This post has been de-listed (Author was flagged for spam)
It is no longer included in search results and normal feeds (front page, hot posts, subreddit posts, etc). It remains visible only via the author's post history.
Lets see how much you boyz really know. Maybe some of you who are newer will learn a thing or two.
Question:
There are two silver mining companies with vast cash reserves, nearly identical LT assets (mines), etc. However, company 1(one) has a low cost of recovery/oz, and company 2(two) has a high cost of recovery/oz. The difference is -- significant. In layman's terms, think of company 2 as having a lower margin.
Further, assume that silver/oz is trading at an all time low and assume no futures selling of silver by either companies, or any access to futures market.
Assume that the current /oz price of silver isn't profitable for either company and that they close their mines in a non-profitable environment.
Think of yourself as a hedge fund seeking exposure to silver as you expect a steady upward movement in the price of silver /oz.
If you can only pick one, which company's stock do you purchase? Why?
Subreddit
Post Details
- Posted
- 9 years ago
- Reddit URL
- View post on reddit.com
- External URL
- reddit.com/r/wallstreetb...