SMM - Summit Resources

[Halba]

Summit's production is about 7mil pounds in 2010/11. Its a large production profile in one hit, this is what is good.

I think paladin is producing 2.2mil from LH with expansion to about 3.5mil pounds, and another 2.2 from Malawi. Total about 6-7ish by 2010. So similar production profile going forward imho. Also SMM's deposit higher grade. I am assuming SMM will get 100% ownership of their deposits from PDN.

Not fair to compare to PDN imho. Last i checked paladin market cap $5200M fully diluted. SMM is about $780M fully diluted. Thats 15% of PDN's market cap, for a similar sized resource.


Re: Share issues. Not a valid reason to keep away from an investment IMHO. There are many other ways to keep dilution miminal anyhow(refer Fortescue metals)

 

[Go Nuke]

:microwave Hi guys

Look..the 1 main reason i got into U stocks..........

*Even if Australia wont go nuclear......other countries will or already have.....and if there is 1 thing i know about governments......the dollar signs to sell somthing like U to other countries and make a mint...will be too hard to refuse.

Im looking long turn....becasue it WILL happen...(change)

However......some of the better points of PDN might make me think of investing in the short term of covering my U stocks.
(Seen as ERA has those fixed prices)

:shoot: I too have no idea what im talking about...lol

 

[Sean K]

Looks like it might crack $4.00 on the set up this morning. I'd expect a psychological barrier to appear here and it might pause for a bit. Probably run too hard now. Market cap looks a bit on the high side for an explorer. Well, I suppose we could say the same for all the U explorers atm....worrying, imo.

(holding)

 

[Sean K]

Looks like it might crack $4.00 on the set up this morning. I'd expect a psychological barrier to appear here and it might pause for a bit.

Unfortunately, I was right here and it retraced again from just under $4.00.

Still consolidating, making a bit of a pennant in an uptrend. 4 JORCs are currently being audited and when released will surely put the light on SMM.

I've considered that the ann could result in a 'buy the rumour and sell the fact' situation, but with potentially up to 100m lbs in the ground and Beattie saying he will change the QLD policy if Nat Labour do (and they will IMO) then perhaps it's ready to jump on the news.

I still think valuations are stretched across the board in the U sector, but it seems the wave is still solid. Just gotta know how far to ride it....

 

[lancer]

finally 4.04!

 

[Sean K]

finally 4.04!

For the moment. Up 7%, but early in the day. Cracking the psychological $4 might be good, or more profit takers might slide in...

 

[Go Nuke]

I just dont know if I should buy more shares now...or if it is a bit overheated for an "Exploration" company

I bought into AGS too late....and Im paying for that now!

 

[Sean K]

I just dont know if I should buy more shares now...or if it is a bit overheated for an "Exploration" company

I bought into AGS too late....and Im paying for that now!

Like quite a few U explorers, it's market cap doesn't seem to fit the potential value right now. But, I said that when this was at $2.00. Risky sector to be just getting into at the moment IMO. I just can't see how these can keep going verticle....If you do get in, make sure you are prepared for a correction, or to bail quick. I could be wrong and this heads to $5.00+ without a break, but that seems unlikely IMO.

 

[dj_420]

this one might be demanding a higher market cap due to iron ore interests also. take a look at the pacific mines spin off. i think its going to be a cracker. current SMM holders will recieve 1 for 4 SMM shares in pacific mines.

however i would have also liked it if we recieved priority for the float but that is not the case!

 

[Halba]

this is not an 'explorer'. an 'explorer' suggests it aint got a resource. SMM does.

 

[Sean K]

this is not an 'explorer'. an 'explorer' suggests it aint got a resource. SMM does.

It hasn't done a BFS on any known deposit, to see if mining is viable so I think that puts it more in the 'explorer' catagory than 'producer'. There's a chance it still might not mine anything, although very remote of course.

 

[nizar]

this is not an 'explorer'. an 'explorer' suggests it aint got a resource. SMM does.

Paladin was an explorer until a few months ago.
Anything in the metals/mining/materials sector that is not a producer, is an explorer.

 

[Halba]

disagree again. SMM @ $800m the market clearly does not think its an explorer. Its a midcap mining development stock to be precise!

 

[nizar]

Kennas, where do you reckon is the nearest support for SMM?
Around $3.75ish?

Still heaps of upside for this stock.

 

[Halba]

spot on kennas

refer georgina basin radiometrics = lots of u exploration upside.

 

[Sean K]

Kennas, where do you reckon is the nearest support for SMM?
Around $3.75ish?

Still heaps of upside for this stock.

$3.60 ish I'd say. Shame it didn't clearly break this short term consolidation/resistance at $4.00 on Friday. Looked promising early, but as I suspected, profit takers flew in. I think a few people are sitting on some good gains in this and might be thinking the market cap is getting unrealistic. If the next JORCs come in taking the total resourse to over 100m lbs, then it might have more upside.

 

[56gsa]

interview with Eggers from Summit at
http://www.minesite.com/webcasts/co...radio.html#c412

He mentions they will commence BFS when Labor announce change in policy in April - which seems likely given Gillard's comments today... 3 to 3.5 years he then predicts to production all being well....

 

[Halba]

i think smm has quite al ot of resources, a lot of the deposits open at depth. Remember SMM is a developer, so $10/lb is the standard valuation to apply. so with 100m pounds, they should crack the $1bn barrier easy, straight thru!

 

[Sean K]

One great positive that SMM have in regard to their tenaments is that they're all relatively close to Mt Isa. The plant, logistics and workforce will all be relatively easy to get into place to support mining operations across the board.

 

[Halba]

yep i hold a fair few of these, a lot of my fund is in this stock as well. Who knows they may be able to improve the output rate in the BFS this year. A lot of exploration upside as well. Iron ore spinoffs(free 1 for 4 shares).