re: Ann: Precious Metals Summit Conference Pr... I think...

re: Ann: Precious Metals Summit Conference Pr... I think exploration upside is a under-discussed topic. They are in the middle of a drilling program at the moment.

If the resource is proved up even further then there would have to be consideration to expanding the processing capacity of the plant. I suspect they will get the issues sorted with the existing equipment right, and then use those lessons to double the capacity of the process plant without an extended commissioning and ramp up phase.

Then there are the macro issues associated with the predicted increased demand for silver in industrial applications. The biggest single user used to be Kodak in black and white photographic solutions/paper. Obviously, that has gone by the wayside, but newer technologies have sprung up such as Solar and Microbial applications.

Then you can look into things like the US and now Canadian Mint ceasing sales of Silver 1oz coins - it's either a production issue or a supply issue. I'm leaning towards a supply issue of silver bars. You might easily get them in lots of 2 or 3 bars but that's not enough for these mints. If it was a production issue then someone hasn't done their job very well of anticipating demand. These constraints on supply can be self feeding, as people clamour for the silver for fear of missing out the next time around.

I'm not a big conspiracy theorist but a lot of people say that the likes of JP Morgan are writing big short contracts they could never fulfill with physical, if they were called on to make good for delivery.