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Message: Re: PDAC
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Re: PDAC

in response to by
posted on Mar 10, 2010 02:57AM

Thanks for the post beaver65.

Wilst buying more SGR, what gets me is that these items are normally and simply displayed in a corporate update, but aren't. Superb.

I don't really understand the comments about the trading companies manipulating the price for their own gain or lower entry points, but is SGR trying to hide what it's got, like massive sulphide? additional ozs? even production predictions/plans.

Perhaps they want to get on TSX, and have a price explosion, so they can't be bought out cheap. There was a nice comment re a Dundee post, about target on their back.

On mcap per oz, presently US$285/oz....costs for SGR might be $250-300 compared with $400-500 for many other producers, giving them a comparable $150 better margin, and comparable mcap/oz of <$150.

To reach 100koz production for 2010 calender year, the chart has got to look something like this, finishing up with ongoing 150koz production rate at end of 2010. Not that I am counting on that happening. Hope they can.

production # POG # production cost # margin # years of supply?

50koz # $900 # $350 # $27m # 60yrs

100koz # $1000 # $300 # $80m # 30yrs

150koz # $1100 # $250 # $127m # 20yrs

I suppose, looking at that, production is the key, and beaver's post sort of suggests that has a reasonable priority. Best get a move on. IMHO.

looks like a ramp that would frighten evil knievel

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