SUM - Sumatra Copper and Gold

Discussion in 'Stocks & Derivatives' started by BisonTHEdestroyer, Mar 24, 2011.

  1. BisonTHEdestroyer

    BisonTHEdestroyer New Member

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    I have always been stealing recommendations from here, So i thought after finding this very interesting one i would share.
    They are sitting on some very large deposits of Silver and Gold.


    SUM - Sumatra Copper and Gold

    Developer/Explorer in the Island of Sumatra Indonesia - They have non binding Agreements with New Crest Mining whom own 7.5% of shares on issue.
    They have the largest tenement in gold/silver rich Sumatra. Very high grades of Silver/gold already explored.
    Flag project to start production in Q1 of 2013 producing 70,000+ oz of Gold and 700,000 oz of Silver for 10 years with further increases expected.
    Further exploring and drilling taking place and they expect further upgrades to their resources.

    Resources

    As it stand they have confirmed

    2.15 million Ounces of Gold (1.6m mineable)
    28 million Ounces of Silver (20m minable)


    Very low cash costs for production with silver credits at todays prices nearly 200per oz for gold production (silver will only go higher).


    Market Cap


    40 mill market Cap
    Shares issued 160m
    41m options


    Top share holders
    Macqaurie Bank 18.5%
    Management 13%
    Gold Fund 8.2%
    Newcrest 7.5%


    Visit there website - http://www.sumatracoppergold.com/


    SUM - Has one of the lowest EV/R in the world. The have been received alot of brokage upgrades as of late (Dj Carmichael gave it a 9mnth target of .91cents)


    This is very undervalued for anyone who wants a Silver and Gold small Cap.

    Any way good luck and please DYOR !!!
     
  2. BisonTHEdestroyer

    BisonTHEdestroyer New Member

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    New Crest have a buy option in on their Tandai Project for 12million, that is unexplored land. The Tembang project is 100% SUM and that holds as quoted above.


    So it looks good.
     
  3. BisonTHEdestroyer

    BisonTHEdestroyer New Member

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  4. BisonTHEdestroyer

    BisonTHEdestroyer New Member

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    Just to clarify something, NCM had a 25% option in Tembang valid til 31st March 2011 and it wasn't taken up. The problem is with a 40mill market cap they are a take over target for NEWCREST in the near future.
     
  5. Goldrush

    Goldrush Member

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    Thanks for bringing this one to our attention, I got in today for an average purchase price of .286
     
  6. Ernster

    Ernster New Member

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    Why is that a bad thing? If they get bought out by Newcrest what would that do to the price?

    Thanks
     
  7. Goldrush

    Goldrush Member

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    If they end up getting brought out by Newcrest it will be at a premium of today's price but we wouldn't see a significant gain like you could expect if SUM were to go it alone and develop the mine themselves.
     
  8. even flow

    even flow New Member

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    nice one bison.
    will deffs be looking into this one.

    good to see management has a decent holding too...
     
  9. BisonTHEdestroyer

    BisonTHEdestroyer New Member

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    Sorry i have been away. Their Tembang project which is 100% owned my SUM and has nothing to do with Newcrest will start production Q1 2013 mining size at this stage and will increase is 1million oz og gold and 13million AG with potential upside (aim for 70-80k per yr and 700-800k of AG per yr).


    Their Tandai is joint with Newcrest, and gives them a 30% share also if Newcrest meet obligations.
    http://www.thebull.com.au/articles/a/18695-newcrest-gets-sumatra-approval.html

    SO with a 40million MC - looking good. See todays article in the bull
     
  10. BisonTHEdestroyer

    BisonTHEdestroyer New Member

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  11. Goldrush

    Goldrush Member

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    Great strong finish to yesterdays trading, I'm up 31% on this one so far. Thanks again mate for bringing it to our attention. :D
     
  12. BisonTHEdestroyer

    BisonTHEdestroyer New Member

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    No worries Goldrush and others. Sumatra Gold will have a HUGE future. Production at Tembang will commence q4 2013 so hold onto this one.
    Also noticed the HUGE lag in stocks prices compared to bullion prices. This will catch up and you are better off getting in early.
    SUM project with NCM which they have 30% in with in potentially going to be MASSIVE.




    As for gold and silver stocks, recent interview with James Turk on KWN, he had this to say:

    When asked about the underperformance of gold shares Turk responded, "It's depressing to see the mining share action today with gold and silver putting in such strong performances. But don't let your emotions fool you and send you in the wrong direction. Sometimes the markets really do try your patience and this is one of those moments that we are seeing right now in the mining shares. KWN readers should continue accumulating the mining shares because at some point in the near future we will see a move that will be absolutely breathtaking."


    Turk was correct to note the underperformance of the mining shares. As Pierre Lassonde said in his last KWN interview, the mining shares were already one standard deviation away from the mean and the situation has worsened since that interview. Keep in mind that the mining shares will move from dramatic undervaluation to overvaluation and you will want to make sure you participate in that sensational price restructuring. As Turk stated that move in the mining shares, "Will be absolutely breathtaking."
     
  13. Goldrush

    Goldrush Member

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    I have chosen to put more capital into actual miners than holding Physical PM's as I believe we should see significant upside in the miners once the masses catch on to Gold / Silver and it will be their preferred method of exposure to this investment class.
    I have only owned SUM for just under 4 weeks and it has already rewarded us with a 32% increase but I intend to hold for the longer term to take advantage of the real move in share price once things heat up. The plan will be than to have a staged sell off with a capture of original outlay plus a profit and than let the rest ride.
     

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