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It’s because the note values it at 8 million with a 90% discount for various risks. The permit risk will be gone when the appeal period expires a week from now, the question of market demand closes when an off take agreement is announced etc..
Where do you get from that note that it says the upside is £80m?
Hi sheldrake, LSE makes new posters wait a while before allowing them to post links.
https://www.sunriseresourcesplc.com/filemanager/Research%20Notes/Sunrise%20Resources%20plc%20-%20SVS%20Securities%20-%20Research%20Note%2018%20January%202019.pdf
It would be nice to have a more up to date research note - preferably without all the silly errors, inaccuracies etc that this one had!
I don't know why the board removed my link or estimate of price. two point three pence is the guess based on the report.
The report is the only one listed under 'research' on SRES' site.
This research note (hosted on Sunrise's own site) is relevant, sorry if this is old news
https://www.sunriseresourcesplc.com/filemanager/Research%20Notes/Sunrise%20Resources%20plc%20-%20SVS%20Securities%20-%20Research%20Note%2018%20January%202019.pdf
"Using a heavily discounted risk adjusted DCF model, we arrive at a fair value for SRES of £8.0m which includes
our FY18/19E year-end net debt of £0.6m and the total number of Ordinary shares in issue (post the equity
placing announced on 9th January 2019) of 2736m. With the current share price being 0.15p, this indicates
significant upside today of 173%, assuming all current risks have been captured. It must be noted that this
valuation contains both a 70% funding and a 20% cash flow discount rate given Sunrise’s early, precommercialisation, stage of development. "
So it looks this researcher believed in 2019 that if Sunrise overcomes all the risks (i.e. all permits, offtake deals closed, good price for perlite and pozzolan at the time of mining etc..) it would be worth about $80 million.
They're using a lower estimate of the volume of minerals in this report than are cited in this thread, and 15 rather than 27 years of production (I cannot tell who is right, but it's significant to me that SRES still show this report to investors on their site. Maybe it errd on the conservative side), and that the net income per tonne of minerals is estimated at about 30% of sale price.
If SRES is going to be worth 80 million when it closes offtake deals etc.. then a fair price for it (ignoring the bay silver and other stuff as in this report) would be about 2.3-2.4p.
I'd be very happy with that.
Good Morning Mr Sam.
I have a separate file on all of Sunrise Investments.
I had this in my notes if it helps.
RNS Number : 3799O
Sunrise Resources Plc
29 May 2020
In the 12 months leading up to the date of this report the US dollar gold price has seen a 29% increase. In the coming weeks we will look at the best way for shareholders to benefit from this. We already hold a portfolio of highly prospective gold and silver projects which, we believe, have been overlooked by the market and we will consider some limited drill testing of selected projects in order to unlock the value they represent for the Company and its shareholders.
Good morning Min. Why not talk about Bay? Even PC is talking about gold and silver in the RNS so yes, maybe you have missed something. You need to go back and read them all again. You have been a very naughty boy Min. Lol
Good Morning Mineralex,
The "update" is the price of silver, which is getting on for twice what it was this time last year. That's why Bay State has become interesting again.
Good Morning everyone and Mr Sam
Why is the BB talking a lot about Bay Silver ?
Has there been an update that I’ve missed since 2019 please.
If so could you please enlighten me.
1 word......BOOM!
So what do we think £1.6bn of minerals, obviously that's not all profit, does to the market cap of this company once we have deals in place to sell it?
Great post Sam lol. My workings for Bay state was for 12m/oz that I worked out from drill samples before the 10m/oz was released but even so, nowhere near the CS project.
I just wonder what our share price would be right now if it was a mining permit for Bay State we had? My thoughts are they would probably be well over .5 . That just shows you how under valued SRES is currently. Im sure we wont stay this low long. Massively undervalued! New investors will start and work this one out and see how much value there really is here.
Lee (Losealot on here) made a fantastic point in the Twitter group. This is what he put..... "Just a thought, the CS project has a potential $1 billion of pozz/perlite. Bay state has just $336 million at this high silver price And would cost a lot more to mine it and $hit loads to get it to mining, same with any gold projects. I know which I'd sooner have."
Even at these conservative figures for CS Lee has a real valid point. i would estimate CS at $1.6 billion and thats for the 27 year mine plan which is probably under half of the actual resources. Bay with 10 mill ounces of silver at $28 an ounce is only $280 million.... I say "only" lol, and take into consideration how easy CS is to mine (if you can call it that! lol) versus mining Bay, Im with Lee on this one! It's definitely a no brainer.
Great Post Lee!