We are getting to the stage SIH is being recognised by the...

We are getting to the stage SIH is being recognised by the market as a potential future producer, infil drilling results have beaten expectations & should more then likely confirm the current resource of 1.01mil oz, but we are far off trading at fair value,

Lets look at the worst case scenario producing:

SIH to produce 60,000oz a year & say a locked in GOLD price of US$1000 rather then current US$1240, producing costs of US$500 rather then US$442, that would leave a profit of US$500:

60,000 X US$500 = US$30MIL profit per year minus 25% that Antam owns = US$22.5mil profit per year X 10years

Now we use the $442 producing price from scopying study & $1200 gold price:

60,000 X US$758 = US$45.48 MIL profit per year, minus the 25% Antam owns = US$34.11 MIL profit per year X 10 years

Those numbers are assuming SIH makes no further discoveries & only mines what they have discoverd, now we clearly know SIH has multiple targets outside the resource to substantially increase the current resource.

So lets look at some future posibilities:

Once again will use increased producing cost & decreased gold price & then the producing numbers from scopying study & $1200 gold price, but will increase the ounces per year on potential further discoveries:

80,000 x US$500 = US$40 MIL profit per year, minus the 25% Antam owns = US$30 MIL profit per year X 10 years (US$1000 gold price used)

80,000 x US$758 = US$60.64 MIL profit per year, minus the 25% Antam owns = US$45.48 MIL profit per year X 10 years (US$1200 gold price used)



100,000 x US$500 = US$50 MIL profit per year, minus the 25% Antam owns = US$37.5 MIL profit per year X 10 years (US$1000 gold price used)

100,000 x US$758 = US$75.8 MIL profit per year, minus the 25% Antam owns = US$56.85 MIL profit per year X 10 years (US$1200 gold price used)


Also add a $75mil debt to get into production & remember Antam owns SIH 25% off all expenses made by SIH to get into production, so say SIH has spent $100mil with exploration & production costs, Antam will own SIH $25mil which 80% will come out of Antams first production earnings.

If I have done it correctly thats roughly the potential we can look at & thats being very conservative, not counting on higher gold price, lower producing costs & major new discoveries etc...


So taking all that in one would think at minimum SIH should be trading at around $100-$150mil market cap now or .20-.30 cents, sounds expensive when we are only at $70mil cap but the market looks ahead & prices in the the potential future.

If I have got anything wrong feel free to correct.

Dyor & dyor