However, in addition there is one more which may be much more significant for SPR. Ever heard the saying a rising tide floats all boats - well that will particularly apply to SPR with such a quality resource.
Pierre Lassonde and Rick Rule late last year stated gold mining stocks are very under valued and the former stated they are 50% under valued (ie fair value is double the then share prices).
Roll forward 6 months and what do we see - POG up by 21% or $US418 and GDX by only 29% (see charts below).
But gold producers profits at prices this quarter to date will be up by circa 80% to 100% compared to the last quarter of 2023 - but gold miners SP only up by 29% - a total disconnect. That is gold producers are even more under valued now then they were 6 months ago compared to the gold price.
I have been carrying in about this disconnect for a while but seem to get ignored by posters. As Pierre Lassonde in a very recent podcast stated once the June and September 2024 quarterly profit results come out the share market will take notice and gold mining share prices will go a lot higher by end of 2024. Potential upside of at least 50% in 2024 and over 100% in time as gold miners are priced more at fair value which would mean a SP increase of well over 100% unless POG falls back a lot but almost everyone is expecting POG to go much higher than $US2,400.
SPR will see its SP rise as the SP of gold producers rise and SPR may even see a higher % rise than producers (developers and explorers are even more under valued than producers - have seen this comment from a few commentators over the last 6-12 months).
SPR Price at posting:
71.0¢ Sentiment: Buy Disclosure: Held
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