SBL - Signature Metals

[Crom]

Hi Tekwrek, Looks like the SBL train might be leaving the station?

I got in at .029 and will look to add another position on a break of .035 as with production oh so close this stock could move to 6 or 7 cents quite quickly.


Regards
Lenny

Where do you get your 6 - 7 cents target from Lenny.

I find it difficult to assess targets on this stock and yes, I am a holder and a big believer in many good things to come from this stock.

It seems very undervalued compared to it's peer group. In addition, it is also about to be a producer. My feeling is that with exploration upside and being a producer, a far greater value will be assigned.

Cheers

 

[Tekwrek]

Hi Tekwrek, Looks like the SBL train might be leaving the station?

I got in at .029 and will look to add another position on a break of .035 as with production oh so close this stock could move to 6 or 7 cents quite quickly.


Regards
Lenny

After this mornings performance i hope it is not a pump and dump stock.

 

[Tekwrek]

Where do you get your 6 - 7 cents target from Lenny.

I find it difficult to assess targets on this stock and yes, I am a holder and a big believer in many good things to come from this stock.

It seems very undervalued compared to it's peer group. In addition, it is also about to be a producer. My feeling is that with exploration upside and being a producer, a far greater value will be assigned.

Cheers

You did well today with a 17% increase.

 

[boronia]

Where do you get your 6 - 7 cents target from Lenny.

I find it difficult to assess targets on this stock and yes, I am a holder and a big believer in many good things to come from this stock.

It seems very undervalued compared to it's peer group. In addition, it is also about to be a producer. My feeling is that with exploration upside and being a producer, a far greater value will be assigned.

Cheers

Crom, I'm not sure how Lenny calculated 6-7c target but here is some of my (very conservative) estimates -

CIL plant has max capacity of 350 ktpa,
- plant up-time estimate of 80% for year one = output of 280 kt for 2011
- head grade thru the plant of 2.5 g/t @ 70% extraction efficiency = 17,284 oz in 2011
- SBL own only 70% of the Project = 12,098 oz
- at POG $1300/oz = $15.7 million in revenue
- at operating expenses of $650/oz = EBIT of $7.8 million
- Mkt Cap is $74 million at 4c last Friday which gives a PE of about 10x 2011 earnings. Gold sector PE's are running about 15x which would (perhaps) give a 6c shareprice for SBL.

The good news is that a doubling of plant capacity to 700ktpa can be done for $3-4 million which will increase output to 40-60,000 oz at 2-3 g/t and also reduce operating expenses by 15%. I guess that they will be able to fund the plant upgrade thru 2011 earnings I just hope that they don't have to raise capital for their agressive exploration program to prove up Resources.

I've held SBL since Feb02 and still like the fundamentals on this gold spec. The 14% jump in share price on Friday was probably because of major shareholder notification by Bank of America.

First gold pour should occur by end of Q1 and will generate some interest here.

boronia

 

[Crom]

Thanks for that Boronia. As you say, it is a conservative estimate which hopefully will be passed in the very near future!

While I have tended to trade the West African Gold stocks, and thankfully made incredible profits in the many hundreds of percents, it was because I had a good idea of targets. Like you I believe the SBL target is significantly higher than where it is now, and as such I am happy to just hold.

There was a research report put out by CPS securities in Nov 2010 that I recently came across, and while no targets were mentioned, they advised a significant lag between per ounce valuation and mkt capitalisation relative to it's peers. In this regard they held the view it was substantially undervalued relative to it's peers.

The Bank of America news was welcomed and of course there is further good news re increased gold intersections. Perhaps due to the perception of this stock just being a penny dreadful, it has not been on the radar of many investors, especially with the soaring gains that have been made by the other African gold plays. However with the Bank of America play, increasing reserves, AND becoming a producer in the very near term, I believe this stock is set to keep increasing and perhaps as other West African gold stocks did, by many many multiples!

All the best

Crom

 

[kingkev]

Anybody still watching this....................looks like a junior miner that is about to ramp up and send the sp North. Worth watching I think

 

[CarbonSteel]

Anybody still watching this....................looks like a junior miner that is about to ramp up and send the sp North. Worth watching I think

Yeah, me too. Looks like a goer if the gold price holds up. But that isnt looking good. Cost to recover is around $650/oz and while a GP of $1000 looks good today, the gold price may not be sustainable if Germany & france do slip into recession as predicted by Goldman Sachs a couple of days ago. (followed by the rest of Europe and the EU and then the Eastern Block and then affecting Chinas, Americas, Japans exports - i.e -major worldwide recession) 2.1B shares and 1.3M ozs. 1.3M x (best scenario) $1000 GP = $1.3B over the life of the mine. Big picture is that these shares can never be worth more than 50c. What to do? Be interested in your take on it all.

