SilverCrest Mines Inc

Posted: January 31, 2013 | Author: | Filed under: Juniors, Silver | Tags: , , , , , , , | Leave a comment
English: Silver bullion bar 1000oz bottom view...

English: Silver bullion bar 1000oz bottom view / view from underneath (Photo credit: Wikipedia)

SilverCrest Mines Inc. 
SVL : TSX-V : C$2.58
SPECULATIVE BUY 
Target: C$4.50 

COMPANY DESCRIPTION:
Silvercrest is a junior silver producer with a 100% interest in the Santa Elena silver-gold mine in Mexico and a 100% interest in the La Joya silver-gold-copper project in Mexico. Santa Elena is ramping up to produce an estimated average of 1.5 million ounces of silverequivalent per year. Through the development of an underground operation and facility at Santa Elena, the mine should ramp up to produce 4.6 M ozs of silverequivalent by 2014E.

Investment highlights


 SilverCrest reported an updated resource estimate for its 100%-owned La Joya project in Durango, Mexico. At a 15 g/t Ageq cut-off, the AgCu
Rich Zone hosts an inferred resource of 126 million tonnes grading 23.5 g/t Ag, 0.17 g/t Au, and 0.19% copper, representing a silverequivalent
resource of 199 million ounces, in line with expectations.
 More importantly, SVL outlined a higher grade starter pit for the La Joya project. Using a 60 g/t silver-equivalent cut-off, there is a 27.9
million-tonne resource grading 112 g/t silver-equivalent. SVL has begun work on a Preliminary Economic Assessment (PEA), which the company expects to report in H2/13.
 SilverCrest also reported an initial resource estimate for the Contact Zone at La Joya (a tungsten/molybdenum deposit) that lies below the
AgCu Rich Zone. The Contact Zone hosts 98 million tonnes grading 0.055% W03 and 0.012% Mo, containing 118 million pounds of W03
and 23 million pounds of Mo.
Valuation
We have adjusted our valuation to reflect the updated resource estimate for La Joya. We ascribe an in situ value of US$1.50 per silver-equivalent ounce for the higher grade resource with an additional value of US$0.50 per silver-equivalent ounce for the lower grade resources. Our valuation of the La Joya project has increased to US$169 million, up from US$152 million previously. The net impact is an increase in our peak silver price estimate of NAVPS (5%, US$35/oz Ag) to $5.92, up from US$5.76 previously. We continue to value the shares of SilverCrest based on a 0.75x multiple to our peak silver price estimate of NAVPS. We note that SilverCrest is currently trading at 3.1x 2014E CFPS and 0.49x P/NAV (5%, spot) versus the junior producer average of 7.0x 2014E CFPS and 0.65x P/NAV (5%, spot).

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SilverCrest Mines Inc. Exploration Update Spec Target $ 5

Posted: November 28, 2012 | Author: | Filed under: Exploration Companies, Mexico, Silver, Speculative | Tags: , , , , , , , | Leave a comment
English: Silver medal with cup. Polski: Srebrn...

English: Silver medal with cup. Polski: Srebrny medal z pucharem. (Photo credit: Wikipedia)

SilverCrest Mines Inc. 
SVL : TSX-V : C$2.65
SPECULATIVE BUY  Target: C$5.00

COMPANY DESCRIPTION:
SilverCrest is a junior silver producer with a 100% interest in the Santa Elena silver-gold mine in Mexico and a 100% interest in the La Joya silver-gold-copper project in Mexico. Santa Elena is ramping up to produce an estimated average of 1.5 million ounces of silverequivalent per year. Through the development of an underground operation and facility at Santa Elena, the mine should ramp up to produce 4.6 M ozs of silver equivalent by 2014E.
All amounts in C$ unless otherwise noted.

Investment highlights
 SilverCrest reported 15 holes from the 70-hole phase II drill program at La Joya. At the southern extension, five holes intercepted high grade mineralization relatively near to the surface, including headline hole DD12-86 that intercepted 45 metres grading 135 g/t silver, 0.11 g/t gold, and 1.14% copper (or 240 g/t AgEq).
Based on these results, the southern extension could potentially be used as a starter pit for the project.
 At the Contact Zone, four holes returned intercepts of 14.9 to 217 metres grading 0.018% to 0.064% tungsten, plus silver, gold, and copper. The zone appears to cover an area of two kilometres by one  kilometre with a thickness of 10 to 200 metres. Results at Santo Nino continue to intercept semi-massive sulphides with Hole DD12- 82 returning 18.4 metres grading 20.1 g/t silver, 0.04 g/t gold, 0.43% copper, and 0.01% tungsten, or 59.9 g/t silver-equivalent.
Valuation
Drilling continues to indicate the potential to significantly increase the resource size at La Joya. We see the potential for the company to double
its current 101 million ounces silver-equivalent resource. The company expects to release an updated resource estimate in Q4/12, which will
include the tungsten from the Contact Zone, and a PEA expected in H2/13. Our valuation and recommendation remain unchanged. We continue to value the shares of SilverCrest based on a 0.75x multiple to our estimate of peak silver NAVPS (5%, US$40/oz Ag) of $6.68, unchanged.

