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speedybure (< 20)

Silvers New Standard........

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9

June 10, 2009 – Comments (8) | RELATED TICKERS: SSRI , SLW , SLV

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 -

 

8 Comments – Post Your Own

#1) On June 10, 2009 at 6:45 PM, 100ozRound (29.44) wrote:

Well you've just convinced me to dig a little deeper into SSRI (no pun intended)

Thanks for this info

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#2) On June 10, 2009 at 7:01 PM, speedybure (< 20) wrote:

I plan to play SSRI with $30 strike Jan 2011' Calls, God I wish I were 34 instead of 24. There are deals (internationally of course) that are jaw dropping

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#3) On June 10, 2009 at 7:10 PM, XMFSinchiruna (27.71) wrote:

I'll write an update piece soon ... thanks for the reminder. ;)

 

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#4) On June 10, 2009 at 7:22 PM, BuildingWings (< 20) wrote:

I love SLW. I bought in real life at $2.99 and I am kicking myself over not having bought more. I have been considering adding SSRI and FRMSF. Do you have any thoughts on the latter stock? Thanks!

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#5) On June 10, 2009 at 7:30 PM, BuildingWings (< 20) wrote:

Also, I just want to point out to the uninitiated that silver is used in the making of solar components as well. Some research indicates that the amount of silver used by the solar industry will exceed 24 million troy oz. in 2016.  So silver is a solar play, as well.

 See the following article: 

http://www.commodityonline.com/news/Silver%E2%80%99s-new-boost-comes-from-rising-solar-industry-18265-3-1.html

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#6) On June 10, 2009 at 7:47 PM, speedybure (< 20) wrote:

BuildingWings;

I bought at the exact same time in Nov and i to am kickin myself. I did initiate a very large position in SLW and AUY, but I loaded up on silver and began buying oil contracts a month or so after. I would have purchased more but i wanted to make sure i had enough equity in case commoditties dropped like a rock and I had a margin call. I to love Slw, and even after 250% bump I added more. 

As per your other question I actually purchased 1500 shares at 1.83 Canadian and added another 250 at 2.02 Canadian and another 250 today at 2.4. I think it will be taken out, as consolidation is not to far off. I consider (paas, slw,* ssri**, svm, fr.to* , the only ones worth investing in). I like it very much but am unlikely to increase my position further due to the fact G&S miners account for nearly 50%. Despite my liking of first majestic I rather be overweight SLW, but I think first M will be at least a 5 bagger. The reason for writing a post in ssri is the enormous resource base and accerelating reserve base in quality mines. Your head is in the right place my friend.I have made a valuation model for fr.to and with silver at a $18-20 long term price, I got $7.5 - $10.2 USD

 * - own CS, ** -Call Options

 

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#7) On June 10, 2009 at 7:52 PM, speedybure (< 20) wrote:

 BuildingWings;

You are exactly right! But from what I have gathered the increase use in batteries, will have the largest impact. But who knows...

Check out the link below to the silver institute, it has supply / demand numbers for the last decade..very bullish. Who are we kidding it will be the inflation trade that shoots this baby to the moon, haha

 

http://www.silverstandard.com/assets/pdfs/World_Silver_Survey_2008_Summary.pdf Report this comment
#8) On June 10, 2009 at 9:20 PM, ChrisGraley (29.69) wrote:

All you silver buffs take a look at MVG. The are selling at a tastey price right now.

 

By the way I own all of the above and a few more.

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