Magna will take all the shares if necessary and it is a condition that they cannot back out if the price of silver falls further.
Collect $5.1M from previous silver hedging and now have 900,000oz of Silver Hedged at $23.75.
397,000oz silver in oversize. Spread out over the past 6-7 months this would have added approx 60,000oz to the monhtly production average of approx 80,000per month..... provided the ball mill could recover 100%. That would mean approx 140,000-150,000oz per month production.
The key seems to be the performance of the ball mill. If it can recover close to 100% in the oversize and the project settles at producing 140-150,000oz per month and price of silver stays above $20, then current share prices are still very very cheap.
Risk reward for me looks good and at 13c per share is a no brainer.
DYOR
CCU Price at posting:
12.6¢ Sentiment: Buy Disclosure: Held
