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  • Avino Silver And Gold Mines: The Perfect Growth Story [View article]
    Yes Sir.
    Apr 9 08:44 AM | Likes Like |Link to Comment
  • Avino Silver And Gold Mines: The Perfect Growth Story [View article]
    Yes, they do. The put out a PEA 2 yrs ago or so, so I bet all in costs have increased but its still attractive. The timetable is still for heap leach processing to begin start of 2016 and produce roughly 1m oz. Ag & 6,500 oz. Au for 5 years.
    Apr 8 03:55 PM | Likes Like |Link to Comment
  • Avino Silver And Gold Mines: The Perfect Growth Story [View article]
    My Apologies, I mean the Avino mine.
    Apr 8 03:46 PM | Likes Like |Link to Comment
  • Silver Wheaton Remains Trapped In 'Crisis' Valuation Range [View article]
    Why do you use EPS? not CFPS?. DD&A is a non-cash charge and it should be added to earnings. While isn't isn't always the when dealing with DD&A, SLW has a track record of buying streams on mines which either increase the initial mine life (or contract per the San Dimas stream) and/or increase production beyond initial design capacity (again San Dimas is a perfect example). Currently, SLW's DD&A has spiked and will continue to do so as SLW expenses the upfront payment it made for 777, Salobo, Sudbury. The latter 2 were part of the Vale Deal which SLW paid 1.9B for. In other words, if you go back 3-5 years and calculate net margins based on Gross Revenue, you will see it trend downwards, but that is actually beneficial as having a higher portion expensed as DD&A, reduced the effective tax rate (SLW pays so little tax but its beneficial nonetheless).
    Apr 8 03:39 PM | 1 Like Like |Link to Comment
  • Silver Wheaton: A Look Into Its Cash Flow Prospects [View article]
    Also, what deal are you referring to? Constancia was the last deal and it's a primary copper mine. If you're referring to Toroparu, debatable on whether this is considered a stream. If the feasbility study isn't to SLW's liking or they are able to find more value with that money elsewhere, off the top of my head it'd only cost them between $2-$3m if they don't go ahead with it.
    Mar 26 01:47 PM | Likes Like |Link to Comment
  • Silver Wheaton: A Look Into Its Cash Flow Prospects [View article]
    SLW increased its debt capacity when the crash began but to give them more financial flexibility for near term deals. First was the Keno Hill Stream. They did issue equity but this was for the Silverstone Acquisition. If they had engaged in an equity issuance without following up with a streaming acquisition I'd agree with you. The equity issuance was $250m and Silverstone to the best of knowledge was somewhere between $175-$200m
    Mar 26 01:42 PM | Likes Like |Link to Comment
  • Silver Wheaton: A Look Into Its Cash Flow Prospects [View article]
    That is entirely incorrect. Yes, the market portrayed SLW in such a way, however, if price had remained stagnant in silver, they had the option to amend that debt agreement, increasing the maturity in exchange for quite a bit higher rate of interest. I read numerous articles at the time which said the same but they were using the spot price of silver. The problem here was that it was impossible to actually buy silver near that price. SLW couldh've also chosen to sell it on the futures exchange which were also significantly higher than spot. This was roughly 17-19% above spot.

    "The last gold streaming deal they did is turning out to be a lead mine" - Over the past 3 years, roughly 51% of annual silver mine production comes from lead concentrates.
    Mar 26 01:07 PM | 4 Likes Like |Link to Comment
  • Silver Wheaton: A Look Into Its Cash Flow Prospects [View article]
    SLW, using the prevailing GSR and following the ramp up at Salobo, Sudbury, Constancia will be roughly 65-70%/30%-35% Silver vs. Gold. Franco is getting roughly 70% of revenue from gold and the rest from PGM's, Oil & Gas and just a few percent from other's. In terms of attributable gold, come 2016 or so:

    Slw: 230k oz. Au
    FNV: 280-290k oz. AuEq (including PGMs) and roughly 250-260k gold.

    However, FNV: roughly 170k of the 250-260k oz. are from royalties OR Streams In Canada, meaning they can be taxed at the statutory rate or 66% of the 250-260k.

    SLW: Roughly 125k oz of the 230k-235k or 53-54% can be taxed at the statutory rate.

