@Goldhunter122.....big question....lots of variables to consider, many assumptions required....I am part way through preparing a response. Give me a couple of days...
In the interim.....
I will disclose that I have been building a position in SNG since the beginning of March 2021 and as at the time of posting, my average entry price is 0.39 per share. I did not participate in the IPO. My intention is to buy shares in SNG at a price which I consider to be discounted/undervalued by the market and hold those shares for the long term. I am a "value" investor also looking for "growth" opportunity.
My share purchases in SNG have been based on probabilities rather than a Net Present Value (NPV) or Discounted Cashflow (DCF). That is, I have formed the view that the "downside" risk of the SNG share price is negligible compared to the "upside" potential.
I am happy to quantify my subjective assessment.
"Downside" risk = $0.39 per share (bounded by 0.00)
"Upside" potential = $3.90 per share (1000% gain i.e. $30m market capitalization increases to $300m)
The above scenario is based on the organic development of one or more high grade underground mining operations at the Reefton Gold Project over a period of several years. It does not include any further strategic tenement or accretive mining operation acquisitions.
My confidence in the "upside" potential is underpinned by the following key elements:
1. Historical high grade gold tenements. Multiple highly prospective targets.
2. Management expertise.
3. Current Gold Price.
I have a question for you
@Goldhunter122 or anyone else that has a view.........Is it conceivable that an application for a "Globe-Progress Mine" Model Open-Cut would be supported/approved for either "The Big River Project" or "The Alexander River Project"? Would environmental constraints preclude this possibility?
(20min delay)