Hi Russett.
The great thing about this thread is that every region in which SUF is currently active has its supporter(s) - NWT (Vaughn) , Brazil(Whisky) , Angola (Marcos) and RSA (a lot of us , but that's because its the only place where SUF is making any #&*@ money). (gggg)
The days of being a pure spec play with seemingly boundless blue sky (which brokerage firms love to push in keen anticipation of underwriting fees) are behind SUF. It is now in a bit of a twilight zone - part producer , part explorer. I have a hunch that the various analysts would not be so critical of where SUF was spending its $ if their firms were underwriting the same exploration expenditures , BWDIK.
Messina only seems to confuse the analysts further , although I guess I can understand them taking a "Show me " position at this time - they are probably a little SUF-gun shy at this point and this hamster can't really blame them.
Your production #'s look a little aggressive to me - at least for the very near-term - but I completely echo the sentiment motivating your approach - i.e. time to knuckle down , fulfill existing exploration commitments but monetize assets wherever possible , and use cash to bring nearer-term assets into production.
I would also hope that in taking a more "near-term" production focus (until the patient is stabilized, then sensibly opening the exploration pursestrings) , the market will afford SUF a higher multiple. For instance , DBRSY is 12+ X , ABZ (3 years away from making ANY $) is 6+ X , DMM is 8.5 X , NMR is (thanks Phil) 13X and SUF is, well, not good. I've been trying to do some homework on multiples afforded PGM producers and can't stop grinning ; the corporate finance elements of this proposed acquisition present some exciting possibilities (again - PHNPI) and I hope SUF capitalizes on them.
Regards and Good Luck to us all. |
