Time to revisit SNG and their Gold projects for me after Australia smashed the kiwis last night in the cricket
I think this Gold project is a LOT better than most Aussie projects - Kiwis win!
@Bazz58 - I like your comments and in my opinion you are spot on.
Bryan Rodan has been buying a truckload when he can and in my opinion this is more than likely due to a very Robust Scoping Study that is to come early next year. What is more important that adds confidence is WHO is on the board and their background together with Rodan's obvious links and bringing up/developing projects to production.
My brief after dinner back of envelope calculations (I have tried to be realistic and not too optimistic!)
Assumption 1: Gold USD $1600
Assumption 2: AISC: $800/Oz USD (I have derived this from Federation Minings projection from their presentation and added 20%)
Assumption 3: Total Ounces after recovery = 700,000
Project Value = ~ $500 mill USD
Project Capex (pre-construction + construction) = ~$100m USD
Assumption 1: Gold USD $1800
Assumption 2: AISC: $800/Oz USD (I have derived this from Federation Mining's projection from their presentation and added 20%)
Assumption 3: Total Ounces after recovery = 700,000
Project Value = ~ $700 mill USD
Project Capex (pre-construction + construction) = ~$100m USD
So in my opinion JUST with the current projection of Big River and Alexander River projects we are looking somewhere around 500-600 million AUD after NZ tax
Blue Sky material not discussed:More higher grades they find from consequent drilling,
Other tenement packages resources
Stibnite, Antimony,
Higher Gold Price!
In conclusion,
in my deeply uneducated view, I believe SNG with a marketcap of around ~$35m is a potential medium term t-e-n bagger
At the minimum bare level if we apply the quick principle of EV/Oz we get
$8m in cash = ~$27m EV
700,000 resource/s = a very lowly EV to Oz of under $40 for SNG
Whichever way you look at it, it is indeed a screaming buy and I wouldn't be surprised if this has a stellar run in the next few months (think $1-$2 party!
)
Disclaimers:Intention to hold until $1.5-$2 thereupon review of Gold macro conditions and Company's progress
Buyer average of around 37c
Was NOT involved in the capital raise
Would love to read others views and welcome constructive criticism
Thanks everyone and happy accumulating before the zoo arrives
Good Luck to us all
