sbb
Bought a bit more sbb last few days.
There just aren't many precious metals stocks that seem very solid. I also like Rubicon and have a bit of Eastmain.
But SBB is just built like a tank. Close to $200 million cash on hand and a silver royalty that very conservatively should be worth at least $300 million net present value.
With a market cap under 1 billion, that puts the value of Back River at 400-500 million. That's 4 million ounces of high grade gold so that's about $100 per ounce. And they are drilling like crazy and have a track record of finding the pay dirt so they are liable to increase that further. It is in a remote location, but it won't be remote anymore by the time it is mined since infrastructure will be in place from development of Hackett River.
Xtrata now owns the challenge of developing the high capital cost Hackett deposit and Sabina simply owns a stake in the gravy once the thing actually gets mined.
Obviously there is no such thing as a no risk precious metals stock- when these deposits get close to mining some eco terrorist could come along and try to scuttle the thing. But the odds of that happening are very low since this is one of the most politically safe jurisdictions in the world and there is neither a local population that would be adversely affected nor is there environmentally sensitive land that would be disturbed.
I only wish I could find more stocks like Sabina.