As you said Plough, BC8 and MEK are cheaper for a reason. Comparing MEK and BC8 with SPR is like comparing a Ferrari with a Kia and a Hyundai. What the average punter doesn't seem to realise is SPR high margin ounces have been estimated to net over twice the average profit margin per ounce mined. Not only that, thanks to the sheer scale of our two main high grade ore bodies, SPR average high-grade resource to reserve conversion ratio is likely to be over 25% higher than average (75%-85% compared to 50%-60%).
Converting just Never Never's and Pepper's Indicated resource inventory into reserves using a 75% ratio = an initial HIGH MARGIN reserve inventory of 1.4m ounces. SPR projected EV to Reserve Ounce ($1,270) sits miles below OBM ($10,592) and RRL ($1,725) Is SPR ridiculously expensive??
RMS Price at posting:
$2.20 Sentiment: Buy Disclosure: Held
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