Stockchase Opinions

Jon Case Sabina Gold & Silver Corp. SBB-T DON'T BUY Jul 26, 2016

A gold developer with a development asset in Nunavut, a resource of about 5 million good grade ounces. This size of mine is an interesting deposit to a potential acquirer. He typically stays away from developers because they burn cash flow for a number of years as they build a mine. When they start generating cash flow is when he usually becomes more interested. They have recently come into some permitting hiccups, which probably puts a cap on the stock until they address those concerns, which can take 1-2 years.

$1.140

Stock price when the opinion was issued

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BUY
(Market Call Minute) Lots of discoveries.
BUY ON WEAKNESS
Has silver, but recently their gold properties have moved to the forefront by continuing to add resources. A little bit overbought at the moment so wait for the next stage when they have more drill results. Try to buy at around $2.75.
COMMENT

Have gold assets as well as silver royalties. The Back River gold property continues to grow in ounces. A good, leveraged way to play the silver space.

DON'T BUY

Likes the people and likes a lot about the deposit but it is too remote for him. Doesn’t think this is the type of deposit that gets built this cycle.

BUY

(Market Call Minute.) Nobody seems to care about this, but he does. Has a great set of assets. No immediate catalyst for it, but it is a Buy.

COMMENT

(Market Call Minute.) This depends on how you feel about Caribou. The project has been set back as a consequence of environmental concerns. Well run and a high quality deposit. Very, very strange politics.

COMMENT

Have a good open-pit project in the Yukon with a good production profile. You own this as a take-out target. They are doing a lot of exploration around the area to prove the upside potential and de-risk any development issues.

TOP PICK
He met with the CEO yesterday. Their Nunavut is a project is a high-grade open pit, which costs a lot, but the grades as three times the average and yields a high 6 gr/tonne. He's waiting for a new feasibility study and expansion of the resource after the last three years of drilling. (Analysts’ price target is $2.94)
PAST TOP PICK
(A Top Pick Mar 03/20, Up 14%) Are developing gold in Nunavut in a fully-permitted, high-grade, open-pit project. The knock is that it's in a northern frontier which means higher costs to fly in and out supplies, and it's less easy to work up north. He's owned this stock for years and is confident with them. He expects construction to start in 2022.