STTCOMP NIU FA Long
Gold and Silver producer with Tin/Tungsten assets
m/cap- $11.8m
Independent asset valuation- $12m as at 2013 (subsequent maiden jorc on tin assets and maiden jorc on gold in progress)
shares on issue- 1.475bn
Top 20- 74.6%
free float- 373m (tiny for lines of stock available)
share price- .008
They procured key infrastructure to increase production rate. Its positioning itself to increase throughput of ore through its plant by over 600%. With new infrastructure in place, it is anticipated Edie Creek will scale up to run at +40tpd – a 3.0x increase over June’s record production rate.
Now they did indicate the reasons for the equipment upgrade were to ensure they could operate profitably at lower grades. Though they did not say lower grades would be forthcoming. Probably more a hedge in the event the grades drops off.
Break Even Production costs at Edie Creek is 76 oz/month.
Increased production expected to bring in 200+ oz/month.
At current gold prices, that gives $2.5m cash annually after costs!
But let's do the calculation based from Average grades over the last 18 months.
Average Grade is 11.74
Processing expected to be increased to 40t/day = 1200t/month
Let's do some calculations based on different grades.
Annual Cash after Production at Average grade... $7.9m
Interestingly- I got stuck in a raise with this.....but raise announcement is as interesting as it is shrewd.
The SPP is based on the price in a month, with progressive drilling results and production numbers (which are running at records) due in the meantime.
So sure, I can take up stock at 20% discount based on the 5 day vwap in a months time, but what will be the share price then? So I made my mind up to add some more today .008 because my gut says the $15k maximum allotment (which I am confident will be very scaled back) is better spent now, and not in a month. So DYOR on that one
graphs compliments of @NewToItAll (clever cookie)
dyor crunch crunch crunch and do it again they say never look a gift horse like this in the mouth...but I did on this one
Thanks @FixItDad for EMA chart 100 & 200 day (another clever cookie)
