January 11, 2004
The table with all the mines and their reserves, gives a lot of information, even too much. It is difficult to read it quickly and to see that they are the mines who interest us quickly and mines with an identical ratio have sometimes a very various profile because their reserves are not of the same size. I think notably of PAAS who has a ratio of 7 but she has the biggest money in reserve with 874 million ounces, SVL has a ratio superior to 8.9 but with only 28 million ounces. Two mines with one almost identical ration not for all that the same profile, SVL represent much more risks for the investor than PAAS. Best, it is to find important reserves with a high ratio, but it is very rare, MNMM AND SRLM is interesting of this point of seen.
But, I do not want to influence your reading of these tables and I let with you interpret only this information.
Small reminders:
Ratio: it is the value of reserves divided by the total value of market capitalization. For example a ratio of 10 means that for 1$ of actions, you have 10$ of reserves.
In the first table (ratio of silver, reserves are given in ounces.
But, in the two other tables, reserves are given in $us; because reserves are too different (Au,Ag,Cu,Zn,Pb,Mo,Gaz).
In this diagram, only are reserved the companies which have money in reserves. There are 32 companies which produce some silver in this table and they add up 4 468 million ounces of money, what gives an average of 139 million ounces by company.
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This second diagram uses the ratios of all the reserves about is type. Reserves are expressed in $U. DROOY AND IVN distinguishes itself by the value of reserves and ADB by her very high ratio. I like very much values as FAN, EXR or CCU ( copper), for their silver's reserve and their presence in the copper and Zinc. Attention, ratio and reserves do not make everything, production cost raised, important geographic risks, worse or excessive debts of sales on credit can totally cancel the interest of certain companies. On this site, I speak about companies which seem to me interesting, it is not my comment to say that such or such company is bad, I indicate just the one that seems to me to be of good investment nevertheless I can make a mistake.
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The third, and last table, is the same that before but three values are abolished there to improve the legibility of it. Three values are DROOY, IVN and ADB because they have extreme values.