 

[kingkev]

Yeah, me too. Looks like a goer if the gold price holds up. But that isnt looking good. Cost to recover is around $650/oz and while a GP of $1000 looks good today, the gold price may not be sustainable if Germany & france do slip into recession as predicted by Goldman Sachs a couple of days ago. (followed by the rest of Europe and the EU and then the Eastern Block and then affecting Chinas, Americas, Japans exports - i.e -major worldwide recession) 2.1B shares and 1.3M ozs. 1.3M x (best scenario) $1000 GP = $1.3B over the life of the mine. Big picture is that these shares can never be worth more than 50c. What to do? Be interested in your take on it all.

New player on board with 5 mill buy at 1.5c............happy with that even though some sp dillution willl be evident. Still waiting for production costs. Rumours out there that a bit on the high side. Interesting to see their staffing levels gone from bugger all last year to 419 this year. Ramping up is happening. I am sure this new bunch would know a bit more than what we do to pump 5 mill into it. Have seen things go the other way but appears to be som upside here. Director put a lot of his own money into this at 2.5c

I agree....50c is out of the question even long long term, howver I would be happy to see this at 5c which is not out of the question assuming everything aligns with my lucky stars

 

[mr. jeff]

Have had a look through the latest presentation and found some interesting things.
SBL have a 1.47Moz JORC resource at 1.95g/t, 687kOz of that indicated. Quite low grade and probably explains why the SP is not excited. Their exploration results have also been low grade which is disappointing. The current mine has good intersections but appears to have been extensively worked in the past, so may be showing signs of exhaustion.

Can the followers here fill us in more, and what is coming in the next little while?
My interpretation is that they are producing 73 Oz/day (is this dore or just Au?) at maximum throughput (which may not be maintained ) which equates to $6.5 M/quarter in sales assuming cash costs hold around $650.

Upside comes from exploration and potential stockpile grades to be processed.
Market cap $28M and if they are producing a conservative 200d/yr then that is $14M/annum in profit, sustainable for quite a few years. Might need to up the ante a bit if there is to be any serious money attracted to the operation.

Comments?

 

[mr. jeff]

"RECOMMENDED TAKEOVER OFFER BY
LIONGOLD FOR SIGNATURE METALS"

"Transaction Details
The exchange ratio of one (1) LionGold share for every [34] Signature shares represents an
attractive premium for Signature shareholders. The implied offer price of $0.02 per share
(based on a LionGold share price of [SGD$0.8657 and foreign exchange rate of
$SGD1.2869: $AUD1.00]) represents:
• A 54% premium to the closing price of 1.3c per Signature Share on ASX on the
last trading day (13 October 2011) before the Announcement Date.
• A 46% premium to the one month volume weighted average price of 1.37c per
Signature Share on ASX on the last trading day (13 October 2011) before the
Announcement Date."

Ridiculously well timed entry, I swear it is skill not luck.

Price sitting at 1.6c with a 2c bid.
Know nothing about LionGold, but sp. slightly less than issue price at the moment on SGX.

 

[Bowser007]

For all those who are not aware on this forum there has been an action group started on Hot Copper to try and put a stop to Lion Gold takeover.
The price offered is ridiculously undervalued and a large number of us holders feel we are being sold off down the river.
If anyone on here feels the same please send an email to signatureaction@y7mail.com stating how many shares you hold and if you wish to be part of this action.
We currently have over 60 holders with approx 100 000 000 shares. We need at least 100 holders or 300 000 000 shares to force an EGM.
Basically we are trying to get a better deal than the measly 2c offer. Which in effect due to exchange rates is only 1.94 cents per share. Add to this that we believe that the inflated price of Lion Gold share price there is no guarantee that LG share price wont slump upon transfer of shares. I am sure you are all aware that it is a share swap not a cash offer as well.
We have some very dedicated people puhing this action and advice from ASA re going forward.
For more info please email AMAN on the above address.

Hoping for your support

Cheers

Bowser

 

[john12]

For all those who are not aware on this forum there has been an action group started on Hot Copper to try and put a stop to Lion Gold takeover.
The price offered is ridiculously undervalued and a large number of us holders feel we are being sold off down the river.
If anyone on here feels the same please send an email to signatureaction@y7mail.com stating how many shares you hold and if you wish to be part of this action.
We currently have over 60 holders with approx 100 000 000 shares. We need at least 100 holders or 300 000 000 shares to force an EGM.
Basically we are trying to get a better deal than the measly 2c offer. Which in effect due to exchange rates is only 1.94 cents per share. Add to this that we believe that the inflated price of Lion Gold share price there is no guarantee that LG share price wont slump upon transfer of shares. I am sure you are all aware that it is a share swap not a cash offer as well.
We have some very dedicated people puhing this action and advice from ASA re going forward.
For more info please email AMAN on the above address.

Hoping for your support

Cheers

Bowser

any news on whats happening re this ???
im holding 55 560 shares

 

[System]

On May 1st, 2015, Signature Metals Limited (SBL) was removed from the ASX's official list at the request of the Company, in accordance with Listing Rule 17.11, subsequent to approval by the Company's shareholders at a General Meeting on 31 March 2015.