RE: why i don't hold SEA anymoreVery interesting Citron blogs. Citron Research do own shares in the stocks they talk about, so I'm not sure what their motivation is. Perhaps they are trying to talk the stock down to pick-up shares? As far as their allegations. Yes some of the SEA management do have a history. I think this lack of confidence is somewhat reflected in the SEA share price. I have a few comments on the Citron blog:
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1) Resource Estimate: With such a massive deposit, SEA have gone out of their way to have the second NI 43-101 compliant resource estimate completed. The results were released on March 15/2010 (after the Citron blog). This second estimate was completed by Behre Dolbear & Company. The Behre Dolbear report has confirmed the RMI resource estimate and even stated: "RMI's project-wide estimation of measured and indicated resources is conservative." This should allay concerns about the the validity of original resource estimate.
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2) Mineral Reserves: Claims that the SEA has no "Reserves" is also no longer valid. As stated in the news release this week, an NI 43-101 compliant Preliminary Feasibility Study concluded the KSM deposits have 30.2 million ounces of gold plus copper, silver and moly credits. NPV at 5% discount is $2.9 billion in the base case, rising to $5.6 billion at today's metal prices. The list consulting companies who worked on the PFS is quite impressive.
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3) Adjacent Properties: Silver Standard next door to Seabridge also has NI 43-101 compliant resources of 37 million ounces gold on the Snowfield and Brucejack. In addition, within shouting distance, junior Teuton Resources (& partner American Creek) recently hit an intersection of 241 m of 0.8 g/t gold, which is similar to SEA type assays. Silver Standard is a reliable producer and they are hitting all kinds of mineralization in quantities approaching SEA.
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In summary, while the Citron blogs are interesting, I think most of the concerns should have been resolved with the 2nd resource estimate and PFS. The general area is continuing to reveal deposits everywhere, so it appears the mineralization is there. In my opinion, SEA remains an excellent value at today's price. As always, please conduct your own research.