
TSE:SSRM
Silver has a very interesting seasonality. Its best period of strength is generally from January right through until about the end of February every year. However, it tends to reach a very important low right around this time and forms a kind of base pattern during November and December before taking off again.
Their business model was to pick up “out of the money” uneconomic deposits and hold them until silver prices went up. That worked really well. The problem with that model is you end up picking up projects that have problems. So far, on their project in Argentina, they’ve had a lot of problems with the metallurgy and the grade. It may be turning the corner and it may not. There are probably better silver vehicles to buy if you want leverage to the price of silver.