Extract from this evening's edition. GLTA
RD: So based on all this, where should investors look?
What companies do you like at this time?
We note Nicholas’s favorites continue to target many from
the past as management progresses as hoped on most,
but he also gives us comments on a multitude of others,
call for specifics.
SilverCrest Mines reported an updated resource estimate for
its 100%-owned La Joya project in Durango, Mexico. More
importantly, SVL outlined a higher grade starter pit for the
La Joya project. SilverCrest also reported an initial resource
estimate for the Contact Zone at La Joya (a tungsten/
molybdenum deposit) that lies below the AgCu Rich
What does it mean, Nicholas gives us a summary. “We
have adjusted our valuation to reflect the updated resource
estimate for La Joya. We ascribe an in situ value of
US$1.50 per silver-equivalent ounce for the higher grade
resource with an additional value of US$0.50 per silverequivalent
ounce for the lower grade resources. Our valuation
of the La Joya project has increased to US$169 million,
up from US$152 million previously. The net impact is
an increase in our peak silver price estimate of NAVPS
(5%, US$35/oz Ag) to $5.92, up from US$5.76 previously.
We continue to value the shares of SilverCrest based on a
0.75x multiple to our peak silver price estimate of NAVPS.
We note that SilverCrest is currently trading at 3.1x 2014E
CFPS and 0.49x P/NAV (5%, spot) versus the junior producer
average of 7.0x 2014E CFPS and 0.65x P/NAV (5%,
spot).” Bottom-line? Target goes up.