reserves upgrade due shortly, page-6

Interesting reading from Macquarie Equities report on the Australian Mining sector (published today 19 Sept 12) regarding valuation of gold producers.

Essentially, they state that valuations have been tracking near historical lows of 0.6x net asset values to 0.74x NAV and that this could re-rate to 1.0x NAV based on the recent Fed action on QE3.

They recommend a number of producers including EVN which has a suite of projects with cash costs >$850/oz.

However, MEL do not cover SAR, so I reckon they might be missing a good opportunity if you apply the same logic. As stated previously, an uplift in reserves will be positive for the NAV (NTA) and, coupled with a re-rating by investors, could lead to a significant double-whammy benefit to the SAR share price.

Unfortunately I cannot reproduce the MEL article as I only have a paper copy.

Good luck to all.