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Sold my IVR Friday. No sooner and silver rallies $1.25. Think I have made a mistake so put in order for PMY. Suprised it got filled today.
http://www.pacificominerals.com.au/images/2020_Announcements/2125196_Investor_Presentation_October_2020.pdf
http://www.pacificominerals.com.au/images/2020_Announcements/20201022_02297198_Drilling_Program_Update_at_Sorby _Hills.pdf
Drilling update at Sorby Hills.
Since selling out of IVR they have performed quite well, 30% up on what I sold for.. PMY have mainly been 5% to 10% under my purchase price. But I am satisfied with the move, in my opinion PMY has a bit more substance than IVR. Both are drilling and that might lead to a rerating of both or either. I imagine technically IVR is the clear winner in share appreciation. But on fundamentals the impression I have is that PMY is better and I think it has a bit less risk in holding. I go a little crazy from all the posts I read by silver bulls. December is another comex delivery month. We should hear about Bidens stimulis plans in the next few months. If things come to a head in the South China sea/Taiwan that should become apparent in a little while. So I keep on holding and will review the situation in a few months. At the moment I am all in on PMY except for around 20% cash. There are some biotechs I would like to purchase in the next 3 to 6 months but at the moment with what is going on in the world my focus is silver.
Out look for silver, or at least discussion of supply and demand in 2020. https://www.numismaticnews.net/article/record-silver-shortage-in-2020
"The forecasted combined net result of physical supply and demand is a 2020 surplus of 31.5 million ounces. However, that figure is not the bottom line. In 2020, it looks like net investment in exchange-traded products (especially exchange-traded funds like SLV) will reach 350 million ounces. When you factor in this demand, which is touted as physical demand, but may be largely on paper), the net silver shortage for 2020 could be 318.50 million ounces!
If accurate, this would, by far be the largest ever annual shortage of silver supply versus demand!
As calculated by market analyst CPM Group, the previous largest annual silver shortages, from 1991 to 2000, ranged from 111 million to 196 million ounces. The shortage in 2020 far exceeds those levels".
Pacifico to change name to Boab, not sure about ticker. New name to reflect greeness (battery metals) and the north west Australian location of Sorby hills, the boab being a tree native to those parts. Having a one to 25 share consolidation.
The share price is languising, dipping down to 1.6 cents currently, but possible share catalysts over the next 12 months are.
1. The oft predicted rerating of silver as a monetary metal due to economic upheaval from stimulis, quantitive easing etc....
2. Rising demand for lead and silver in industrial uses (electric cars, solar panels etc..).
3. DFS due out toward end of 2021. Final decision to mine then.
4. Had around $15m in cash to put toward drilling and proving up resource. Should be getting assays over the next few months for round 4 which has been completed. Round 5 to start 2nd quarter of 2021. These drilling programs will increase the resource (some say up it by 50%) and revised figures will enhance economics of DFS. From memory the PFS considered a mine with 1.5 million tonnes through put, conjecture that could double to 3 million tonnes.
5. Possibly a take over target, currently undervalued for its economic potential. Lots of mining companies raking in the cash presently. Project largely derisked. Fortesque FMG, have applied for the tennaments surrounding Sorby Hills apparently (some what puzzling?).
6. PMY own 75% of project, a chinese company the balance. PMY to finance 75% of construction costs. Being evaluated for NAIT funding (some sort of Government body to aid development), already qualified for preliminary stages of approval, will get the final assessment with the DFS.
Negatives? If the equity markets take a dive will follow the herd. If some one develops a substitute for lead batteries could be dire, it is primarily a lead mine at current prices. Shouldnt need to go to market for funds for a while but you never know. Might need some new capital to fund development depending on how generous NAIT is (share dilution). Economic armageddon?
No investment is with out risk but I think PMY has a reasonably positive outlook over the next few years, could be volatility but currently shares are cheap for the investment potential.
In hind sight was a mistake to trade my IVR for PMY when I did. Still lots of noise about good prospects for silver. I don't understand the comex so not confident of the rumours it is in trouble and the shorts will soon be squeezed. But I understand the following.
http://www.321gold.com/editorials/hamilton/hamilton122420.html
"The bottom line is silver investors have proven remarkably resolute since this metal's parabolic peak in early August. The dominant SLV silver ETF's bullion holdings, which are the best daily proxy for global silver investment demand, have held near highs in recent months. That was despite a silver correction following an unprecedented vertical soaring in SLV's holdings, driven by record capital inflows from stock traders.
