SilverCrest Metals – A Focus On How The High Margin Las Chispas Project Compares To Other Silver Mines
Chirs Ritchie, President of SilverCrest Metals (TSX:SIL – NYSE:SILV) joins us to provide a construction update at the Las Chispas Project, which is very close to completion. This ties into a discussion on margin at major silver projects. With inflation remaining elevated, we are seeing mining costs continue to grow. As Chris outlines Las Chispas is one of the highest margin silver assets, either in or close to production, in the industry.
As Chris has mentioned in prior interviews, he wants investors to view SilverCrest as a defensive play for resource investors because of the high-margin nature of the asset that will continue to make money if costs continue to rise. While the stock has sold off with all other resource stocks Chris has been buying and thinks SilverCrest will be a stock to bounce back quicker than the rest.
If you have any follow up questions for Chris please email us at Fleck@kereport.com or Shad@kereport.com.
Click here to visit the SilverCrest website and read over the recent news out of the Company.
Agreed that Silvercrest is definitely best-in-class on many cost and margin metrics, and this is why Chris feels it is just as much a nice defensive hedge in one’s portfolio, as much as it is a leveraged way to play the unfolding PM bull market. Their management team was smart to work in extra wiggle-room by raising extra capital in better markets (so less dilutive), in coming in on schedule and under-budget, and already planning for the upcoming inflationary period almost 2 years ago, and being far better prepared than most of their peers.
This is why I’ve traded around a core position in SILV for a few years now, and why I added more to the position last week, when Silvercrest sold off in tandem with most of the silver producers and developers, but actually has far better fundamental inputs, costs, grade, and margin. It really was the case of just selling everything… the good with the bad, but over time, the valuation metrics will become more obvious.
My silver and gold stocks are down too . Glad i have a lot of oil producers and food stocks in my portfolio . My CAG is down but company has great cash flow . bought PEP again for the third time and once again its making me money . SAD to see the low quality candidate REP nominate for GOV of PENN hope he loses . love to everyone in Buffalo Jill Biden is a class act . pray for peace rsh
Rick Rule put his IMPRIMATUR on Silvercrest as best in class on Market Sniper Sunday, in my case since Mar 2020 , SILV has represented 12-19% of my resource allocation, currently @13.5%. Another consideration going forward, bringing a mine into production may range 50-200% more expensive than let’s say an equivalent Silvercrest this decade.