Re: SSC - Sultan Corporation
Thought I would take my first crack at a more in depth analysis for anyones Information, comments and criticisms appreciated!
Sultan Corporation is a re-cap. It was previously known as Wytomic Limited (WYT) and before that Quadtel Limited (QTL). It recapped in December 06 and the prospectus closed fully subscribed (
http://www.delisted.com.au/Company/9011).
There are
546,425,000 shares on issue and
81,500,000 unlisted options. I think these expire in June 2010 with an exercise price of 2c.
Market CAP: 546,425,000 x .019 (previous close price) =
10 - 11 mil
Fully diluted MC is close to 12 mil.
They acquired their flagship Peelwood Zinc/Copper project in May 2007. This project contains the John Fardy Zinc deposit.
The John Fardy deposit is located on freehold land that is not subject to native title and is well situated for infrastructure.
The Peelwood zinc project has several old mines and prospects with zinc-rich volcanics-hosted massive sulphide-style mineralization.
The John Fardy deposit is at an advanced stage of exploration and there are numerous diamond drill hole intersections of massive sulphide mineralization with zinc, copper and silver grades.
John Fardy has a JORC compliant estimate of 862,000t @ 6.7% Zn equiv.
Since the project acquisition they have continued to get high grade intersections and in May 2008 announced that they have engaged Cube Consulting to calculated an upgraded JORC resource. This drilling should almost be complete.
The company has engaged Intermine Engineering Consultants to complete all design and engineering studies. Intermine Engineering Consultants will also manage the processes necessary to obtain regulatory approvals required to commence mining operations at John Fardy.
Due to the near surface nature of the ore body and associated simplicity of future operations it is anticipated that the BFS would conclude in the 1st quarter of 2008-09.
They also just completed a placement of 41,425,00 shares 2.4c to sophisticated and professional investors to raise $994,200.
Its a good confidence boost knowing that the bigger guys are willing to throw relatively large amounts of cash at Sultan at these levels.
At currents levels I see little downside in this stock and alot of potential upside.
There should be a good flow of positive news in the coming weeks with regards to their upgraded John Fardy Resource.
Anyone got any thoughts?
Cheers,
Rhys