Supatcha Resources Inc. (SAEI)

[StockWatcher]

Stervc, Excellent Post! Thank you!

I agree that this is probably worth the $25.77/share and here is why!!!

But let me add this back to you which I think a lot are missing.

Remember this post by me?

investorshub.advfn.com/boards/read_msg.aspx?message_id=56954749

In this post I translated the Article for everyone to read about the mine and that there are several barrels = tunnels down to 210 Meters. That is 630 feet for us challenged people.

And off of the three tunnels they have several more tunnels going out to different veins.

So what I am pointing out is that Supatcha may already be in a position to mine the Gold RIGHT NOW! And that is what I think people do not realize.

Here is the link to the article but I already translated it for you.

Mykolayiv Online Newspaper News N
address of the article: http://novosti-n.mk.ua/news/read/?id=25375

The fact that near Odessa is auriferous veins, few knew. Otherwise there would in the village of "The May" would have already been overcrowded by enterprising prospectors. And perhaps locality has become a city, and even capital.

In the early 1990's geologists have conducted reconnaissance, looking for nickel content in ore, and found gold. They found that in 2 "cubes" Savranskaya ore contains up to 7 - 9 grams of gold! And in accordance with international standards, it is sufficient 2 - 3 grams of the precious metal to begin developing the field.
In 1993, Ukrainian entrepreneurs were allowed to territorial development in accordance with the state program "Gold of Ukraine." Barrel was laid deeper than 200 meters and passed three galleries in several areas of gold-bearing veins. But soon companions quarreled and started to sue, having thrown auriferous matter.

Now this part here is key! Read Carefully!
- I worked at a mine in the department of labor protection, when her with a 1993 - 1996 were built, and dug a barrel, - told the officer Victor. We stopped at a depth of - 210 m, where the horizon should be the first. Gold was already possible to get. I kept a piece of core (a stone with geoelectromagnetic exploration), where even the naked eye can see tiny grains of gold interspersed with granite. At that time planned to build a railway, build houses for the workers. Very sorry it was when everything stopped.

At this time in Savran outbreak. People moved unknown virus. But doctors do not know what happens to them. Sanepidemstantsiya and commission from Odessa and were unable to determine the cause of the disease. Someone from the officials decided that the blame for mine. Although the background radiation is not excessive, there was no harmful emissions. It was said that gold is enchanted. Mistress of subsurface resources avenges begun production.

- I am one of those children who were ill, because of mine! - Says a local resident, Natalia. - For three days lying on a drip, unconscious. From Odessa and Kiev came to the whole expedition doctors. It was said that the poisoning. And then came all sorts of ailments. It was in 1997, as I remember. But then again several years later.

Almost 10 years Maisky mine nobody has. It arranged the workshop of welding, which operated only at night. One morning the inhabitants of Kirov Street did not find the usual multi-ton iron tower, whereby extracted ore from the mine. The kidnappers autogenous cut metal, rendered designs and taken to KAMAZ. A few hours later they were found sleeping in a nearby forest. They decided to wait for darkness and take robbed scrap. Before that they had already deposited in the collection points around 20 tons of metal structures of the ground tunnels. However, the case for them to start failed. Since the owners of the mines was not. Appeared only organization Ukrzagrangeologiya, which has a license to loot. But at the specified address in Kiev, it is also not found.

Local residents carried off the remaining metal and pulled down the wall.

And in June 2010, gold ore mine Mayskaya interested U.S. company Supatcha Resources Inc. The paperwork has happened fast enough for our state. Sept. 29, Americans have signed an agreement to purchase 98% of the gold mine in the May Savranskaya district of Odessa region of 3.5 million dollars. Businessmen are going to invest nearly as much. Create jobs and equip village.

However, the locals are not happy:

- Why do we have this gold, if you scratched the ground, spoil the environment, flood the waste. It would be better developed the tourist business. Forests in Savran good. There would be restaurants, hotels, motels and for people to rest.

The American company Supatcha Resources Inc. out of (Denver, Colorado) in addition to the Odessa has signed an agreement to acquire licenses to develop and Barlevskogo Vinogradovsky gold deposits in southwestern Ukraine. In Ukraine, the gold deposits are located in the Carpathian, Odessa and Zaporozhye regions.

