Such a great post Prisoner and as I do some housekeeping to ensure I don't lose sight of the forest from the trees..... like... knowing that Dalgaranga has another 10 years before it needs to undertake any sort of negotiations with anyone regarding it's mining license (as recently the W.A Gov has been notifying miners that in the future they are going to need to be securing all stakeholders agreements....... Miners’ alarm at native title rule for what it's worth, I have been doing some digging into all my miners to ensure at least this potential pothole is not in the way). Not in any way implying SPR won't be able to renew their ML in the future, I am sure they will, but... just increases my own security that it's not a headwind in the medium term.
Then... when I review the past (cannot help myself).
Almost $200m was spent on drilling, permitting, studies, capex, pre-production to get GCY into production.... and they lost it all and more even though ploughing in over $700m+ in mining costs... the gold was sold... the only latent value when Simon and his growing crew took the helm was the plant infrastructure and the time cost to get it all in place (just another reason why focusing on the dirt in the ML is key in the near term.... anything they can discover can quickly go in the mill, permitting is as I understand it... an incredibly slow, laborious and costly exercise).
Even just having the TSF capable of expanding to 23mt gives SPR a 10-20 year runway for production (at around 1.2mpta).
So when I re-read a few posts that are so focused on getting into production, whilst I understand.... being a profitable producer right now is a incredible outcome, being a successful, long-term profitable miner is the holy grail.. that I am after.
Dalgaranga is likely to be producing for a minimum of 15 years (it will be low cost and will ride out whatever is to come), which makes it all the more imperative to get everything as right as one can now (so very appreciative that Craig is handling that part of the business, he knows how to do things the right way and his past experience has also give him clear insight on where others have... made mistakes (I won't name the company, but for those with a little bit of sleuthing abilities, you can work it out).
While I don't just hold SPR, I am incredibly luck to have it as my core position and... it will take something cataclysmic to change that. The best in every industry always hold the most, in the best (it's sort of that simple). Not saying there won't be further bumps along the way... that is just the market.
So interesting to see how few stocks are still on this list from 2012 (a GCY presentation slide....), or... is it even more interesting that the valuations have changed dramatically for producers, but not explorers... most relevant for SPR, is how some developers are close to the same valuations as producers (at current metrics... because there are so few developers or assets that could actually be developed in a period of time that investors can stomach).
As you say Prisoner, things could have gone a hundred different ways to get this point, yet here we are.
Looking forward to seeing the next update on the U/G development...!
Good luck to all holders.
SPR Price at posting:
$1.59 Sentiment: Hold Disclosure: Held
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