Very nice presentation with quite a bit of potency to it. The...

Very nice presentation with quite a bit of potency to it.
The flight to 400k p.a is a nice solid target for the SAR team.
Current mill capacity is 5mtpa currently, but... I wonder if they are contemplating an upgrade to one of the plants. 1mtpa would basically add at least 50-60k p.a if they have the reserves to justify it.
That is the internal side of their plans.

I still get the feeling that SAR wants to do more. They have a very skilled team for developing mines, but... no new mine. The sector is well and truly unloved right now, except for the likes of NST, RRL, EVN, SAR, SBM. Out of those, only NST has continued to buy up assets or, buy into projects, i.e, Bought a plant of WGX, just bought more of TAMs Tanami plant, bought 20% of EAR (which has a plant). Everyone else is hording cash, scared they will make the mistakes of the last boom. Yet... already, they have IMHO, missed much of the mistakes made. Anything being bought now is not the top of the market, or overvalued...

There are a couple of options for SAR, I am guessing they would prefer to have another mine relatively close to their current plants, which only really leaves EAR and BLK with plants (I suppose, KIN with is half plant). Or a little further afield you have GCY/DCN and perhaps CMM?

Going through the presentation, SAR has approx $140m planned spend on capex and drilling (obviously the drilling could be curtailed massively for whatever reason. Then they have a $150m debt facility, so current liquidity of $270m. The cash of $118m basically covers the planned capex/exploration, so.... what will they do with the $185m free cash flow earned in FY19 (330k at AISC of $1100, rough profit of $550 per ounce).

NST goes on and on about its return on investment, but... I feel that is a little misleading, as they keep buying up assets and into projects.... Hopefully SAR shows it has a calm head, but... not blinded by others who made rather stupid mistakes 10+ years ago with stars in their eyes.

SAR could easily be a 500k producer with just one mid their mine added to their production profile.

Looking forward to what SAR decides to do.