egate,
IF SBL can prove up substantial resources WITH a high enough grade, I don't have major reservations that they will be able to produce 100K ounces per year without substantial additional capital expenditure. However that's a fairly big if. I am gambling that it will happen, but I don't think it is wise for anyone to be basing valuations on statements from CEOs regarding their future target production levels without substantial facts to back those targets.
The CEO of SBM (for example) had long term targets for tripling or quadrupling gold production through "exploration or acquisition". SBM has one of the highest production costs of any local gold producer and it has lost over 30% since November due to production issues. I owned SBM and sold before the production problems as I only held SBM because it was highly geared to gold price rises but I didn't ever really believe in the company, so it was the first gold stock I sold when POG started looking a little shaky. Just providing some background because SBM promoted a forward looking increase in production which was very large but completely unsubstantiated. I don't think that is what SBL is doing but I still do not like it when companies emphasize targets which, lets face it, might as well be 500 thousand ounces per year...
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