RE: Sector moving21 May 2024 20:12
With a reminder.....
The best thing about it is those that consistently fail to comprehend the principles of a rear view window P/E.
It's been explained already that most of the biggest silver miners in the world didn't even have a stated P/E for last years earnings as they were loss making.
Fres was specifically name checked by Rick rule in a recent sprot investors call as best in class.
The concept of P/E moving on a inverse correlation basis had to be spelt out to a similar class dunce over on ANTO last year.
Since then the price has rocketed over 100%+ and they still don't get it?
There was another dunce on here earlier this week, maybe they have figured it out, maybe not.
Of course they don't / can't comprehend these principles as you need a modicum of intelligence to understand that non reoccuring sunk costs expended in a prior year (such as costs of bringing a new mine in) impacting bottom line earnings for that historic period suddenly pivots when the underlying commodity price has risen & its not just sales revenue that will increase moving forwards with a dramatic positive future impact on GPM & NPM but that the inventory held dramatically re-rates in Value.
The above basic principles should be fairly simple to grasp.
However, I will spell out for one last time the crucial bit that is generally lost by many is the dramatic impact upon the assets NPV when you get the duel impact of rapidly rising commodity values combined with the prospect of future falling interest rates. The NPV calcs literally go vertical as the cut off grades can be sharpened up, previously uneconomical zones rated as nil value suddenly become highly profitable and literally billions of hidden reserve can be unlocked on the balance sheet leading to significant upward re-valuations in SP.
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