Tuesday, May 29, 2012

Sabina Silver's PEA

Sabina came out with their PEA.

Sabina's present parket cap (at $2.20) is $350M.

The PEA for Back River prices at post-tax NPV(5%) of $650M. That's assuming $1250 gold, which is conservative, but it seems to be all the rage these days to assume gold's going down from here.

Pre-production capital is listed at $450M.

What bothers me is that, while I'm working from memory here, their Xstrata stream is only worth something like $250M at conservative silver prices, so they'd still have to finance to build the project, which is still a few years away in any case (they can't finance Back River's capex off that stream unless they sell the stream).

So, without opening Excel, it doesn't impress me enough to want to buy.

Besides, nobody likes the North-of-60.

1 comment:

  1. 1,250 gold? At least they aren't pulling Facebook valuations. Nice to operate sooomewhat in the realm of possibility.

    Can't believe I just said that about the miners.