- SilverCrest Metals is one of the few silver miners that's down considerably year-to-date, with a (-) 20% return vs. its benchmark's (-) 4% return.
- This underperformance has little to do with the exceptional Feasibility Study released in Q1 and likely more to do with the stock digesting what was unexpected double-digit share dilution.
- The good news is that El Picacho and continued drilling success suggesting material upside to the current reserve update, which would push fair value much higher.
- However, even projecting a much larger reserve base, I don't see enough upside from current levels to justify paying above US$9.20 for the stock.
For further details see:
SilverCrest Metals: A Look At The Valuation After The Drop