with good capon lined

Analyst Bored to Death with Bullshit Junior PEAs, Silver Bull Resources (SVBL) (SVB.to) edition

A chart:

Silver Bull Resources (SVBL) (SVB.to) announced the results of its PEA study on the Sierra Mojada silver project in Mexico this morning. And sadly, yet again we’re forced to wade through a whole page of “optimized” (i.e. stupid) financial assumptions so that the company can justify an eye-catching headline number. SVBL hasn’t received the memo that’s been going around, the one that says that people who pay your oversized executive salaries are sick and tired and bored of bullshit PEAs. What SVBL gave us today doesn’t attract anyone to the project, in fact it’s quite the opposite. You might be able to pull the wool of the eyes of the mouthbreather end of the market, but anyone who can use a calculator is going to give it the once-over and think “Me no give moolah to bullshitters. Me no sponsor people who fake it from day one. Me no fund another bunch of junior scallywags. Me burned too many times by this kind of crap.”
Just as one example, Silver Bull decides to use U$23.50/oz for silver and U$0.95/lb for zinc in its base case, and then after applying a 5% discount gets a headline-making post-tax IRR of 23.1% whereas me, I use a real base case of TODAY’S FUCKING SPOT PRICES and finish with a 14% IRR, even before laughing at the 5% discount and remembering how serious companies will use 8% disc. Fuck your base case, you bullshitters.

Or maybe you’d like me to tell you how I really feel about the subject.

UPDATE: IKN goes into public service mode by happily  receiving the hatemail of the mouthbreathers so that you don’t have to. Keep ’em coming guys, I need as many laughs as possible on days like this.

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