The break was over the 3.5% I usually give as lee-way so it was another reason to hold off. I see some weak support at around 90 cents, but I'm not expecting alot. I've seen what happens when this stock goes below $1.00....PANIC TIME!
That being said, this stock responds to noticeable changes in the POG. A good day for gold usually means a good day for Sabina.
(Conjecture aside...what a bargain.
-Over 6 million Oz Au grading ~7g/t
-Permits in place
-positive studies, showing (iirc) roughly 540/oz all in
-In Canada
-Silver royalty worth hundreds of millions (22.5% of first 190 million Oz, 12.5% there after)
-One of the highest grading projects in the Americas not owned by a producer
All for $1.00. Purely on the specs, one of my favorite plays.
(PS: in their corporate presentations, they often provide a chart comparing other high grade project with 5+ million oz in the Americas and they don't use the Roman V when writing the name Pretium...yea, I'd feel stupid doing that as well.) )
Sabina's silver royalty is definitely worth a lot more than their market cap.
ReplyDeleteUntil, that is, you try to calculate a net present value for the stream using the assumption that GlenStrata won't develop Hackett til hell freezes over. The announcement of the GlenStrata merger was the point at which Sabina's stock price collapsed, it was pretty obvious why at the time even to an idiot like me.
True, we probably will not see it developed for a while. The last "updated" resource announcement for Hacket River was weird as well, as (iirc) Sabina had reported those same numbers years back, but the headline read something like "36% increase".
DeleteI recall that period as well, and recall that 12 of the 14 execs were going to be from the Glencore side of things and only 2 from Xstrata.
Still, the grade is good at the Back River project. I had the chance to spend roughly 6 weeks up there last year, interesting place Nunavut...