Adam Hamilton | April 29, 2016
...
The bottom line is silver miners were fundamentally strong even in silver’s grim trough Q4’15. Despite the metal’s major secular lows fueling hyper-bearish sentiment, the silver miners were still producing at all-in sustaining costs well under prevailing silver prices. This naturally generated healthy operating cash flows, feeding growing treasuries. The silver miners never faced the widely-feared existential threat.
But their stock prices plumbed deep secular lows, acting like these miners were on the verge of failure. Despite their mean reversions out of those anomalous extremes already being well underway, silver stocks still have far higher to run as silver recovers with gold. Silver miners’ profits should soar by an order of magnitude in coming years, resulting in similar fundamentally-righteous gains in their still-low stock prices.
Adam Hamilton, CPA April 29, 2016
http://www.zealllc.com/2016/silmsgq4.htm |
