Completed Pre-feasibility Study for Santa Elena Project

SIDDHARTH RAJEEV, Fundamental Research Corp. (11/28/2008)
"We are pleased with the company's work in advancing the Santa Elena project toward production. Based on our revised valuation models and review of the company's progress since our previous report, we reiterate our BUY rating on the company, but lower our fair value estimate from $3.00 to $1.98. Our fair value estimate reflects upside potential of 570% from the current price. The following risks, though not exhaustive, will cause our estimates to differ from actual results:
  • SilverCrest's success is dependent on the management and development of its exploration projects and putting Santa Elena into production.
  • The success of drilling, expansion and increasing favorable resource estimates are very important for the company's future prospects.
  • Delays may occur to the Santa Elena project if financing is not received as expected.
The company has not yet achieved production at its Santa Elena project. Therefore, we continue to rate the company's shares a Risk of 5 (Highly Speculative)."

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