TSX:SRU.UN - Post by User
Comment by
Cdn_clipperon Oct 27, 2001 12:11am
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Post# 4338129
RE: 10-15 million oz.PGM's
RE: 10-15 million oz.PGM'sThe rumours I've heard are that it is multi - zone, although the new zones are not as prolific as the one that was announced earlier. I haven't heard any estimates on tonnage, but it is not too difficult to speculate on how much there might be. Take a look at the Stillwater site for how these reef formations work. (Athapap, can you add a little more detail here on reefs?)
My valuation estimates are based upon discounted cash flow models over a 15 year horizon using cost data provided by others. I think prices in excess of my estimate are simply not supportable. However, if we have an early "Buy Out" offer, I'm inclined to agree with Bert. It will be in the $5 - 7 (CAD) range. I think any Major getting us at that price is operating in a very opportunistic manner. If we have the option of shares or cah, I think I'll take the shares over. If the play is as good as we hope it is, why not participate in the upside with whoever the acquisitor is?
Anyhow, this play is about as credible as it gets. The company has plotted a very steady course, minimized the hype and generally delivered results consistent with their interpretation. I believe it is ready for a strong breakout (and I don't follow technical analysis).
CC