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Certainly some like to nit pick here, imagine if you were on a jet to a holiday destination and were seated next to them. Fuc#ing nightmare. Funny how some like to bore on.
To most this sudden interest in a NA silver mine is a surprise and currently retail investors are in the dark about where why and how this change of direction has come about. Does it mean the board has lost confidence in mahenge? (MB only mentioned mahenge once in his commentary). What are we as retail investors investing in here generally - a graphite play, a sliver play, both, neither really? I cant comment further than this as its all conjecture. I am concerned about where funding for this new venture will come from however. On balance I am slightly bearish on the sliver play, but keeping an open mind.
>>Certainly some like to nit pick here, imagine if you were on a jet to a holiday destination and were seated next to them. Fuc#ing nightmare. Funny how some like to bore on.
jamtart this is true but to offer a balanced view a silver mine is a departure from why most invested (graphite play / Tanzania / energy transition / EVs etc). The going on holiday equivalent would be you boarded a flight to Tenerife now you're landing in Thailand (making no value judgement on which holiday destination is better).
I'm reasonably bullish about the silver mine development because I believe it offers near term opportunity to progress while we wait for Blackrock to (hopefully) get their deal over the line and start building our rail/road/elec/infrastructure. And I think this project was chosen for near term potential, not something that's many years away. Lets see.
This is a useful source of revenue.
Has anyone found out why the silver mine was closed in the 80's? There must have been an evaluation at the time that convinced the owners not to continue mining. That would make some interesting reading in 2024!
Silver Price was less than $2 per Oz in 1982... That might have something to do with it
What were spot silver prices like in 1984? that's an obvious point to consider
Recession also, but then again a pint of milk was less than 20p
Silver only outperformed for one period in the 80s when those two chaps tried to corner the entire market.
Other than that? It was a dead decade for Silver.
Historical silver prices
https://www.macrotrends.net/1470/historical-silver-prices-100-year-chart
The silver selling price is only half the story. If the cost of getting it out of the ground is too high then no-one will want to bother with it. I cannot believe that a profitable mine would be left in maintenance for 40 years. So what does ACP know that others have missed?
Seriously wonder how people don't bother to read stuff and yet invest.
You are right it is only half the stroy...... 2 other commodities are in the ore, LEAD and ZINC. Often many commodities come with other ones in the same formations.
Copper and gold
Copper and Nickel
Gold and silver
The main one has 'credits' applied from the sub commodities when working out the economics. So in this case you get Lead and Zinc credits. So X money from the sale of silver versus cost to produce silver Y, becomes X versus cost to produce silver Y-(lead and zinc recoveries).
Lucky Friday at a considerable further mining depth is circ $150/t and average ore selling prices are about $400/t. So anything around $100/t would be pretty good.
Many mines in these regions are bought and held by small timers, family units etc. This is one of those never really mined properly since the gold rush. In 1984 when not operational it appears someone went down and picked out promising ore and brought it up for a quick turn.
The time is right in the commodity cycle for a mine like this to get properly developed and operational and I very mush assume ACP has had access to thte historical data and sees a low cost, fast progress to being a cash generational business......Or by your thoughts only done a Google search on it and saw a postcard from the region.
I'm sure the best place to find commodities is where they are prolific -
Gold was first discovered in the Coeur d’Alene region in 1880, followed by silver in 1884.
Swiftly dubbed ‘ Silver Valley’, mineral production s tatistics for the region are impressive: over
a billion ounces of silver, 3 million tons of zinc, and 8 million tons of lead with a total
value of over $50bn, ranking the valley among the top mining districts in world
history.
Still, how long is near term?
Imminent is 4 years so near term is probably about 8.