report

From Stock Resource
Signature Metals 11 Nov, 2009
West African advanced exploration play
SBL; Buy up to 3.5 cents
Signature is an African focussed company with prospective tenements in the world class Ashanti Gold Belt of Ghana. Its main project is the Konongo Gold Project which has an existing small plant and provides an opportunity for early production.
“Signature Metals represents an attractive low cost entry into the West African gold plays. It is entering a period of high activity which could lead to early production given the presence of an existing mill on-site.”
The Signature story is outlined below but it is worthwhile briefly reviewing the other West African plays and their recent performance. Members will recall that Perseus Mining and Mineral Deposits are currently in the Stock Resource portfolio.
The West African gold plays have attracted strong support over the last 12 months, particularly with exploration success leading to 1Moz discoveries, or in the case of Perseus, multi-million ounce discoveries. The following table outlines the enterprise value per resource ounce (where reported) for these companies.
M/Cap (A$m), Cash (A$m), Debt (A$m), O/ship, Resource (Moz), Ent. Val per res.oz
GRY $98 $10 $0 90% 1.10 $88
PRU $517 $84 $0 90% 5.20 $93
ADU $120 $21 $61 90% 2.10 $85
AMX $76 $5 $0 90% na na
AZM $51 $9 $0 90% 0.75 $62
BSR $51 $5 $0 90% na na
SBL $28 $3 $0 70% 0.98 $36
MDL $574 $23 $55