    In other words, SLW will generate close to what FNV will generate from gold in 2016. Yes, Franco has more attributable production but SLW gets a slight tax advantage but also will be able to incur more non-cash charges [DD&A] from its gold streams (due to Salobo, Sudbury and others] thereby providing a larger tax shield. Given SLW and FNV are fairly close relative to market capitalization's, comparing the two is nothing like the example you used.
    Mar 26 12:34 PM | 3 Likes Like |Link to Comment
  • Solitario Exploration & Royalty: Think Zinc - Impending Shortage Could Lead To Big Gains [View article]
    While Solitario looks to be a solid pick, my favorite by a mile is Trevali. They are tje only primary zinc producer with at least 1 new mine set to reach production in each of the next two year + its already existing Santander operation. Additionally, with the start of Caribou and its 3k tpd mill early 2015, Trevali will also produce a significant amount of AgEq byproduct credits (silver & gold). I got in around 65c and its done quite well.
    Mar 4 09:27 AM | Likes Like |Link to Comment
  • 2 Junior Silver Stocks Poised For A Big 2014 [View article]
    I appreciate the kind words Dan. I work in the industry, so ive been busier than ever. I work primarily with David Morgan as well as do some things with the Sprott guys, and that crowd. As far as silver companies go, First Majestic is still a core holding of mine as well but didn't add to it last year because I bought so much under, at and just over $2. That combined with the absurd increase in the royalty tax in Mexico just made me see better opportunities out there. My top 3 positions, most of which were all made in late 08-1H 2009 are still Silver Wheaton, Sandstorm Gold, then First Majestic. Aside from the mainstream crap like the two in this article, take a look at some smaller silver/gold miners. I really like the fundamentals zinc has through 2018 and in trying to find the best way to play it outside futures (which I do also but on foreign exchanges) , I came upon the only primary zinc producer. Looking further into it, the one mine it has up and running in Peru, its Santander mine, Trevali will produce on average between 650k-800k (depending on the area mined). But its next mine, which is fully funded to reach production in late q4-q1 2015, its the Caribou mine and mill (3k tpd). The silver grades at Caribou are roughly 85 g/t as well as 1 g/t Au. So on AgEq basis, the avg grade is 130-135 g/t. Assuming the base case scenario in which recoveries never rise above 70%, AgEq production will be roughly 3m oz./annum starting in 2016. (1.8-2.2m in 2015). Trevali the has several projects which have run on a pilot plant and just need another 4-5k tpd mill for the Halfmile and Stratmat mine in NB. It also has a past producing primary silver mine (avg grade 250-280 g/t) and a 500 tpd mill, expandable to at least 800 tpd. I;m sure you;ve heard of SantaCruz Silver, whose mgmt I know personally and has a lot of ties with First Majestic. Anyway it has 1 mine ramping up to capacity (by end of Q2), Rosario. It will only produce 1m-1.2m oz. Ag on average but a very low AISC/oz. It also has the San Felipe mines, which will be much bigger than Rosario and only require 23-25m in capital investment. In this case, the Devil is in the details. the majority of its current resource estimate is from what has proven to be the lowest grade vein (among the 7), so if you do back of the envelope calculations for a more realistic Ag grade on several of the other veins, the average Ag grade would be roughly 60-70% higher. There is more but just email me.
    Feb 27 06:42 PM | Likes Like |Link to Comment
  • Metanor Resources - To Consolidate Or To Be Consolidated [View article]
    Nolan Waston let that slip at the CIBC conference it put on for all the royalty/streaming companies. Actually, he said AISC around $950. It's actually quite funny as he told story regarding when it acquired the Bachelor lake stream, it was expected by mgmt as a whole, that it would be one of its higher cost producers. Before declaring commercial production it is among its lowest.

