SAU (ASX) gold in old mines

Originally posted by Dingoheeler ↑

Thanks for the kind words fellas. It's been very quiet with not too much news to chew on. So I may as well chip in some musings.

Charles Barclay impressed me with his few interviews and presentations earlier in the year. All I essentially did; was to denote all of his talking points and expand on them with my uneducated opinions.....

Especially Gubong, however, all the other old mines should prove profitable at today's metal prices and be incredible at higher prices. The grades and tonnages are going to surprise a lot of people, IMO.

Cannon UG was this year's biggest surprise to me. The fantastic grades in the drill holes translated into being a fairly small JORC. Shows how much I know about these things! I immediately thought comparisons to big UG mines like Daisy Milano and NST's operations would flow. That hasn't happened..... so far anyway! Those mines would have started out small too, so there's still a good chance that Cannon could have a long LOM. Patience required.

Lake Consols and other Glandore areas are looking like the most potential for Aussie news excitement and have probably overtaken Weolyu too.

We need news about our next cash flow story and soon! Cannon UG will probably
need to be mined in conjunction with small, shallow open pit. Jimmy D could be it, however, Lake Consols could end up being a reasonably big OP mine and could jump ahead of Jimmy.

Management must have been super confident of cash generation, for distributing a million bucks in divvies, when we're less than 5 mil in the kitty now. Using the share placement facility within a year or so of a divvie distribution would really make no sense to me, whatsoever. I'm thinking that the odds of this happening are pretty high, though. Can 5 mil last us until the next cash flow comes in?? I'd appreciate some news very soon on Cannon etc going ahead.

Gubong is going to be the "surest thing" company maker IMO. We'll, purportedly, need to chip in 5Million (of 10 million) for a small processing facility. I reckon we could realistically double this number and say 20 million (10 each) for SAU/BMV.

Whichever way I look at it, we're probably going to have to raise capital at some stage in 2019. Debt is possible too - especially to get Gubong operational. I love the organic funding model. However, I'd be really (pleasantly) amazed if this could be pulled off.

I think 2020 could realistically see SAU have 200-300 million Shares on Issue. Profitable mines in SK and Oz - THEN organically funding the 10s of thousands of meters drilling programs that are required to find multi million Oz deposits.

I'm still very optimistic, but I don't think we'll resemble the shoestring organic funding model operation we are at the moment.... I hope I'm wrong, however, we're battling time with our good but dwindling balance sheet. And Father Time remains undefeated.

Expand

Good musings again mate.
We cant go Cannon UG alone, so I would expect that discussions on that front have developed over the past few months. Simon is a proven deal maker, so I hope he's working on something better than a 50/50 profit split this time.
A 200-300M SOI company excites me, but only with the share price closer to $1, if not higher. This company should be able to be grown organically to $100M MC keeping the register as tight as it has been (until the 7% was given away at the AGM.) We're due some news soon I would say

Good musings again mate. We cant go Cannon UG alone, so I would...