Great information! Thanks Ed.

Good article and I guess there are two approaches, one being acquisition costs for a takeover and the other being the stock price with forward speculation leveraged in. But the times they are a changing.

Acquisition costs in 2009 could change rapidly with the coming expected rush into gold and silver stocks. At this time it is almost as if these costs were stuck in a time warp…which may soon change very quickly. Valuation of the JPMs is way undervalued and almost at their lowest point in history and it is exactly at such times that they have exploded to the upside bringing 10 to 20 times multiples. Crazy but true. The share of a stock in a gold company is an option on a future ounce. So, what an acquirer got away with in the last year…and for the last many years…my well change dramatically in the immediate future and for some time to come as share prices rocket up for everything in the sector. So, as we move forward and shares increase rapidly, competition for acquisitions will really heat up.

But what is so strikingly unique with SFMI are those 300,000 above ground tons. If they are 1oz/ton or even greater, the profitability is amazing at gold $1000 already…and then what at $1500 and $2000 going forward…with incredible demand and reduced supplies. I realize I am being simplistic and somewhat redundant but we are heading into a bold new world for gold, silver and the JPMs. The leverage is going to be unbelievable going forward into next year. Acquisition costs for the above ground reserves are decidedly different from in-ground re funding cost, capital cost, development cost, etc. One ounce of gold today is $1040…so, as PMseeker figured, the costs were about $140 plus about $150 royalty (at $1000) plus $50 for lease and extras…still leaves $660/oz. plus whatever the price increases/ounce going forward. So at $1400 gold SFMI profit is about $1000.

Whatever happens…it will all be very positive.

The only caveat I have at this time is a suspicion that there may be one last sharp sell off in gold/silver and the JPMs before a quick rebound with gold reaching $1400 by Christmas. If so, all shares will be affected momentarily.