I agree with your comments. I also own BGL and EMR. Brought BGL at 80c and EMR at $1.18 and also at higher prices. Sold some EMR recently but still own over 70% of my purchase. Owned GOR when it was 5c and then 10c and sold half at 65c and then the rest at $1.40. GOR has done nothing in the last few years.
All had quality gold assets - one cannot go wrong buying upcoming gold producers with quality assets. Will probably sell some BGL (eg 25% to 30%) later this year or next year after it has been in full production for a while. Will keep EMR as it will probably have 3 producing assets in a few years which will only result in a higher SP.
Playing the Lassonde curve with quality projects can work very well.
I am still a little surprised that there was not a takeover of BGL - I guess with a quality asset BGL's SP has always had a high valuation so prospective buyers were scared off by its high SP.
I think there is the possibility the same will happen with SPR as it has a quality project - as long as the SPR SP remains strong then a possible takeover is less likely. I doubt SPR SP will be impacted much by the Lassonde curve heading into production - however its full value will only be achieved after its hits full production.
If SPR was able to produce 100k Oz pa at and AISC of about $1,000 we are looking at at least $200m in free cash flow for 10 years at current POG. That l result in a valuation much higher than today's SP maybe even $2. If they produced 150k Oz pa for 10 years than a SP of $3 is possible.
One of the reasons developers sell at lower prices is the need to raise considerable equity and debt to develop a mine but in SPR's case that need is limited - it is possible they may just raise debt to go back into production but another equity raising is possible.
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I agree with your comments. I also own BGL and EMR. Brought BGL...
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Last
74.5¢ |
Change
0.005(0.68%) |
Mkt cap ! $822.9M |
Open | High | Low | Value | Volume |
74.5¢ | 76.5¢ | 73.5¢ | $3.650M | 4.877M |
Buyers (Bids)
No. | Vol. | Price($) |
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4 | 109250 | 74.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
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74.5¢ | 8425 | 2 |
View Market Depth
No. | Vol. | Price($) |
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4 | 109250 | 0.740 |
1 | 5000 | 0.735 |
4 | 103851 | 0.730 |
3 | 11000 | 0.725 |
7 | 57239 | 0.720 |
Price($) | Vol. | No. |
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0.745 | 8425 | 2 |
0.750 | 11950 | 1 |
0.755 | 4900 | 1 |
0.760 | 50000 | 1 |
0.765 | 2000 | 1 |
Last trade - 16.10pm 07/06/2024 (20 minute delay) ? |
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Last
74.3¢ |
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Change
0.005 ( 0.30 %) |
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Open | High | Low | Volume | ||
75.0¢ | 76.5¢ | 73.5¢ | 1053119 | ||
Last updated 15.59pm 07/06/2024 ? |
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