Great find from the SIR geological team, once more. SIR SP up 10% on a new discovery, MC up $100M thats more in 1 day than most NI or Gold stocks in total right now.
The stranded gold deposit to go with 2 stranded Ni deposits, great balance sheet, $250M cash, $440M debt facility, just in case you need $700M to build all that stranded infrastructure instead of the DFS understated $470M.
Oh but there are no plans in the DFS for a gold processing plant are there, and oh the Ni plant is capped at 1.5MTpa also, same size as the neighbouring Lake Johnston processing plant at 1.5MTpa of POS.
So great discoveries can boost a MCap by $100M ...thats amazing..go SIR go, let Dennis the Legend your COO get onto building that stranded infrastructure while the WA economy oil/IOP is in freefall to keep the building costs down to $700M instead of the $900M to $1B i expect this to cost SIR. By 2017, interest rates, wages and FIFO costs will be higher to boot just in time for the expected NP drop after the opening of those 30 processing mills in Indonesia and phillipines which has started already in earnest.
Seems Dennis agrees. Thats why he has invested in other cheaper undervalued Ni companies as well that can produce this year. Hey i hope SIR makes it but at $970M MC thats ridicuolously overvalued on current market conditions for a non producer with a massive debt and build capex over many years to come.
WSA, PAN,POS, SLR PRU BDR and MCR represent way stronger and cheaper valuation parameters. WSA has $280M income pa and cant cracka aprofit last year with the same MC as SIR...go figure.
The higher SIR goes the less likely that FMG or AF or BHP/RIO will bid for it but the more likely that SIR will bid for cheap infrastrusture owners nearby.
SIR Price at posting:
$2.51 Sentiment: Buy Disclosure: Not Held
