Sunridge Gold Grandichs Largest Self Position
posted on
May 03, 2012 12:09AM
Edit this title from the Fast Facts Section
Sunridge just announced the results of the Prefeasibility Study on the Asmara North Projects in Eritrea. The Study shows an NPV of the project to be to be $555 million, with a 10% discount applied ($1.642 Billion with 0% discount)! I believe this has far exceeded everyone’s expectations. It’s hard to imagine (but in this grueling bear market in junior resource stocks who knows) that this can’t result in a re-rating of the stock over the coming months as both buy and sell side analysts are able to digest this news. Also, this should catch the attention of major mining companies (if it hasn’t already), as Sunridge’s current market cap is less than a tenth of the NPV at ~$50 million. Here are the highlights from the news release:
Now this is 100% my “bias” opinion only but given what the Chinese have been doing in Eritrea and their large appetite for metals, it would come as no surprise that they enter some sort of arrangement with SGC in the coming months.
I wouldn’t focus on the next 24 hours of trading but rather what this type of news can lead to in the next 24 weeks. At just $.40 a share (and $50 million market cap), SGC is indeed one of the most compelling speculative/gambling juniors in the market today!
MAY 12
2