Value Microcaps Junior Miners

[checkmate28]

USA USAPF Silver Earnings out Impressive Situation brewing.

Key takes.

On $17 M in revenue, and 1.2M oz AgEq, they produced $1 Million in earnings and $2.2 in Cash Flow

About 5 Million yearly AgEq rate of production for a 120 Million Market Cap

On its own that sounds pretty good, but the kicker for the future value, is going to be the San Rafael Development Project. Im including a cut and paste from todays news that is clear as day.

The Project is tracking well against the development schedule and budget, and is fully permitted to commence production. The Company expects to begin stockpiling ore at the mill at the end of Q2, 2017 with commercial production in Q3, 2017.

As previously disclosed, the Project is expected to deliver average annual production of 1.0 million ounces of silver, 50 million pounds of zinc, and 20 million pounds of lead over a 6-year initial mine life at negative AISC based on current reserves. The Project is a brownfield development that will utilize certain existing infrastructure at the Cosalá Operations and is expected to have an initial capital cost of approximately $20 million.

On-going optimization since announcement of a prefeasibility study on the Project on March 30, 2016 (the "Prefeasibility Study") is expected to enhance the Project's economics by reducing both initial capital expenditures and future operating costs through: deferring the mill expansion and maximizing the existing mill capacity; reconditioning existing mobile equipment from Nuestra Señora rather than purchasing new equipment; relocation of the mine shop to surface; and applying productivity improvements to development which were not included in the Prefeasibility Study but have since been demonstrated at the Nuestra Señora mine. In addition, since publishing of the Prefeasibility Study in H1-2016, metal prices have increased significantly. Current prices may allow the Project to extend its mine life by lowering the cut-off grade and converting additional resources to economical ore3.

### If there are 1 million more ounces of Silver at an AISC thats negative than we have 1,000,000 x $18/oz Ag or $18M more dollars falling to the bottom line base case.

Add to that new efficiencies from the initial San Rafael pre feasibility that should be updated this year and we'll see increasing production numbers and CF over the current Pre Feas.

My quess is USA Cash flow could be in the neighborhood of $30 million if metal pricing (especially Zinc) stay the same.

In my book, with a current MC of $120M, over $26M cash and $6M debt, you get an EV of only $100 Million for a future value based on $30 M CF. Thats leverage with a capital L and has to be worth another 300% to the current share price of .28 if they pull this off and metals stay the same.

Top notch management, a share roll back, impressive FX currency situation and a nearly approved NYSE listing all add positively to the Impressive Situation. We got us a winner

Not sure whats holding the share price back, but possibly the companies previous reputation for high costs and their current attitude to not promote. The reality is, USA doesnt need money from the banks, so possibly their internal motto is ( lets not worry about the share price, we have work to do, and the share price will be there when the time is right.

Opinions and additions appreciated!

Checkmate28
JMHO





https://www.juniorminingnetwork.com/junior-miner-news/press-releases/1883-tsx/usa/26637-americas-silver-corporation-reports-q3-2016-financial-results.html