RE:RE:RE:RE:RE:Santo Tomas Cash Flow Analysis Part 2 - Watch and think cringe. You guys are becoming more and more like the GameStop cult.
Setting a floor thats a multiple of the current share price (There are no floors in the stock market especially in junior mining lol)
Worshipping your Oracle who got in way before you and who already made himself a multi millionaire off of it.
I'm still yet to see any insiders or people promoting the stock buy the dip on this "great news" they claim it is. I’m not talking 1k shares or some little amount ether, a six figure buy from someone would shut me up on this though.
Solaris Resources is up over 10x in the last 18months. 1.6B Market Cap and the biggest shareholder just bought over 2 million more in shares just last week.
He’s already way wayy up on his initial amount of shares in a short amount of time. Why do you think he would buy a lot more at a much higher valuation?
Because he thinks its going a lot higher and that it’s still a good deal.
Also future cash flow analysis is interesting to do, but I think it is a very poor way to value a junior who is specifically looking to only be acquired.
Using stats from previous M&A is a much better to way to predict what a buy out could be, or maybe try comparing Oroco's valuation to other explorers and you can see why its not that appealing at this price.
here is an example, OCO compared to SLS. OCO market cap is 400m, SLS is 1.6b.
OCO historical resource is 2.3 million tons and they are hoping to grow it to 7-10 million tons.
SLS is still exploring its warintza resource which was historically inferred to be 124 million tons and indications are it will be in excess of 1 billion tons and at a higher grade than Santo Tomas.
In Oroco's favour they do seem to have great local support and the warintza project does have a small group of the local population who is strongly opposed to mining the area.
Some other things to note are Ecuadors mining environment is much more favourable than Mexico, SLS already has majors like Lundin involved which de-risks the project a lot and they have 50m in cash.
Anyways, do some analysis on that and tell me which one you think is over/under valued.
p.s
I wouldn’t be so mean if the people promoting the stock weren't so arrogant while giving poor financial advice to their sheep, they make it seem like this play has no or very little risks and everyone will at minimum double their money from todays price.
The “Stop f-n panicking” line in an angry condescending tone, all while having a cushy 100 bagger margin of safety, millions made from PP’s that have been put into other assets and refusing to add any to his position, is what compelled me to write this.