The fact silver investors haven't unwound the great majority of their huge summer buying implies they still expect this silver bull to keep running higher. That makes sense with silver being a tiny global market in a vast deluge of new central-bank liquidity. With lots more capital competing for roughly the same amounts of aboveground silver, great upside potential remains. The better silver miners' stocks will amplify silver's gains".
wizAlvin
04-01-2021, 11:24 AM
53 competition entries - still time for the 2021 competition - go pmy
Sorry Wiz, have trouble finding one winner yet alone 5, will be watching.
Well the newly named and consolidated Boab (formerly PMY), BML is dull so far this year. Last July I decided to stop following the market for 2 months and IVR promptly took off. Think I will repeat that trick. But I am not at all confident it will have a similar result. The markets could crash and I would assume even the miners will be hit in a general retrace. I would then hope for a recovery. Seems there is not much choice, sell or stay the course.
Have found it differcult to access sharetrader the last few days? BML down to .42. Unprecedented demand for silver but prices static around $25-$26. Several analysts saying shares are worth double or more what they are trading at presently. But I suspect part of the problem is there are lots of investment choices out there with similar, albeit speculative prospects. MYL is one less target for silver exposure, with the coup. I presume the share will eventually recover but I am down 20% currently and have to sell down quite a few to met some obligations. Certainly interesting times to invest.
One of the problems I feel the company has is a negative sentiment to lead which will be the primary product of the Sorby resource. Here is a positive spin on lead.
https://boabmetals.com/wp-content/uploads/2021/03/BML_Lead-Upside_Rawson-Lewis_210319_new.pdf
One of the problems I feel the company has is a negative sentiment to lead which will be the primary product of the Sorby resource. Here is a positive spin on lead.
https://boabmetals.com/wp-content/uploads/2021/03/BML_Lead-Upside_Rawson-Lewis_210319_new.pdf
Nothing happening to BML and silver. Lots of posts on the silver squeeze in the aussie forums. Next month! Will see. Actually my hope is that BML is ripe for take over. Lots of mining companies with the capital and cash flow. Must cost a lot to find a mineral deposit, prove up the resource, get approvals, sort out logistics, mine design, finance and offtakes. Most of these things largely done by Boab. Possibly still some resource to prove up but with the record of past upgrades and the amount of ground they have would think this could be anticipated with some confidence. More drilling happening now. Talk of inflation coming, probably mining in Australia is going to see more inflation than other sectors because of demand for metals. Decision to mine first quarter 2022. A few years to build a mine then cash flow end of 2023. The biggest shareholder has 10%, top 10 holders own 35%. An offer of the equivalent of a dollar a share might do it and would represent good value. I for one would be interested because I see other stocks at better value than Boab for a buck. About 160 million shares, by my rough estimate. I am dreaming but it could be plauseable. The alternative is wait for the silver squeeze and 10 bags etc.....
BML languising at 40 cents. Possibly the second wave of silver appreciation starting. Gold and silver up the last few days. But Boab is probably not the number one go to stock for silver exposure on the ASX. Red metal, RDM, is talking about spinning out and IPO of the Maronan project. Jorc inferred resource 30mt at 6.5% lead and 106g/t silver (over 100moz silver). Also 11mt@1.6% copper and .8g/t gold. RDM will keep 50% raise $30m for MMA. Under 90 metres of cover so a bit of dirt to dig but it is soft ore. In the Mount Isa region of NW Queensland. RDM has been rising the last few weeks.
But I am happy enough with BML. If silver continues its breakout should be positive for the shate price.
Well BML still a bit disappointing, share price wise. And I am forced to sell some to pay tax on last years trades mainly in IVR. IVR is back a bit, disapointment in drilling results and possibly the stalled silver price? BML's drilling campaign started in May, may be we will hear how its going this month or next. Long even mid term BML seems like a good deal to me but I was anticipating not having to hold as long as it looks like I will need to. Could be another year here to see shares appreciate significantly and lots of market risk in the mean time. Guess I will stick it out.
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