Silvers New Standard........
2008 was Silver Standard Resources coming out party and the beginning of an Incredible Growth Story. Those of you who have read my ramblings know my Silver Wheaton Fetish, but SS is just to incredible a story not to talke about.
I've never hear of this company! Well all the reason to be bullish people, exploiting abnormal profits is not an easy thing to do.
This post is not meant to discuss silvers fundamentals but rather point out what I think will become the largest Silver miner in the world. So what is so great about SSRI?
They have quickly jumped from an exploration silver mining company to a mid-tier (which is unlikely to last for a long time due to the rate they have been converting measure,indicated & inferred into proven reserves.
They have already converted 200 million ounces of resources into proven reserves. In addition they are likely to report 1.7b - 2.0b oz of silver resources by year end. The Piriquitas mine will produce 6m oz in 09', ramping up to 10-11m oz by 2010 and 13-14m by 2011. Remember people this is just 1 mine, which will produce more than the average silver company. If they can even come close to replicating their track record, which I think they will, they will propel themselves to the top along with industry leaders such as Silver Wheaton, Pan American & a host of others. In my humble estimations SSRI will have over 1 billion in reserves by 2012-2013 or so and 2.5-3b in total resources.
I believe Silver will peak either in 2012-2014 at which point I expect SSRI to produce 30-40+m oz (barring the outcome of projects in the pipeline). Although this is still below its peers, I think production growth will continue at a furious pace.
There mines are nothing short of gems especially that in Quebec and Pirquitas in South America. Not only is the ore high grade but the mine life of these mines is worth taking a look at. SSRI is hitting stride at the right time as I expect them to be free cash flow positive in 2010 (possibly '11), but just in time to ride the biggest wave in the second leg up in this bull market. Large Capital expenditures in being spent presently and over the last few years, is paying off big time.
SLW & SSRI belong in everyones portfolio -