OTCQX:GLDXF - Post by User
Comment by
Heywood_Silverson Jan 04, 2018 10:57pm
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Post# 27286652
RE:Now you should understand what i mean.
RE:Now you should understand what i mean.If SSP only had say a 5-6 mm ounce resource you would get no argument from me regarding the "hedging" which I believe you are referring to the Wheaton deal.
That deal is for 10% of the project's gold at $400 an ounce. Let's say gold averages $1600 over the life of the mine, this means that SSP only receives 25% of the fair value of 10% of their payable gold. In other words, they lose 75% of 10% of their total gold payable or about 7%. The total deposit size is already 10 mm oz, and with exploration they will easily shore up at least another 1 mm oz. So, if they "lose" 7% of 11mm oz that is still over 10 mm ounces or still an elephant sized deposit despite the Wheaton deal.
How many other juniors out there can boast an elephant sized deposit? Just a handful I believe. I understand the grade is only mediocre, but in terms of size it is hard to beat SSP. Once $1400 is broken en route to $1500 gold this baby will start to rock.