Ann: Underground Phase of Cannon Gold Mine to Proceed, page-12

First 12 Last

Share
Profile

Follow
TrendTracker

2,900 Posts.

127

23/01/18

22:17

Post #: 30513478
Share

Originally posted by MIStragic ↑

Binnie, Give me a break - your simplistic arithmetic lesson is only useful for what it concedes - WGX AISC may be A$1000 or less ....do you think for 1 minute that WGX would have agreed to this deal if they didn't think there were many multiples of 22,000 oz's on offer from Cannon UG ? Cookie is no philanthropist!
All the Cannon infrastructure was built by WGX but funded by SAU (with loan money @ 8% from WGX) and now this infrastructure is effectively owned by WGX .... nice one Cookie.
Also, the original deal was that the proceeds would cover all WGX's cost of production (AISC) and give WGX 50% of net profit .... again a low risk as it was a high-grade resource ... another nice one Cookie.
The original estimate of the Cannon open pit was 100K oz's plus, more with George's Reward resource added. What was actually mined was a little over half of this from the open pit ... the other half (or 3/4) is underground.
I repeat - this was a great deal for WGX, and the best that can be said about SAU result, is that beggars can't be choosy ( ? )
One more thing - the reason for the low liquidity is not that this penny stock is 'too expensive' but that there's nothing being announced to attract significant buying ... if after a 15 to 1 share price reduction, SAU announced a 5 for 1 share number expansion .... would make SAU the laughing stock of the ASX.
It certainly would confirm SAU as a penny stock, the very thing SM was keen to avoid.

Expand

What else would you suggest - perhaps build a plant next door to process 20k?

SAU Price at posting: 27.0¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

Reply

Top Stories

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

QML

Black Canyon finds 3km worth of manganese after mapping and analysis at Wandanya

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

There are more pages in this discussion • 10 more messages in this thread...

First 12 Last

Add SAU (ASX) to my watchlist

Ann: Underground Phase of Cannon Gold Mine to Proceed, page-12

Top Stories

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

Black Canyon finds 3km worth of manganese after mapping and analysis at Wandanya

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects