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*good reserves (186,316 ounces) - this is what allows them to establish the 5 year mine life. The mine life could be doubled if they are successful in converting over the inferred ounces.
*still good exploration potential on the property, which could still bring the resource to much higher levels, but only on a much longer term basis.
*excellent grades - the 8 to 9 g/t is substantially higher than what they mined in 2007. I will have to take a closer look at the NR to see if they say anything about it. It's unclear if they have left off some of the lower graded ounces due to having unsufficient 43-101 data.
*the higher grade has allowed for a good LOM cash cost per oz of $302.
*EBITDA (earnings before interest taxes depreciation and amortization) - $10M in 2008 and $15.9 in 2008, with an $800 gold price (this is nice for a tiny operation)
Negatives:
*substantially lower than expected resource count, with 377,916 ounces. IMO, it represents further credibility damage to the compamny, as 850,000 ounce estimates were used in many of the Corporate Presentations for San Juan. It didn't just miss it by just a little.
*more capital expenditures - although maybe the positive EBITDA situation can provide the funds, as a self sufficient operation, especially once Lamaque gets going on its own.
These are just some quick thoughts for now. I might have more later.
Certainly a disappointment on the number of ounces, but these are high quality ounces with very good grades of 8 g/tonne and low cash costs to produce.
If you check the "Comparison of Gold Cos" spreadsheet, the average market cap/reserve oz for the 20 companies profiled is $324/reserve ounce.
By that metric, SJ's 186,000 reserve ozs. are worth $60 million.
The market cap for the entire company is less than 50% of that.
Ounces are disappointing but on the positive side. Looks like Peggy will be under intense scutiny from here on out regarding any numbers she releases. So what you see is what you get. No more bs. And as others have stated...SJ isn't given any value in current sp anyways. For that matter niether is Lamaque. Still feel SJ was a steal for what they picked it up for.
3 comments:
Thoughts (at first glance)
Positives:
*good reserves (186,316 ounces) - this is what allows them to establish the 5 year mine life. The mine life could be doubled if they are successful in converting over the inferred ounces.
*still good exploration potential on the property, which could still bring the resource to much higher levels, but only on a much longer term basis.
*excellent grades - the 8 to 9 g/t is substantially higher than what they mined in 2007. I will have to take a closer look at the NR to see if they say anything about it. It's unclear if they have left off some of the lower graded ounces due to having unsufficient 43-101 data.
*the higher grade has allowed for a good LOM cash cost per oz of $302.
*EBITDA (earnings before interest taxes depreciation and amortization) - $10M in 2008 and $15.9 in 2008, with an $800 gold price (this is nice for a tiny operation)
Negatives:
*substantially lower than expected resource count, with 377,916 ounces. IMO, it represents further credibility damage to the compamny, as 850,000 ounce estimates were used in many of the Corporate Presentations for San Juan. It didn't just miss it by just a little.
*more capital expenditures - although maybe the positive EBITDA situation can provide the funds, as a self sufficient operation, especially once Lamaque gets going on its own.
These are just some quick thoughts for now. I might have more later.
Production05
Certainly a disappointment on the number of ounces, but these are high quality ounces with very good grades of 8 g/tonne and low cash costs to produce.
If you check the "Comparison of Gold Cos" spreadsheet, the average market cap/reserve oz for the 20 companies profiled is $324/reserve ounce.
By that metric, SJ's 186,000 reserve ozs. are worth $60 million.
The market cap for the entire company is less than 50% of that.
Ounces are disappointing
but on the positive side.
Looks like Peggy will be
under intense scutiny from
here on out regarding any
numbers she releases. So
what you see is what you get. No more bs. And as
others have stated...SJ
isn't given any value in
current sp anyways. For
that matter niether is
Lamaque. Still feel SJ
was a steal for what they
picked it up for.
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