moving towards productionhistory- this project required over $600 million of capital cost. in this challenging market for capital cost projects they decided it had to be retooled.
asmara has a npv of US$650 million pre-tax US $400 million after . an irr of 31% pre-tax 24% after.this case is using a 10% discount rate.with sunridge having 60% interest in the project. that is equivelant to after tax NPV of US$251 million to sgc shareholders while trading at the current market valuation of US$25.2 million.
the asmara project is poised for staged mining that will generate cash flow of up to CAD $0.28/share in a very rapid fashion. as others have pointed out a "cash cow".
the staged production allows for financing all the life of phase 3 mining operation with no equity dilution.
at current metal prices debarwa is worth over $950/tonne.
discarded napkin calculation shows the dso operation should generate $70-90 million in cash flow. i do not have the time to explain all the number calculations. understand what this becomes. when its all said and done asmara would have about $40-50 million left over and $15 million in bought and paid for mining equipment. it is imperative we continue to move with speed.
sunridge continues to attract the interest of larger mining companies in asia. the potential for a take over offer for sunridge should not be discounted.
know that the sunridge gold team members are 100 percent focused on bringing this to production. a buy-out offer has not distracted that in the least. the team continues to entertain interested parties to the project. 4 times current m/c would perk the ears of more than a few.
most of the above are near term catalysts. a re-rating of SGC shares seems most likely before ***** .
thats a embedded secret.
changing direction a european bank syndicate shows keen interest with this project. this group has visions of grandeur. think debt financing.
let me take this oportunity for a special mention . Michael Hopley Craig Angus Scott Ansell David Daoud and Greg Davis. these five men have out performed in their leadership tasks beyond what many will ever comprehend. you will enjoy the fruits of their labor.
this is by no means exhaustive. if you know how to reach me there is nothing encumbering me from sharing more in depth analysis.
permit me to make a correction mycashgoesohno. realsgctruthman was not privy to eritrean talks or officials. realtruth was present when we discussed certain developments along with listening in on several high level calls. he can divulge more with constraint as he sees fit.
okay boysngirls im out of here…..continued success to you all who follow doubelieveidonts excellent commentary as he will continue to keep you on the correct side of the trend…… and that in todays world is one hell of a result!
$CHEER$!