Well guess most of us are thinking is our move forward finally begining, support building share price rising, time will tell:
DIRECTOR BUYING
From the 18/11 TO 02/12 director bought 4.4mil on market roughly $440,000 worth, very rare to see such significant on market buying from a director in a small cap company, something the market should & possibly is now taking notice of.
HUTABARGOT JULU
Masive target which in latest presentation is being compared to MASBATE 7.7 MOZ DEPOSIT, still early days but drilling commenced with 1 rig late Sept, would expect rigs to be boosted early next year as SIH get a better idea of the potential, first drill results should be near late Dec early Jan
Infill drilling commenced late Sept with 1 rig & 2nd rig on its way around Nov, should complete late Dec/Jan followed by results, for the past year the focus was on infil drilling at Sihayo, Sambung hasnt been tested for some time so will be interesting to see if there is any significant results that shows potential to extend the resource, once infill is complete drilling will commence outside the resource.
Definitive Feasibility Study (DFS)
Depending on when Sambung infill drilling is finished we should see final DFS results late Jan/Feb, with significant improvements in operating costs targeting below US$600/oz, following that we should see Mining Permits approved, financing for the project & a date to commence construction likely around mid year 2012.
Cash In Bank
$10.5mil last update so by end of current qrt roughly $7mil, would expect raising around march-april, hopefully on the back of a significanly improved share price.
Share Price
We simply went way to far down & fundamentals was ignored, no support on screen, maipulation for months the market didnt bother to take notice, the last week we have seen support build, a breakout from the lows, selling deteriorate & the real SIH market take place where its hard to get stock unless you pay up, hopefully this will signal the begining of a major uptrend.
THE PROJECT - THE POTENTIAL
Indonesia Based, 75% owned SIH, 25% ANTAM
Sihayo-Sambung 16.3Mt @ 2.7g/t Au for 1.425 MOZ AU JORC
Market Cap: $85mil
Cash: $7mil (By end of qtr)
Mine Life: 7years+ not including future upgrades etc..
Average Production: 88,000oz per annum
Producing Costs: Sub $600 targeted on final DFS results
Plant/Construction Cost: $88mil
The potential, with 20+ identified prospects we havent even scratched the surface, the potential is there for multiple discoveries "Potential to define multiple new JORC Resources" as the latest presentation states, resource over time could quite easily double as SIH begins drilling targets outside & surrounding the resource, focus has been on getting SIH to construction/production with little drilling outside the resource taking place since the last upgrade, as the DFS comes close to being finalised SIH will have more time to start testing the potential outside the resource with the first stage already begining at Hutarbargot Julu any significant discoveries there can use the Sihayo plant, numerous other targets for copper/gold are yet to be drilled, a small drill program at tambang tinggi took place during the year & first results hit bonanza grades showing the potential is out there but significant drilling needs to take place to identify it.
Sum It Up
Been a hell of a year for SIH holders, market ignores anything announced & the sp deteriorated to unexpected lows, camp incident with the locals was a shock but directors since have taken major action to work with the locals establishing Agricultural Programs with the surounding villages.
The top20 has stayed strong with Summit & Mr Yaw continuing to increase there holdings over the year, director buying a significant amount on market is the confidence we needed to see.
Share price is breaking out after a long downtrend, first target is to see a move to .13-.15 range then follow up by filling in the gap up to .18, early 2012 on the back of positive news flow .20's is achievable.
Would be good to see some broker/insto backing & research reports released in the near term to get the market more aware of SIH potential.
Time will tell, been a tough year for us holding so hopefully this is the start of a long awaited rebound..
Always DYOR..
SIH Price at posting:
12.4¢ Sentiment: Buy Disclosure: Held
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