SAS.TO Comments ? Just a few small ones Ha Ha! I think it presents a compelling buy IMO for many reasons. Besides the obvious extension of Gray Fox Zone being traced south, with high grade results from SAS, there are other reasons to own SAS, that on their own would support the $90M EV
The Holt mill - Holt/Holloway mine is their bread and butter and thier expecting 90k cash flowing oz just from that. After the Royaltys, AISC is about $1040, not the best, but it pays the bills, PLUS CAPEX for the other projects and sustaining costs, thus allowing them to move forward without costly financing's. The Royaltys provided the path to this luxury, that no other good jurisdiction company with a EV less than $90M has. Remember, Primero bought Brigus that was weighted with the 8% gold loan where Brigus had to sell 8% of the gold to Sandstorm for $500/oz. How many extra ounces, did it take to pay for the loss of the extra cost, over and above the $500.
SAS Near producing Taylor, will produce 16k oz in 2015 4th quarter per the recent conference call. These are **Very** high grade ounces with very low, royalty, like 2% that will add 64k yr oz if you annualize it.
They have hundreds of millions in Infrastructure when you count Holt, Tayloy and Aquarius.
SAS has 3000 tpd milling capacity, more then they need. If Primero wanted to build a 3000 tpd mill it would cost over $100 million and take 1-2 years to finish
Don't know how current this number is because its a couple years old in my notes but SAS had a $190M tax pool that would be Very valuable to a profitable producer. Cant by very different now.
Largest land position Timmins 121sq km
About 700k in mineral Reserves and about 6 million oz (rough from notes) total including Inferred.
Currently they have $21M cash and a line of credit for $10 Million, They can cut CAPEX and use reserve cash if they have to survive an even lower gold price.
One of my favorites for quality jurisdiction, low risk, high future value return irregardless of any buy outs.
Checkmate28
