SilverCrest Metals (NYSE: SILV) Webinar Notes - Oct 4

[dan_s]

I am very bullish on this mining company, primarily because the timing is prefect and it trades on the NYSE.
The Las Chispas mine in Mexico is operational and should be ramped up to near full capacity by January, 2023.

My notes from the webinar (a replay link will be on the EPG Website late today)

> Las Chispas s/b in "commercial production" by January and free cash flow positive in Q1 2023. Plant is recovering ~90% of silver and gold from the ore.

> They are planning to do more promotion of the stock now that the mine is operational. "Road Trips" should draw more investors.

> Original feasibility study shows mine operating expenses at slightly less than $7.00/oz of silver/gold, but inflation (labor costs and power) may push opex up to near $10.00/oz. This compares to current silver prices of $21.00/oz, so Las Chispas should be one of the most profitable silver mines (per oz) in 2023.

> SilverCrest is already DEBT FREE (cash exceeds what's drawn on their credit facility today). Credit facility should be fully paid off in 1H 2023. From that point the board will decide to buy back shares or pay dividends. A strategic acquisition is also possible.

> All metals are very cheap today, thanks to strong US dollar. In March 2022, silver was $26/oz.
See silver price chart here: https://tradingeconomics.com/commodity/silver

> VERY IMPORTANT POINT: SilverCrest has already mined a lot of ore, so they have a lot of ore on the surface that can be used to provide a "cushion" for the processing plant.

> The Las Chispas mine produces gold and silver. Much higher volumes of silver, but at current commodity prices gold should generate ~45% of revenues.

> Las Chispas is a sub-surface mine, but shallow. Tunnels are large and trucks haul out the ore.

> The world will soon be "short silver". Just like oil, there has been under-investment in silver mines, so lots of large silver mines are on decline. The potential for silver prices to move up is HIGH.

> Silver demand is approximately 60% commercial and 40% for investment (coins, bars and jewelry).

> Solar panels use silver.

[ED_OSHEA]

Dan

Thank you for this webinar.

Ed OShea

[dan_s]

I am also bullish on Solaris Resources (SLS.TO) that I believe is a "Screaming Takeover Target". It is a copper mining company.
They are hosting an EPG webinar on Tuesday, October 11th. You can register to attend the live event on the EPG website.