I didnt put the other graphical piece on here as it didnt display properly.
However they had other flaws too, I mean they are saying 153 700 oz for 2012. yeah right, no way in hell will SGR almost double production in one year. They may get there but it won't be in 2012. Also 4.40 target, I'm guessing that's 12 month target. Once again if they are CF+ in both Q2 & Q3, that alone will take SGR over 4.50.
If you throw in another 43-101 over 5 Million oz, we are then over 5$ a share.
Plus with Gold over 1600$, that's just more money in the bank. They said 0.03 EPS for 2011. I'm sure we will out perform that .
SGR (TSX) $3.44
TARGET PRICE: $4.40
POTENTIAL RETURN: 27.9%
52-week High-Low $2.45 - $4.18
Shares Outstanding - Fully Diluted (mln) 322.3
S/O - In the money & Fully Financed (mln) 322.2
Market Capitalization (FD) (mln) $1,108.9
Year End: Dec. 31 2010A 2011E 2012E
EPS (Cdn$) ($0.08) $0.03 $0.27
CFPS (Cdn$) ($0.04) $0.08 $0.31
P/E (x) n/a 130.9x 12.9x
P/CF (x) n/a 45.9x 11.0x
Production ('000s oz) 4 3.5 86.9 153.7
TCC (US$/oz) US$1,304 US$827 US$581
CAPEX (Cdn$ mln) $54 $66 $54
2011 guidance for 80,000 oz at a total cash cost of US$650/oz
Financial Data: Estimated for Q2 2011
Cash (Cdn$ mln) $68.3
Total long-term debt (Cdn$ mln) $0.0
Net Asset Value Per Share (Base Case Cdn$) $2.39
Net Asset Value Per Share (Forward Curve Cdn$) $4.48
Price to NAVPS - Base Case (x) 1.4x
Dividend Yield (%) 0.0%
