re: Ann: Notification-Southern Cross Equities... Hi Legume, it...

re: Ann: Notification-Southern Cross Equities... Hi Legume, it doesn't seem to be a pump and dump, as Southern Cross Equities have a good reputation. 'Site visit supports buy recommedation'. Main points:
* at least 45 koz gold pa, depending on grade
* grades much higher than reserve grade, both silver and gold
* Exploration accelerated
* Plant performance to improve from 80%
* Cash flow starting to build, based on very low costs

Buy. Target price (12 months): $1.55, which equates to 1.3 x NPV. Investment strategy; growing gold asset, see growth in production, reserves and resources. IMHO gold / silver prices will make the production costs negative in the coming year and the exploration will extend the LOM increaing the NPV significantly.

Interesting valuation of the SARINC Zinc Tailings Project; 'non core', consists of vast low grade tailings, compliant JORC resource will be finalised around December / January, testwork to determine recoveries and estabish 'a separate corporate vehicle for the assets'. Current value A$25m. IMHO may be a spin off with long-term significant value. TFP