q2 2014

Given the SP is now 10c, I think punters should be addressing their concern/disappointment to management rather than arguing between themselves

As I've said, I do not believe the SP is at all time lows as a result of poor assets or something fundamentally - it is because of extremely poor communication to shareholders and IMO, operating/running SOC as though it is a private company

I am dumbfounded how you go from reporting 800m+ @ 1.3g/t and encountering a world class intercept at 24c per share, to a low of 10c only 6 months later despite numerous additional exploration successes during the period

Although it has been said to death, the assets here are worth considerably more than the market is valuing them, and I believe the market is substantially discounting the assets due to the lack of communication and likeness of it being run like a private company

Even conservatively, the success PMR has demonstrated at Gibsons Lode saw comparable values of up to $60M on other stocks such as ADN - effectively SOC's 80% holding in that alone should be worth more than its entire market cap

Likewise for the $21M spend of Jiangsu across 10 tenements for a 30% farm-in - effectively that values the tenements at $70M - again a multiple of the current market cap

Then there is the suite of 100% owned assets such as EL6483 which has huge potential

If you were to go to market tomorrow with:-

- Mt Adrah asset farmed out at an initial valuation of $13M with 5 high priority 3DIP targets to follow up and a world class intercept of 800m+ @ 1.3g/t in one target and bonanza grades at depth in another;

- 80% of PMR with exceptional historical grades, further validated by recent drilling success at Gibsons lode, huge parcel of prime estate around Halls Peak / Broker Hill;

- a JV with Jinagsu to spend $21M this year drilling 10 tenements for a 30% farm-in

- the suite of other 100% owned assets

I very much doubt you would be offering the IPO at today's valuation of $16M. Actually, looking at it like that, it is extremely attractive and you would think $30M or thereabouts is reasonable or somewhere around the 25-30c mark

However, us and the wider market have no idea on the status of most things and therefore aren't attributing any value to them

This could and should turn around on a dime if they update the market properly, giving a status on the things that matter being Mt Adrah drill program, PMR results and the Jiangsu JV

Fairly disappointing given the huge prospectivity they have just sitting there waiting to be tapped in the likes of the Castor high grade reefs, the PMR sedex and getting Jiangsu to move to binding MOU's and expedite drilling