Supatcha Resources Inc. (SAEI)

[rookiecrd1]

$8.99 Per Share According to New Article Atop Google News:

Take it for what it's worth:
http://www.usnewssource.com/headlines/supatcha-resources-saei-confirmed-estimate-of-over-19-million-ounces-of-gold-at-barlevskoye-and-vynohradiv-gold-property_15726.html

You know that saying “He struck Gold”? Well, those who own shares in Supatcha Resources Inc. (SAEI) have done just that. A few days ago we reported on the company which was set to announce the results of the first NI 43-101 compliant resource estimate for the Barlevskoye and Vynohradiv Gold Property in Ukraine. After the article we even got feedback from many angry investors telling us that our article was irresponsible, and that our reporting was debunk, after we suggested the stock should be trading in the dollars and not cents.

Well, this morning, when the NI 43-101 compliant resource estimate was announced as well as filed with the SEC, even some of the most optimistic investors were amazed at the results. Total gold resources of 5,439,000 ounces indicated and 14,318,000 ounces inferred were reported, meaning that Supatcha Resources Inc. is now a major player in gold mining.

Just how undervalued is this stock? It’s really tough to say, but after closing yesterday at $0.315, giving SAEI a market cap of approximately 19.2 million, shares are sure to rise. If we take a quick look at valuation models for gold exploration companies, we can quickly come to the conclusion that this company should be worth hundreds of millions of dollars more than what the market had been valuing them at.

Traditional models using current gold prices would indicate the following valuations for gold exploration companies:

$25.00 per ounce inferred by a 43-101 compliant resource estimate
$35.00 per ounce indicated by a 43-101 compliant resource estimate

Plugging in the recent numbers from the 43-101 compliant report:

14,318,000 ounces X $25 = $357,950.000 Market value
5,439,000 ounces X $35 = $190,365,000 Market Value

Estimated market value using this model would indicate that SAEI shares should be trading with a market value of $548,315,000. With 61 million shares outstanding as of the last filing, that would indicate a share value of $8.99. The model used of course is just an average, meaning companies can trade both above and below these valuations. However you slice it, this company is undervalued, and will likely adjust to recent reports throughout the coming days.