TSXV:STU - Post Discussion
Post by
Wisee on Oct 22, 2021 2:27pm
STU - A 10 Bagger Potential
Why I think
$STU has a 10 bagger potential...
They have the old Adanac moly deposit within their Ruby Creek Property – it’s a world class deposit and it was permitted, fully funded and the mine was under construction when the 2008 financial crisis ensued and killed the price of moly. The price of moly has been on a bit of a tear over the past year and presently the in-situ value of the historic resource is north of CAD$10 billion. The former operator that was bringing the mine into production was Adanac Molybdenum – at their peak they had a market cap in excess of $250 million – compare this to
STU which presently an enterprise value in the range of $11.5 million as they only have 24.1 million shares outstanding with $2.5 mil in cash and no warrants outstanding… Now you can see why I like it. They are also finding some noteworthy silver and gold within the same project but these are early stage vs the moly which is as advanced as it gets without being a mine.
If they are able to sell their moly project for even 1% of the in-ground value – the stock would go up 8-fold from here. Typically a project like this would garner a market value that’s 3% of the in ground resource…
Nice to also see that Eric Sprott has participated in all of STU's recent private placements.
Wisee
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