SilverCrest is currently trading at 3.1x 2013E CFPS and 0.47x P/NAV (5%, spot) versus the junior producer average of 8.0x 2013E CFPS and 0.67x P/NAV (5%, spot).

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SilverCrest Mines Inc. SPEC BUY Target $ 5.00

Posted: November 1, 2012 | Author: | Filed under: Mexico, Silver, Speculative | Tags: , , , , , , , | Leave a comment
English: Silver bullion bar 1000oz bottom view...

English: Silver bullion bar 1000oz bottom view / view from underneath (Photo credit: Wikipedia)

SilverCrest Mines Inc.

SVL  TSX- V  $2.00

COMPANY DESCRIPTION:

Silvercrest is a junior silver producer with a 100% interest in the Santa Elena silver-gold mine in Mexico and a 100% interest in the La Joya silver-gold-copper project in Mexico. With the integration of a mill and development of an underground mine, the Santa Elena is expected to ramp up to produce 4.5-5.0 million ounces of silverequivalent by 2014.

Investment highlights

The Company has closed a $ 34/5 Million equity offer  at a price of $2.55/share). Roughly $23-24 m illion of the proceeds from the financing are earmarked to close out the company’s hedge book (roughly 29,000 ounces of gold hedged at $926.50/oz). The hedge book is expected to be closed out within the next few weeks. After closing out the hedge book, we estimate that SilverCrest should have roughly US$45 million in cash in the bank. 

The company trades at a significant discount to other juniors , the share price has risen 83% since October 2011, compared with the TSX Venture Index, which is off 15% over the same period of time.  

Valuation

We have upwardly revised our gold and silver price assumptions and we have adjusted our valuation of the La Joya project downwards to reflect the drop in the average market in situ value for silver projects. The net impact is a drop in our estimate of peak silver price NAVPS (5%, US$40/oz Ag) to C$6.87, down from C$7.40. With the hedge book to be closed out, we are increasing our valuation to a 0.75x multiple to our peak silver price estimate of NAVPS (5%, US$40/oz). We note that SVL is trading at 2.8x 2013E CFPS and 0.47x P/NAV (5%, spot) compared with the junior producer average of 9.0x 2013E CFPS and 0.75x P/NAV (5%, spot).

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SilverCrest Mines- update on production

Posted: October 17, 2012 | Author: | Filed under: Juniors, Precious Metals, Silver | Tags: , , , , , , , | Leave a comment
Silver-209840

Silver-209840 (Photo credit: Wikipedia)

SilverCrest Mines  (SVL : TSX-V : $2.55)

 

SilverCrest reported Q3 production of 151,368 ounces of silver and 7,184 ounces of gold with sales of 152,088 ounces of silver and 7,923 ounces of gold.

Gold production was impacted by slightly lower-than-expected grades of 1.37 g/t Au vs. expectations for grades of 1.5 g/t Au, which was consistent with the current mine plan. Gold grades are expected to increase in Q4/12 as the company mines higher grade benches. Meanwhile throughput was slightly lower than expected at 2,887 tpd,. This may have been impacted by the three days of operations that were disrupted by a small number of dissidents that were demanding an increase to the annual lease payments for mining. These activities were quickly put to rest by the government by removing the dissidents.

During the quarter, the construction of the phase II leach pad was completed and higher grade material was loaded onto the pad, so that it will return metal immediately. The company is currently ordering long lead time items required for the mill expansion.

SilverCrest is one of Canaccord ‘s  focus list picks based on its his view that the production and cash flow growth associated with the expansion of the Santa Elena mine (100%, Mexico) and the resource expansion potential of the La Joya project (100%, Mexico) is not reflected in the current valuation of the company.

 

 

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SILVERCREST MINES

Posted: August 16, 2012 | Author: | Filed under: Exploration Companies, Juniors, Mexico, Precious Metals, Silver | Tags: , , , , , , | Leave a comment
English: Silver bullion bar 1000oz top view

English: Silver bullion bar 1000oz top view (Photo credit: Wikipedia)

SILVERCREST MINES (V-SVL) $2.37 +0.28
The chart on SilverCrest Mines gives you a look/see at what has happened in most junior mining stories over the last several months…or make that the resource sector in general.
SilverCrest had a two-for-one sale as silver and gold prices have retreated and more importantly, investors piled out of the market and into cash…or anything with a dividend. The chart tells us that maybe there is some faith coming back, although the price of silver is still a long way from its previous highs.
SilverCrest does a quarterly update and Canaccord who calls SilverCrest his number one pick in the precious metals sector notes that “SilverCrest reported an adjusted Q2 EPS of US$0.10 on sales of 124,739 ounces of silver and 8,679 ounces of gold, slightly ahead of our estimate of US$0.06 on lower than expected minesite costs.”
More importantly, “The company continues to generate strong operating cash flow and possessed US$34.9 million in cash at the end of June. Based
on the company’s balance sheet and cash flows, we no longer believe that an equity financing is required to finance the expansion of the Santa Elena mine and exploration of the La Joya project.”
This is, needless to say, rather important to the future of SilverCrest Mines and necessary money down the road. There is one thing to be aware of and that’s sooner or later, we wouldn’t be surprised to see Mexico adjust its royalty rates although Mexico is currently one of the safest of the havens for precious metal explorers and developers