[color=purple]Stervc said:

SAEI Gold & Silver Valuations…

The previous valuation post below that I had created did not take into account the huge amounts of silver owned by SAEI and was predicated upon SAEI gold only from the information that was publicly provided to derive the share price I indicated where it should fundamentally trade after they release their announcement of their NI 43-101 being completed and filed by 5 Dec 2010 as from what was PR-ed:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57157583

Within that SAEI Gold Valuation post above, there were some key factors that I mentioned and/or noted to presume that I will note again below to presume here with the SAEI Silver valuation too:

Quote:
Key Factors to Presume:
1-The factoring concluded within the gold valuation post above clearly mentioned that the $151.80 per share price would not yield such value in a single year. It was clearly explained how the SAEI total gold produced was yielded over a 7 year time frame. This is why I divided the $151.80 by 7 to derive the $21.68 per share price gold valuation for SAEI.
2-Used a 25% Net Profit Margin. With using a 25% Net Profit Margin, that means that there’s a 75% Net Expense Margin to cover all costs; jump started from their $10 million received in funding.
3-Used a 12 conservative P/E Ratio although could have used one higher considering the ”Basic Materials Sector” for where the mining companies exist currently has a 14.72 P/E Ratio as verified below:
http://biz.yahoo.com/p/1conameu.html
4-The data used to derive those calculations are speculative or ”potential/probable” until the NI 43-101 has been completed and filed. Then the data will be considered ”proven” for the SAEI gold and silver valuations.
5-SAEI must be real since they have PR-ed that they have received $10 million in funding and have started an 8-month drill program on 9 Sep 2010 while releasing Phase I and Phase II drill results. So it is very apparent that the required financing is already in place to have begun operations already.
6-The Earnings Per Share (EPS) was derived from using basic accounting procedures [color=blue][where Net Income ÷ Outstanding Shares (OS) = EPS] that will be filed within the company’s financials once achieved.[/color] This is what the fundamental assessment will stem from.
7-Under the presumption that there will be minimal to zero dilution as it appears that those financing SAEI have agreed to be paid through some type of royalty program and minimally from shares of the company in any significant proportion.



SAEI has reported within their website that the historic result at Barlevskoye and Vynohradiv for silver was 31.6 grams per tons of silver ("g/t Ag"). With the gold valuation above, I could have easily used the 20.89 g/t average for the 8 holes from the SAEI Phase II drill program that is still ongoing as we speak, but instead, I used the more conservative historic number of 3.6 grams per tons gold ("g/t Au"). So, here with this silver valuation for SAEI, I will use the conservative historical 31.6 grams per tons of silver that was used for the same location too.

Also, within that gold valuation post above, I clearly explained how I could have use 7 times greater the amount of tonnage used to derive the gold valuation, but again, I will use the historic and yet conservative 18,709,300 tons. So…

18,709,300 tons x 31.6 g/t of silver = 591,213,880 g/t of silver

As explained above in my gold valuation post… 1 gram = 0.0352739619 ounces

591,213,880 g/t of silver x 0.0352739619 ounces = 20,854,455 ounces of silver

Consider now that the price of silver is over $28.00+ per ounce as confirmed below:
http://www.kitcosilver.com/charts.html

20,854,455 ounces of silver x $28.00+ per ounce = $583,924,740 worth of silver

Now let’s use the 25% Net Profit Margin as I had explained within the SAEI gold valuation post above to derive the Net Income to be generated from silver:

$583,924,740 x .25 = $145,981,185 Net Income

Now to derive an Earnings Per Share (EPS), you have to use the following formula as I had also previously mentioned…

Net Income ÷ Outstanding Shares (OS) = EPS

Net Income = $145,981,185
OS = 61,000,000 OS

$145,981,185 Net Income ÷ 61,000,000 OS = $2.39 EPS

This is also huge. Now let’s multiply this $2.39 EPS with a Price to Earnings (P/E) Ratio to still get the share price for where SAEI should be trading based on its silver. I will use 12 as a conservative P/E ratio for the same logic as I had explained within the SAEI gold valuation post above. This means that the share price of SAEI, just based on its silver alone, ”could” fundamentally trade at the share price derived below…

12 Conservative P/E Ratio x $2.39 EPS = $28.68 per share value for SAEI

Remember, as like I had explained within the SAEI gold valuation post above, this amount is not captured over the course of one year, but must be divided by 7 to show that this is the amount captured per year over a 7 year time frame based on the logic I explained within the SAEI gold valuation post above. So this means that we must divide the $28.68 per share silver valuation by 7 to equate to $4.09 per share annually.

This means that from the $4.09 per share annual silver valuation here with SAEI, we can add the previously derived $21.68 per share annual gold valuation to get a combined ”silver plus gold” valuation of $25.77 per share.

This means that upon the release of their completed NI 43-101, SAEI should fundamentally trade at a minimum… $25.77 per share.

I have to mention again that in closing, please understand, I have done valuations on many companies and it meant nothing for where the company ended up trading or existing… good or bad. It is going to not matter what I post as any valuation, but instead, it will matter what the company execute with their business objectives of growth to confirm the ”potential” I have posted to exist. If SAEI does nothing to prove to the market that they are completing their goals for growth as I have posted above, then who knows where SAEI will trade. However, if they execute their goals as they have positively shown so far for being very much on track for executing, then I expect SAEI to trade at or above that price value I mentioned above.

v/r
Sterling [/color]