I think its important to view this transaction in terms of the opportunity it presents to attract much bigger players to invest in a multi billion dollar entity. The relentless printing of money going on all over the world elevates gold to number 1 position when viewed as a currency. The bigger players are happy to get the benefits of the defensive qualities of a company like merged NST/SAR and happy to accept a smaller yield. This means a PE of 40 should be maintained. I see SAR has a current PE of around 30 and NST one of 40. I cant be bothered doing the math but it seems to me that all will benefit from the status of being a top 10 Gold producer. I think its a very positive thing at this moment in history and at this point in the economic cycle. I see SAR safely getting to $6 by merger time.
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STRATEGIC ENERGY RESOURCES LIMITED
David DeTata, Managing Director
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