BBOTCS USA.to AMERICAS Silver Starting to take it more serious.
2016 Guiding 2.5 - 3Moz silver 5.5 - 6MAgEq ???
Brought costs down this year at both Galena Idaho and
Cosala Mex 66% . This should put them in solid Cash flowing
territory starting this quarter.
Company wide Resource, 120M oz including 30M reserves is highest I know of for this size company MC. Large pipeline of explorations to sustain long term operations 40yrs, including 2 mines closed in 2013 due to metal pricing. Humm!
They have a $25M cash buffer and $9M debt
All projects 100% owned. No streams or royalties
San Raphael development project, $20M CAPEX and pre-tax IRR
of greater than 80% and is expected to see revenue in q3 2017.
Could be mostly paid for with cash flow IMO.
San Raphael mine starts stock piling in Q2 2017, In 2018 it
will produce at below zero AISC with Zinc and Lead credits,
and bring company wide AISC between $7 & $8. CEO said they should CF $35M in 2018 at Q3 2016 metals pricing.
This year they should produce 13M Lbs Zn (on Fire) and 26M Lbs
Lead. By 2018 guiding for 50MLbs Zn + 50M Zinc
USA has about 550M FDS when about 80 M options and
warrants get exercised. Im assuming they are getting
exercised now causing the overhead on the share price.
As to the RS, I ask myself, would I rather be invested in
550M shares at $.33 or 55M OS at $3.33? When I look at
the fundamentals, it doesn't make a difference to me. This
is not the typical RS that is done to allow a company to
print more shares but rather a decision to facilitate US
listing requirements and institutional investment requirements.
So previous reputation of high costs, high share count,
warrant overhang and cheap commodities are causing a
reduced share price relative to future value, all of which
can be solved by a little time and great management.
Looks like a great contrarian entry to me?
10 x 2018 projected CF is triple today's MC/EV plus higher
commodities pricing should weigh in to.
For comparisons I can remember when First Majestic just
breaking 6M oz AgEq, traded at 2.5B MC at $26 silver and
GORO traded at 1.5B MC with less production.
I think the list of fundamentals and on deck pos catalysts will chew threw negative catalysts and leave only positive pressure on the share price.
I have my first call into the company and will report if I find anything important.
Checkmate28 JMHO
