re: valuation of smm? / some preliminary numbers
Last year they hoped to double their resourse to 150 mill lbs; if so, at US$41/lb and A$=0.74, we get a total of $A 8,310,810,810 (About $A8.31 bill) InSitu.
However, the U price is increasing.
1. INSITU VALUE PER SHARE. There are 188 mill shares. thus the inSitu value per share is A$44.20 and rising.
That is excellent IMHO with a premium for increasing U prices.
2. MARKET VALUE PER A$. The share price is $1.49 or total market value=A$280.12 mill. or per A$ spent: A$29.66. another nice number.
GOLD VALUE: 10.25 mill ounces. Cost Per Ounce $27.32, an excellent low number.
3. Simple InSitu value/tonne: Assuming a grade of 1.7 lbs/tonne, that will be $A94.1 /tonne, another excellent number and rising. (That is about 4 times the adequate minimum needed)
Summary: Assuming approval to mine is given, there is plenty of "slack" in the current share price for it to rise:
Re item 2, the Market Cap per share is A$29.66 but A$15 would have been sufficient. The price per share then changes to 29.66/15*$1.49=$2.95 but that would be an initial price with adjustments and added premiums later on, once approval to mine was given IMHO.
I need to get data re thoughput and costs, but the situation looks good.
I am familiar with SMM, having first bought in for 12 cents/ share on 20 Oct 2004, but had to sell most last year due to stupidity of the QLd Govt. Bought back for 87 cents and hoping to stay with it.
That is my opinion,
Subject to audit,
Gerry Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.
SMM Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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