Jantimot, these are all relevant questions. I think we will know more with the next quarterly production figures. However, the company is valued well below what it was in November, when the grade control issue was announced (and subsequently addressed). The company has been taking steps by installing log washers, purchasing a ball mill and independently verifying the resource estimate. They have doubled the project life by adding to the resource through further exploration and infill drilling.
I honestly come up short on what else they can do now, except to show that production is heading in the right direction.
The market cap is just shy of 75 million. 75 million for 800 million dollars worth of silver at probable reserve classification. Or 1.5 billion dollars worth of silver if you look at the resource estimate (indicated and inferred)
The pits are developed and the mine is digging ore. The process plant is in and is producing, albeit with teething problems. This is as "ready to wear" as it will ever be.
75 million for all this is incredibly good value. If you could buy the mine for this today, and still had to spend 25 million to make it profitable, you'd see your money back in 3 years, with at least another 7 years of production on top of that.
That's why I'm a buy.
CCU Price at posting:
29.1¢ Sentiment: Buy Disclosure: Held
