Cruch time...., page-74

Many posters are not happy with the low SPR SP echoing Simons views. There is a brighter side to this as it may be a very good time to buy more shares. These are some of the reasons I suggest explain the languishing SP:

1. Freak results were disappointing but that may or maybe not be a hiccup
2. results other than Pepper were ordinary but that does not mean they will not find any more high or reasonable grade deposits outside NN, Pepper, WW, etc
3. Lack of news which Simon mentioned - yes but with so much drilling to come that will change rapidly with a lot more assays from quicker drilling than we have had in the last 2 years
4. delays in announcing a reserve and the PFS/DFS - this has created a lot of uncertainty with investors but these investors have not read the MRE announcement closely nor probably spoken in depth to SPR management to understand the information released in the MRE updates.

If the next assays are good (ie not like NN/Pepper grades but reasonable like 3-4g/t from WW and Freak) we should get a bounce up in SP and if the good results continue more of an uptick in SP may eventuate. But if we get results like NN or Pepper the uptick in the SP will probably be even better. WW assays indicate the deposit is a lot wider than NN and Pepper so while the grade may be lower it may contain a lot of gold. Drilling to date is not that deep.

Outside drill results the big SP catalyst is likely to be the reserve and DFS/PFS mid year (unless they defer it but I now think that is unlikely). Declaring a reserve of circa 1.7m Oz at a very high grade with an AISC of $1,500 or even lower and a production for 10 years of circa 200-250k Oz will set SPR apart from all other gold stocks. In addition we will see an updated MRE which should exceed 3.5m Oz and may even get close to 4m Oz. If these numbers pan out with a margin over AISC of $3,000 per ounce then SPR will look really cheap at current prices relative to other producers and developers even allowing for execution risk.

I will also add that gold stocks are as cheap as they have ever been and that was to change then SPR and all gold stocks may be re-rated significantly or even substantially.

My own view is that this is may be a good time to buy (there have been better times though) but DYOR as you may disagree. Warren Buffet's well know comment "wealth is transferred from the inpatient to the patient investor" seems appropriate for SPR ATM.