Silver miner valuations

Discussion in 'Stocks & Derivatives' started by hammer, Mar 1, 2011.

  1. hammer

    hammer New Member

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    Hi there.

    I was interested to know if anybody might be able to gauge roughly what CCU and SVL is currently discounted at in relation to what their share price might be if they were both in full production currently. A cursory glance of the chart for both stocks and a 60 day silver chart reveals there is a somewhat uniform movement in both stocks share prices from late january early february when the silver price was around $27.50 to todays $34.00+.

    From my approximations CCU looks like it moves around 7.1c for every dollar movement in the underlying silver price whilst SVL moves 2.3c for a dollar rise or fall in the silver spot price.

    So the magical $50.00 level that gets bandied around so often would result in the share prices of CCU and SVL hitting $2.13 and $0.745 respectively.

    The questions i would like to know the answers to are -

    Are there any reasonable ways to gauge price movements in miners in relation to the underlying commodities price when the company is at different stages of development in relation to their resource extraction ?

    Are there any reasonable ways to gauge price discounts in relation to, say, SVL who has a recorded resource but is yet to start production ? What would you expect SVL to sell at if it was currently in production with the resource that it has recorded thus far ?

    thanks. ;)
     
  2. Blame_Game

    Blame_Game New Member

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    Look at the CCU thread under 'Stocks & Derivatives.' There you will find what you seek. Start from page 1 and read on.
     

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