I am extremely grateful for the time, effort, dedication and comments to this site over the past years from Elementwise, Traps7, rookieprospector and especially the front line knowledge, observations, expertise and insight of Hotmuck.

I have owned a trainload of SGR, SKP and WEL since February 2006 and have never sold a share. And now I will also start to accumulate COU and perhaps BGE.

Even with a N43-101 of 3 million ounces, I believe SGR’s market cap of $1 billion ($3.66 x FD 280 million shares) scares potential suitors and is too high to attract any acceptable take-over offers.

So I look at SGR from the perspective of a massive mine with a100 year mine life and a soon-to-be annual production of 250,000 ounces.

Assuming no further share dilution; an all-in cost of $350 per ounce; the POG at $1000; the $650 profit will give owners 250,000 x $650 = $162,500,000, or an EPS of 0.58 cents.

An EPS of 0.58 and a modest PE ratio of 10X should give us a share price to $5.80.

A payout ratio of 60% or 0.35 cents would give us a 6% annual dividend. I would be quite happy with that, as will my children and after them, my grandchildren.

And if the all-in cost drops a bit, if production goes up a bit, if the average grades stay the same and if the POG rises a bit, we’ll be even happier.

As the drill bits twist,

In the Rice Lake mist,

I can only conclude,

As I do my sums,

That something wonderful,

This way comes.

Fred25