1. Limited exploration and production experience - Silver Dollar Resources Inc is a relatively new company with limited experience in exploration and production compared to its peers. This lack of experience may limit the company's ability to identify and develop profitable mining projects.
2. Small market capitalization - Silver Dollar Resources Inc has a small market capitalization compared to its peers, which may limit its ability to attract investment and finance its operations.
3. Limited financial resources - The company has limited financial resources, which may restrict its ability to invest in exploration and development projects, and compete with larger mining companies.
4. Dependence on a single project - Silver Dollar Resources Inc is heavily dependent on its flagship project, the La Joya silver project in Mexico. Any delays or setbacks in this project could have a significant impact on the company's financial performance.
5. Exposure to political and economic risks - The company operates in Mexico, which is known for its political and economic instability. This exposes the company to risks such as changes in government policies, currency fluctuations, and social unrest.
6. Limited diversification - Silver Dollar Resources Inc has a limited portfolio of mining projects, which may limit its ability to diversify its revenue streams and mitigate risks associated with a single project or location.