Gold and macro environment, page-16

@deserthead I know you believe we have just entered a gold bull market. I view gold producers as a group as being significantly under valued including RMS and expect significantly increases in their SP's going forward for reasons in my previous post.

Most gold developers have seen quite limited SP increases to date with SPR the exception (this was noted by MoM recently). SPR SP has risen about 80% since early May ie since the recent CR. I regard the reasons for this substantial out performance being TO speculation, promotion in the media (eg todays Barry Fitzgerald article) and continuing great assays from NN and now Pepper plus in the past few weeks including today somewhat FOMO. SPR is really due for a pullback but that may not happen if the POG moves higher and the MRE and reserve are great.

While others may disagree I am not a buyer of SPR at current prices and have changed my sentiment to hold in recent weeks.

I tend to agree with @deserthead views on the value of RMS vs SPR. There is a lot of built-in expectation in the SP of SPR of a TO and great MRE and reserve and if either disappoint then the SPR could retrace significantly. SP pullbacks are very common in all stocks that rise a lot.

However, if the reserve is a high proportion of the indicated resource -ie say 800k Oz to 1m Oz or 80-90% of indicated, SPR will be significantly de-risked. In the current gold market one cannot rule out further significant SPR SP gains if the reserve is very high. And if SPR finds another NN or Pepper below WW, then the SP will probably rise significantly.