SAU has been analysed by the Gold Stock Data guy Don Durrett...

SAU has been analysed by the Gold Stock Data guy Don Durrett (who I subscribed to and invited to analyse SAU). I mentioned previously that i wouldn't divulge any details of his analysis in respect of his paywall and intellectual property. That being said - maybe his analysis can give me another angle to pursue. Anyway here goes (it's not much different to previous efforts);

Before starting I will, maybe to nobody's surprise, say that I rate SAU significantly higher in all metrics of our indepependant analyst. That could either mean that I'm wearing "rose tinted glasses" or......that my depth of research may be far greater than the one hour or so perusal that someone can expect for analysing one of several hundred stocks (or a combination of these two possibilities).

I mean - analysing stocks is so incredibly subjective. For example; I would have thought there a very few other junior mining stocks that have <50 million SOI and management hell bent on avoiding CRs like the plague. I would rate SAU very high in this respect. However, long term shareholders (pre consolidation) have been diluted. They would have a very good argument that their share holdings have been substantially diluted. However, I have only known the company under Simon Mitchell's stewardship - so I rate this category highly. I think of SAU as being transformed into a vastly different company after emerging from its previous failed business model.

Also there's many analysts out there that think that Novo Resources has found the other half of the Witwatersrand deposits in our Pilbara region. Quentin Hennigh is reputed to be one of those world's greatest Geologists, so who knows, maybe he's on to a 1-2 Billion (with a B) Oz deposit.? The market is pricing Novo like it's already been proven. There's been not one drill hole yet though. Novo is valued at ~60X what SAU is. That's a hell of a valuation spread, especially when SAU could easily end up finding more ounces than Novo will, IMO. Finding 5-10 million ounces in SK seems a far more likely possibility than finding the next Billion ounce deposit.

I also came across an Queensland spec gold company called Citigold. Supposedly this company has JORC resources of 11 MOzs Au at 14 g/t (cut off 3g/t) a Mill, a possible 100 000 ounce forward sale to the GLD ETF and a similar market cap to SAU. Too good to be true ?? Yes, too good to be true, IMO!!! You start digging with some basic due diligence and things just don't seem to add up. I wouldn't touch these stocks.

I also wouldn't touch stocks with major assets based in banana republics (no Australia or South Korea ain't that). I wouldn't touch stocks that have huge share dilution, cash starved or just hoping to be taken over.

SAU is a really solid company compared to many other of its peers IMO. Unfortunately not many others see it my way. The divvie was great. However, no market reaction. Yawns too about the likelihood of Cannon UG and hitting Quartz veins at Weolyu in the 3rd hole. Good drill results from Cannon and Weolyu have not been "priced in" by the market, it's fair to say.

I'm a little on edge about results from the current Weolyu and Cannon UG programs. In all likelihood they'll be good and perhaps very good. There are so many other things coming down the pike too. If we can only get some decent drill results now, we'll be very well set up for the next couple of years.

Getting some hard JORC numbers and drilling results are going to eventually get this market excited. In the mean time, SAU are probably not going to have the benefit of the hype that many other companies enjoy. It's going to be a matter of continuing this sound business model of monetising smaller deposits and then hunting for elephants. Cannon's near term cash flow possibility is key atm. I'm crossing my fingers for success on this one.