Snowline Gold Corp V.SGD

My Perspective

[AlwaysLong683]

SGD's current market cap is 658M, not counting all the cheap, outstanding options and warrants yet to be exercised.

For all the land they've staked, they only have one zone to date (Valley) that looks like a winner.

Some investors think the more land staked the better. What they fail to consider is the more land you stake, the more money needs to be spent drilling those properties hoping to find another deposit that can be profitably mined. If not, the land isn't worth anything to a potential buyer and the money spent on that drilling is down the drain See SIC and NFLD for companies with loads of land yet little to show for it - true, SGD has Valley, but my point is more land does not necessarily equal greater company value and can if fact hurt, not help the company's valuation if they can't convert the new land into significant discoveries.

Any potential buyer will also take into account how much money it will cost to get to first pour over and above what they pay for SGD itself, what the state of interest rates, inflation, etc. are at that time, and so on.

I think the story ends with BTO taking out SGD in a couple years' time. At what price per share is anyone's guess.