Christmas in July For Sabina Gold and Silver (SBB.T)
Sabina Gold and Silver has been a past pick, a past sell at big profits and then another recent pick at the PDAC conference. I was one of the guest speakers and I had a chance to speak with their top guy Bruce Mcleod prior to the PDAC that made me want to jump on board again.
Last night, they got past a big roadblock when the Nunavut Impact Review Board (NIRB) reversed course from their previous red light for the project and approved it. Sabina had this past ruling hanging over their heads for a while, but now they are set free, to go out and drill plus move forward on building a gold mine.
They may as well just focus on building the ounces because I don’t see any way they will be around long before they see a takeover offer. The gold majors are sitting on a lot of iffy ounces, they are in drastic need of projects like this, only problem for them is there aren’t many around. Barrick, Goldcorp, Agnico are all in the running to buy this and it won’t be long before they show up to the party.
You can find all the numbers on the company’s website, but here are the main ones. They have a very high-grade gold deposit for an open pit mine, it will cost less than a billion to build when most mines these days are well over that capex, it has a fast payback of the capital costs, and a low all-in cost of production. They also have plenty of room to grow the gold ounces with the drill rig.
I was joking around with some pals online after the ruling came out last night and I said that this is an idiot proof project and idiot proof projects start with a price tag of a billion. I went on that this could grow to as much as 1.5 billion depending on the time they have to drill more ounces.
For the audience that attended my talk at the PDAC in early March, or read the report I put out shortly after discussing my picks, if you have owned the stock since then you are looking at over a 50% gainer and it has a lot of blue sky in front of it.
My hope is that they get some time to drill and report more ounces after getting the green light, but I don’t think they will. I can see a takeover out the front window and it is very close.
All the best,
Allan Barry Laboucan
Allan Barry Reports
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P.S. my reports are for information purposes only, before making any investment decisions it is important to do your homework and speak with your financial advisers.
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