News

August 27, 2008

Buy Low And Sell High: Silverstone Resources Builds On A Winning Strategy, Although Its Shares Are In Need Of Some Support

By our Canadian Correspondent

Darren Pylot and his team at Canadian-listed Silverstone Resources have done such a stellar job increasing cash flow over the past 12 months that, believe it or not, the current dearth of capital available to small miners may actually turn out to be a blessing in disguise for the company.

Silverstone has a unique mandate. It’s a company that aims to generate cash flow through the purchase of silver by-product streams from existing operations while increasing its own resource base on the exploration front. From any given base metal operation the contribution from silver usually comes in at less than 15 per cent of the gross revenue, and companies looking for cash to cover production costs will often choose to sell the by-product silver to bring in early cash. With construction...