RE:RE:RE:RE:RE:new high in a big way Sarama Resources (SWA.v, SRMMF) is
our newest addition to the portfolio. We
covered it last weekend and emailed a flash
update on Wednesday with news of our
purchase. The company currently has an
enterprise value of roughly US$20 Million. It
has everything we are looking for in an
exploration play. Management has a track
record and is heavily invested in the
company. The company’s assets are in a
jurisdiction that is seeing increased M&A
activity and majors have a foothold in the
region. Also, Sarama’s assets have potential
from a size standpoint. Finally, the company
is quite reasonably valued at present. We
aren’t just saying it because we decided to
buy it, but this looks like by far the best value
on the board at the moment. It certainly has
risk but based on its low valuation and 5-10x
potential (over 2-3 years), its an excellent
speculation.