long, try to research fundamentals. If any "facts" exist in stock investment business, then they used to come from fundamental side, not from our attitudes and demeanor.
First of all, it was an option expiration day. Many stocks become volatile on such days.
Also, the stock rose strongly right before the drop; it happened also without news.
In general, PM stocks are trading vehicles now; they can move fast and strong without any news.
Also, do not consider it as offense, but using margins, especially in this sector now, is a very risky idea. Market is always unstable and this sector cannot rely on support from fundamentals.
I think it is a good deal and it creates interesting opportunity here. Certainly, XPL deserves consideration and analysis now. Zinc price may have some problems in short-term, because of Chinese slowdown. However, zinc cycle will likely enter boom period in mid-term.
Hopefully, this stock will see better times ahead. Gold part of the story was tough, but, it seems, this company went out better than many peers.