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Topic: Earnings 2016  (Read 782 times) previous topic - next topic

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Earnings 2016
For Entertainment Purposes Only.

Re: Earnings 2016
Reply #1
https://finance.yahoo.com/news/americas-silver-corporation-reports-fourth-204400599.html

The report is pretty good, with a key statement being, "A net loss of ($5.2) million was recorded for the year ended 2016, compared with a net loss of ($19.4) million for the year ended 2016. The decrease in net loss is primarily attributable to increased lead by-product sales, higher realized silver and base metal prices, and lower cost of sales, among other cost reductions, partially offset by higher interest and financing expense."  Losses are shrinking to the point they might show a profit soon. Seems product pricing was a major factor, so leverage to silver and lead prices are key drivers for wild success at this company.

Later in the statement they project San Rafeal to be in commercial production by third quarter, potential to increase commercial at esisting operations due to product price increases, and serious reduction in costs as they get into 2018. This sounds good for a long term hold, but the company is small and any set back is met with considerable price reduction (buying opportunity?). I am going to hold my position and not add any more. Several other potential "home run" companies I am looing at are DBEXF, ISVLF, BALMF, AXU, and FFMGF. All are small companies with huge potential land packages in good neighborhoods with some confirming exploration history, some have production or the mines have produced in the past, and some have even enough to finance a development. FFMGF is a bit different in that they are operating more like a resource bank spinning off acreage and retaining an interest.

Re: Earnings 2016
Reply #2
Looking at the 3-31-2017 company presentation reveals some interesting information. One of the objectives of the reverse split and additional listing was to get institutional investor interest. a chart of ownership distribution shows 2%, 40%, and 58% ownership by insiders, institutions, and retail respectively. Maybe the strategy has worked, maybe not, as not sure of the ownership distribution history. Eric Sprott and Sprott Resources are listed as owners which is encouraging as the Sprott group seems well in tune to appreciating mining securities.

At Cosala Operations, there are 27 previously operational mines scatterred over 21,000 hectatares, a huge advantage for exploration specialists. In addition, San Rafael should be in production by end of 3rd quarter 2017 to offset closing two other mines. Another chart sows some serious reduction in cash costs, however a lot of the reduction is due to increases in base metals production contributing credits to silver cost calculations. Another result is the company is becoming more of a base metal miner as a percent of revenue, not sure if that is good or bad, just that the company is less leveraged to the price of silver as the silver mix is reduced.

Here is a link to the  presentation where there is quite a bit of information:

http://www.americassilvercorp.com/i/pdf/presentations/presentation20170331.pdf

Re: Earnings 2016
Reply #3
Outlook, ignore the 7/25 line... mistake and don't know what happened. To late now. Just stay with the closeup chart if looking for timing.


Re: Earnings 2016
Reply #4
https://finance.yahoo.com/news/americas-silver-corporation-reports-fourth-204400599.html

The report is pretty good, with a key statement being, "A net loss of ($5.2) million was recorded for the year ended 2016, compared with a net loss of ($19.4) million for the year ended 2016. The decrease in net loss is primarily attributable to increased lead by-product sales, higher realized silver and base metal prices, and lower cost of sales, among other cost reductions, partially offset by higher interest and financing expense."  Losses are shrinking to the point they might show a profit soon. Seems product pricing was a major factor, so leverage to silver and lead prices are key drivers for wild success at this company.

Later in the statement they project San Rafeal to be in commercial production by third quarter, potential to increase commercial at esisting operations due to product price increases, and serious reduction in costs as they get into 2018. This sounds good for a long term hold, but the company is small and any set back is met with considerable price reduction (buying opportunity?). I am going to hold my position and not add any more. Several other potential "home run" companies I am looing at are DBEXF, ISVLF, BALMF, AXU, and FFMGF. All are small companies with huge potential land packages in good neighborhoods with some confirming exploration history, some have production or the mines have produced in the past, and some have even enough to finance a development. FFMGF is a bit different in that they are operating more like a resource bank spinning off acreage and retaining an interest.

I just looked at the most recent company presentation by AXU and two things jumped out. First they are now predicting production by end of third quarter 2018. This is becoming like a donkey being led along with a corrot on a stick as the start date keeps moving further out. If this is being done for better silver prices fine, but that was not stated and this is a mine AXU produced and then put on care and maintenance, so why so long? Seems like this is looking like a Mutt and Jeff operation without a clear explanation of the continued delays.
Second, they finally gave details of the stream contract renegotiations with SLW. They are very complicated and AXU gave up an ownership stake to get the deal through. In a subsequent slide, AXU indicated that SLW's take during the first 3 years of production would be $3.62 of the realized silver selling price. It is so confusing that one cannot be sure they actually got any relief from the onerous terms.
It is too bad this company continues to bumble along and management making less than good decisions with respect to operations (at least communicating intent) and financing (icing on the cake being the rediculous SLW streaming deal). I am a few pennies under water on this stock and think I will put in a sell order for most of it at a slight profit. There are better looking opportunities elsewhere.