I received a PM from Romeo asking about a post I have on the FWR board where I talk about a potential $1 share price for SPQ. I thought I would post my response.

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Hey Rome. Good to hear from you again.

How realistic is a $1 SPQ share price? Good question. And every answer you would get would be very subjective. Right? Depends on how much you've got invested; how much you're behind or ahead; how much you understand the 'play'; how and when the 'play' might be taken out; and how much you trust or believe in Neil Novak.

In my opinion the take-out share price will also depend on how quickly the present private placement is filled, and how quickly Neil Novak can get drilling. He's got lots more data on where he should punch drill holes on Big Daddy. If he gets more data from drilling, as suggested by the MICON technical report, then I see the eventual take-out share price much higher.

Raw ore vs. the refined product is another discussion point (as you pointed out). And of course, the percentage of chrome in the ore. I think the % values of all three major finds (Spider, Noront, Freewest) are among the best on the planet so, the cost of refining the product is reduced. How raw ore vs. refined product plays into the present and ongoing discussions with 'majors' one can only be conjectured.

Neil Novak wants SPQ to be bought out by the biggest bidder possible. That, in my opinion, translates into the highest possible share price. But he will string the bidding process out as long as possible. And I expect it will be somehow tied into the future of Noront. (I think Freewest will go its own way when it comes to bidding. As for UC, they may be too late into the game to get a huge appreciation on share price. But you never know. Jim Voisin thinks he might have even more chromite than all of the other three combined.)

All of these thoughts are of course mine, and therefore very subjective; but I think $1 is reasonable.

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Snug