These are some Notes I saved today, just trying to get up to date. We are now in a most important TIME Zone I had mentioned. This past month+ I did notice the Relative Strength of Silver, and gave my thoughts on what might be the reason, aside from outight Demand. Please excuse the usual typos or edits my posts often have. I just copy and paste the notes I made, FWIW
This is what shows on the US Issue, SVLC
Silvercrest Mines Inc. (SVLC)
Top 5 Holders
SPROTT INC. 9,040,600
AGF INVESTMENTS INC. 3,417,142
WELLINGTON MANAGEMENT CO LLP 3,241,000
LIBRA ADVISORS LLC 2,541,941
JPMORGAN CHASE & CO 2,057,150
Read more: http://www.nasdaq.com/symbol/svlc/ownership-summary#ixzz2ClN8X0A3
PE (ttm): 14.32 < YAHOO
Forward P/E (fye Dec 31, 2013) = 11
Profit Margin (ttm): 37.89%
Operating Margin (ttm): 42.28%
[ a major concern (below) for us Shareholders, for both SilverCrest and Saandstorm Gold, Consolodation will happen. Let's just hope a Shareholder Rights is installed soon ]
Dale Mah, Dundee Securities (11/15/12)
we believe SilverCrest makes an excellent acquisition target for larger producers as it provides low-cost, silver-gold production with strong growth potential and is located in one of the world's best mining jurisdictions, Mexico. We maintain our Buy rating."
The 15 million-ounce satellite Cruz de Mayo silver deposit is the subject of a Pre-Feasibility study. The 100+ million-ounce silver equivalent La Joya project in Durango, Mexico is a silver-copper-gold bulk tonnage target being aggressively explored.
**based on $1,000/oz of gold and $18/oz of silver, cut-off grade is 1.77 gpt gold equivalent with applied metallurgical recoveries [ $1,000 Gold, $18 Silver ??? Come on now...so lets get out the calculators ]
Cruz de Mayo
The 100%-owned Cruz de Mayo Project consists of 18,000 hectares and is located near its Santa Elena Mine in Sonora, Mexico.
[[[ a silver/gold mine with a huge vein of super High-Grade Silver, ]]]
Previous drill program confirmed a near-surface broad silver zone averaging an estimated 20 metres in thickness with grades ranging from 30.0 gpt to 111.0 gpt silver with multiple, narrower higher grade zones ranging from 489.0 gpt to 967.0 gpt silver
( that's 16 to 31 Troy Ounces Silver per Ton )
La Joya – Potential large tonnage open pit Silver – Gold – Copper deposit
Silver equivalency includes silver, gold and copper and excludes lead, zinc, molybdenum and tungsten values.
Ag:Au is 50:1, Ag:Cu is 86:1, based on 5 year historic metal price trends of US$24/oz silver, US$1200/oz gold, US$3/lb copper. 100% metallurgical recovery is assumed.
( including what is being excluded in the drill assays can result in a Zero Cost to mine or better )
(another little known item)
Additional Targets Outside the Main Mineralized Trend
- Cerro Coloradito: This target lies approximately 1 kilometre west of the MMT. It has been drilled with 7 widely spaced drill holes, all of which contain significant values of Ag, Cu, Au, and Mo. Historic hole S-4 intercepted 76.2 metres from surface grading 24 gpt Ag, 0.15 gpt Au and 0.076 % molybdenum (Mo). Eight holes are proposed to further test this target by Q2 2012.
- Santo Nino: This target is approximately 1 kilometre east of the MMT and has been tested with 3 widely spaced drill holes. Historic hole S-1, intercepted 24.3 metres grading 11.8 gpt Ag, 0.45% Cu, and 0.12 gpt Au. Six holes are proposed to further test this target by Q2 2012.
- La Esperanza: This target is approximately 500 metres northeast of the MMT and contains an underground historic mine with geology and mineralization similar to the MMT. Five holes are proposed to further test this target by Q2 2012.
Management and Key Shareholders (fully diluted):
J. Scott Drever, President: 2,691,226
Barney Magnusson, CFO: 2,870,727
N. Eric Fier, COO: 2,457,027
Sprott Asset Management: 10.4%
Macquarie Bank (+ Warrants): 7%
Wellington Capital (Boston): 6%
P/E (TTM): 9.61
Sector (TTM) PE: 30.79
In January, 2012 SilverCrest decided to reinvest some profits from production into retiring all of their previous debt with Macquarie Bank ahead of schedule by 21 months. The Santa Elena mine’s future silver production is entirely un-hedged. The company has also reduced some of their gold hedge book ahead of schedule. 8,300 ounces of gold are hedged in 2012, and the remainder of their Macquarie Bank gold hedge is scheduled to end in 2014. (now that Hedge is gone)
The mine also has a 20% gold stream purchase agreement with Sandstorm Gold Ltd. from the construction financing, but silver production is not included.
[[[ as with All Mining Companies/Stocks its important to understand and keep in mind when evaluating, how Increases in Gold & Silver are Direct Top and Bottom Line additions. This means that, for example, should Gold Increase from $1,400 to $1,750 that 25% Increase is ALL Gravy. That's the beauty of Investing in a Miner. Cost of Production, unlike "Widgets", doesn't proportionally Increase with Additional Profit. Its like making a Cell Phone that sold for $200 and Demand allowed for an Increase in the Selling Price to $250. The 25% Increase is also ALL Gravy. In a Miners case the same Tonnage is worth more.
Also the Cut-Off Grade used is based on very Low Prices. When the Price Increases the Cut-Off Grade Lowers. We don't have a 43-101 based on a Lower Cut-Off Grade. We only know that it would show a lot more in Ounces of Au and Ag, and any other Metal/Mineral coming out of the ground. Note below how Increasing the Price to $1,450 Gold and $38 Silver results in a near Quadrupling, X4, 370% Increase, in NPValue and Cash Flow ]]]
The April 2011 Preliminary Assessment (PA) for the Expansion Plan found that at base case metal prices of $1,000 gold and $18 silver the pre-tax NPV would be $131.2 million and have a Net Cash Flow of $169.5 million, using a 5% discount rate. Sensitivity analysis shows that using the $1,450 gold and $38 silver prices at the time of the PA study, pre-tax the mine would have a NPV of $491.4 million and Net Cash Flow of $620.6 million.