Ann: Large gold target at El Palmar, work starts at Verde Chico, page-40

First 40 Last

Share
Profile

Follow
DAZZLE1979

476 Posts.

31

13/12/23

09:53

Post #: 71419127
Share

Originally posted by jdpc35: ↑

There are two valuation drivers for STM:

1. The Limon + Brama deposit. In-ground Oz valuations are difficult to pin to an exact number and you see quite a range. For example, this year we saw RMS buy BRB and their 1.7mOz resource for an implied $36/Oz, but then just months later they bought MGV with 927kOz for an implied $216/Oz. At 4mOz, Limon would be getting interesting, but if they can get it closer to their targeted 10mOz, then it will be on multiple radars and is heading into Tier 1 territory. My guess is that at 4mOz, then $50 is possible as a in-ground valuation (depends on the resource size of Limon and in near surface reserves) and at higher resource figures, $50 is definitely in the ballpark. The size / scale of Limon is the key as its cash flow drives capacity to develop the at depth resource.

2. El Palmar. In 2016, BHP made a play to buy 10% of nearby Cascabel for US$30m with an option to fund a further US$275m of development to earn up to 70%. This was off the back of some good drill results by SolGold (notably Hole 17 with 1.54% copper over a 150m strike). In the end, SolGold rebuffed BHP and went and did a further capital raise to keep going and is still working towards developing this asset. Of interest SolGold's share price whilst all this was happening in 2016 went from 1.5 pence to a high of about 46 pence! STM has made mention that the big guys are sniffing around El Palmar, interested in its nearology to Cascabel (both in terms of near location and similar geology). So, a couple of decent holes in 2024 and this level of big boy interest may throw up an interesting implied valuation for El Palmar (note copper price in 2016 was circa $2.20/lb vs $3.80/lb today).

Expand

In short, still worth the punt or Phenomenal upside potential

STM Price at posting: 1.5¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

DUR

Duratec snags $76.5M in works from Woodside and Defence respectively - including spy network upgrade

SDF

Steadfast Group sees $600M wiped off on resumed trades after Four Corners feature

GL1

Global Lithium latest hit by lithium downturn; shares fall -10% as Manna DFS paused

FBR

FBR's robotic home construction tech passes first US early-stage structural compliance check

FRB

Firebird snaffles Environmental Permit for Jinshi plant

There are more pages in this discussion • 3 more messages in this thread...

First 40 Last

Add STM (ASX) to my watchlist

(20min delay)
Last 0.6¢		Change 0.000(0.00%)		Mkt cap ! $23.11M

Open	High	Low	Value	Volume
0.6¢	0.6¢	0.6¢	$1.201K	200.1K

Buyers (Bids)

No.	Vol.	Price($)
19	9140907	0.5¢

Sellers (Offers)

Price($)	Vol.	No.
0.6¢	3766910	5

View Market Depth

No.	Vol.	Price($)
19	9140907	0.005
19	20981689	0.004
8	13337008	0.003
7	18450499	0.002
5	12001000	0.001

Price($)	Vol.	No.
0.006	3766910	5
0.007	8158888	6
0.008	13995291	3
0.009	1586200	3
0.010	6005436	12

Last trade - 11.15am 10/09/2024 (20 minute delay)

STM (ASX) Chart

Ann: Large gold target at El Palmar, work starts at Verde Chico, page-40

Duratec snags $76.5M in works from Woodside and Defence respectively - including spy network upgrade

Steadfast Group sees $600M wiped off on resumed trades after Four Corners feature

Global Lithium latest hit by lithium downturn; shares fall -10% as Manna DFS paused

FBR's robotic home construction tech passes first US early-stage structural compliance check

Firebird snaffles Environmental Permit for Jinshi plant

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: Large gold target at El Palmar, work starts at Verde Chico, page-40

Top Stories

Duratec snags $76.5M in works from Woodside and Defence respectively - including spy network upgrade

Steadfast Group sees $600M wiped off on resumed trades after Four Corners feature

Global Lithium latest hit by lithium downturn; shares fall -10% as Manna DFS paused

FBR's robotic home construction tech passes first US early-stage structural compliance check

Firebird snaffles Environmental Permit for Jinshi plant

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News