    I agree with you LOM forecast, however, I think 7 years is easily achievable if it were to run at or above nameplate capacity after the expansion to 1,200 tpd. Just looking at all the drill holes and how much more exploration potential remains, i bet the first resource estimate updated increases to at least 650k-750k Au and the followed resource estimate update in excess of 1m oz. Au.
    Feb 26 02:07 PM | Likes Like |Link to Comment
  • Metanor Resources - To Consolidate Or To Be Consolidated [View article]
    Word is, for the quarter ended Dec 31. AISC was roughly $975, which when running at full capacity should push down all in costs to around $950 and by the time it is running at new design capacity following the 50% expansion ($4m), say Q4 2015 - 1h 2016, AISC could easily be below $900/oz. It's a shame Metanor has such a sloppy share structure.
    Feb 26 01:23 PM | Likes Like |Link to Comment
  • Has Gold Streaming Weakened Silver Wheaton? [View article]
    The Vale deal was good and bad. SLW should have only bought the Salobo stream as Sudbury has a fixed term and little upside production potential. Salobo on the other hand, will undoubtedly engage in at least 1 expansion and more likely 2 after the current one is finished. I wouldn't be surprised to see SLW receiving as much as 140k oz. within the next 10 years or. At the very minimum, I suspect SLW will have attributable production of 90-100k Au before the end of the decade. The exploration upside at this property is huge. I think production from Salobo will easily be in excess of 40 yrs, but we shall see....

    Silver Wheaton likely acquired so many of gold streams of late for two reasons, 1) It wanted to reduce the volatility in its stock price. 2) I don't think it could have found $2.6b to invest in silver streams (regardless of whether it is from primary base metal mines (roughly 60% +/- 5% of silver is produced as a byproduct) gold mines (roughly 30% +/- 5% of silver is produced from gold mines) or primary silver mines (only 10% +/- 2%)).

    Personally, I think SLW should had paid more for 777 (maybe $650m-$700m) so that the reduction to 50% of the gold was eliminated and only acquired the Salobo stream. That would slightly reduce attributable gold production for SLW but also would have left with $375m-$400m more in capacity. The extra capacity would go a hell of a long way in this market.
    Feb 21 04:25 PM | 3 Likes Like |Link to Comment
  • The New Face Of Silver Wheaton [View article]
    I agree completely PM's rock. I am hardcore libertarian and anarcho-capitalist. I believe everyone owns their own body and whose business is it whether you want to drugs, prostitute yourself, etc. However, I believe in the non-aggression axiom, which I think you were getting at. That is there only needs to be one law, that is "do not agress against others"

    When I say Ethical, i;m describing something that can be logically deduced. For example. if person A kills person B, that is unethical because the only thing they have the right to kill is themselves. Or in the case of stealing, back to non-agression axiom and stealing is an act of aggression. As for the punishment, in the case of murder, the person who murders another should be killed.

    I agree with you completely on taxation, actually taxation of any kind. The income tax actually isn't legal (as i;m sure you are aware of). If you remember Irwin Schiff, he was able to prove it isn;t legal and only was thrown in jail after giving classes to many others. After all, taxation is theft. But even I thought taxation was ethical, these idiots in government are so dense, they can't even do it semi-efficiently. That is, make everything a consumption tax. But of course, the government has to waste as much money as possible paying these useless drones from the IRS a ton of money given how many of these pathetic humans they staff.

    I use the word Ethical or Ethics because those are things that can be logically deduced. Too many people don't understand the difference between ethics and morals. Morals are entirely subjective but too often understood to mean something objective.
    Feb 19 07:12 PM | 2 Likes Like |Link to Comment
  • The New Face Of Silver Wheaton [View article]
    Fair enough. I;ve seen several corrupt cops, 2 in the San Francisco area and one in Spokane, 2 of which I recorded with my iphone and only one of them was fired. The problem I have with them is that they are not needed. There would be less violence if gun controls were more lax. The so called "wild wild west" wasn't wild at all and that's because of the obvious. Also, look what trying to fight "the war on drugs" has done, its only exacerbating things. It;s absolutely pathetic a cop would arrest or even ticket a victimless crime. It;s also pathetic that a cop would ticket or arrest someone "because its against the law" instead of whether they think it's ethically wrong. That truly takes a weak character. I know, at least, at one police station near where I went to college, the Sheriff was making $130,000/yr. and another average police officer was making $90,000. That is disgusting on its own, not even counting the absurd pensions they get. Personally, If I didn;t have any integrity, I would be a cop if I had no productive/marketable skills solely because its a cushy life without having to do much work.
    Feb 18 07:36 PM | 1 Like Like |Link to Comment