Ann: Surface drilling continues to unlock high grade potential, page-110

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.