Snowline Gold Corp V.SGD

My Conservative Projection....

[tony1969]

MUST EFFING READ! We are getting closer and closer to that psychological benchmark of C$1 BILLION in market cap ladies and the random gentlemen that lurk here. Ok. Now I will be serious. This is my conservative/informed/amateur projection of how the main parts of our Valley PEA may look. Yes I am bypassing our 2nd MRE. Here we go: Considering Valley will likely have 9 to 11 million ounces (my semi informed guess) I will use 7.5 million ounces for my projections of LOM production. Now considering that those who know more than us from Sprott have given the first five years of production (have to be using the starter pit/higher grade) an AISC of $542 for year one and $440 for years 2-5 I will use double that or $880 for my LOM amateur projection. Sprott projects almost 300k ounces of production for year one and it looks like right around 570k ounces for again years 2-5. I will use 500k ounce of production per year. I am going to use a 15 year LOM (remember this is only for near surface OP gold at Valley) and a again my conservative 7.5m ounces mined at my $880 AISC for my projections. Now comes a VERY important factor in the formula. The POG. I will use a very conservative over $500 under spot price of $2200 US gold for my back of the back of the napkin study. Let's crunch some CONSERVATIVE numbers for ONLY (not including likely more ounces of very viable OP ounces and zero for ounces at depth which have yet to be determined at Valley) Valley near surface OP. Here we go. $2200 US gold minus $880 AISC = $1320 US. Now we will multiply those $1320 by 500k ounces. That gives us a YEARLY figure of $660m US. Now multiply $660m X 15 YEARS LOM and we get $9.9 BILLION US. Now go back and consider how conservative I have been with EACH and EVERY variable here. The AISC is tricky as MANY factors can influence it but man if gold can steadily trade (here comes another conservative projection) between $2000 and $2500 US (being that it is over $2700 now) in the next few years then these figures are VERY achievable. In conclusion. I am only using 7.5m ounces of near surface Valley gold that could EASILY throw off about $10 BILLION in cash over 15 years without factoring in likely more Valley OP gold and ZERO for all other 30 plus exploration targets and ZERO for anything at depth at Valley. I am just thinking of all scenarios and being very conservative on each. How much would you pay for this? Our public markets (I say markets because this thing seems to trade on several "consolidated volume" markets) says it is worth about $681m US today. I say is is worth at least 3X that using my basic conservative valuation calculations above. OK I'm done. Had to refill my drink twice while posting this. I swear I think more clearly this way (more relaxed) but my wife differs. Comments? Thumbs up for my sad ego? Going on a Caribbean cruise next week (I live in Miami so it's no big deal) gifted by my company for my now 13 years of employment. I will keep in touch. Let's rip higher next week. You never know what that drill bit will say...STRONG BUY on SGD...

 

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