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Bericht aus 10/2016
So where does Santacruz stand now?
Santacruz is currently processing ~300 tpd at its Rosario mill. This includes production from Rosario and Cinco Estrellas. This mining rate is lower than previous expectations of 350–400 tpd, and the reduced mining rate is a function of the company reducing production at the Rosario mine and replacing it with production from Cinco Estrellas. Note that the latter project contains a wider vein that is easier to mine at a faster pace. Once the normal production rate is reached we expect annualized production from the Rosario mill to be just over 1 million silver equivalent ounces.
At Veta Grande the company has not yet declared commercial production, though based on discussions with management and my recent trip to visit the mill it appears the company is close to doing so. Upon doing so the company will be officially producing ~450 tpd (270 tpd attributable) with grades that are slightly lower than at Rosario/Cinco Estrellas. Attributable production should be ~600,000 silver equivalent ounces per year. With publicly announced plans to bring production up to 1,500 tpd (900 tpd attributable) by mid-late 2017, Santacruz is positioned to produce nearly 2 million attributable silver equivalent ounces per year at Veta Grande, making it a 3-million-ounce-per-year producer. We anticipate production costs to be ~$12-13/oz, meaning that the company can comfortably exceed $10 million in annual operating cash flow assuming a flat to slightly lower silver price. That's pretty good considering the company's ~$45 million valuation! And we haven't even considered the company's non-producing assets!
In addition to this production, we expect the company to release some more technical information to the market. For instance, management hopes to release a resource estimate on some of the veins it acquired from Golden Minerals Co. (AUM:TSX; AUMN:NYSE) earlier this year (Golden Minerals had done exploration work but did not compile it, and Santacruz is working on this now). We expect, as the company begins to generate more cash flow, that it will have the resources to compile more formal reports on its Veta Grande veins, along with those at Cinco Estrellas.
The combination of growing production and cash flow along with this additional information should generate market enthusiasm for the shares, and we expect them to trade substantially higher long-term.
www.streetwisereports.com/pub/na/...arket-still-doesnt-get-it
hoffe die Aktie wird nochmal hoch gezockt
