Andy, you are correct. With Sprott's reasoning, the share price could reach $2.40. With higher grades and more mill throughput, it could go much higher. This is what Sprott had to say and he's obviously referring to SGR:

"Well, I’ve always believed that the price was manipulated down. We know that the producers got massacred in 2013 and were already weak in 2012 as a result. In some cases their stocks fell to $.10 cents on the dollar or less from their highs. In fact I think I bought a stock at $.12 cents that had been as high as $5.00 when the price of gold was $1920. It’s a producer, and I have a simple formula.

Let’s assume the price of gold goes to $2000 and the average gold producer probably has a cost of production all-in of $1000. They’d be making roughly $1,000 per ounce.

So you take its production, and in the case of this $.12 cent company, it had about 85,000 ounces of production. Again, make $1000 an ounce. You would be making $85 million. I think the market cap at $.12 cents was something like $30 million.

Well, if you can make pretax $85 million, ($60 million after tax) and you trade at 10 times earnings, you become a $600 million market cap company that was trading for $30 million.

So that’s why I was a seller of metals to buy the stocks."