part one of this series has already been posted, and it is instructive to analyze this company's operations. they are still unprofitable because their mines are running well below capacity. they already have the labor and excess capacity to increase production substantially, but for now this results in much higher costs.

he analyzes cash flow and profitability and ends up with an estimate of a share price of $6 in the next twelve months. if the company does what it is supposed to do, this is clearly achievable, even without a large increase in the silver price.

but the lure of this company is the likelihood of it making a discovery and increasing its reserves. based on what it is producing now, it is only a small fraction of just one of silver standard's projects.

http://seekingalpha.com/article/8036...

http://seekingalpha.com/article/8050...