The Sirius Resources feasibility study released on Monday failed to live up to the company's one billion dollar market value
John Robertson
PortfolioDirect
The Sirius Resources feasibility study released on Monday failed to live up to the company's one billion dollar market value. Of all the stocks in the sector, Sirius might be the one to most deserve being priced for perfection. Investors would have a dramatically different view of the whole sector if Sirius was typical. In speeding to production, however, Sirius is going to market with a modest 10 year mine life. The feasibility study foreshadows pre-tax project cash flows of $2.7 billion. Kasbah Resources is in a similar development position. Its March feasibility study foreshadowed a $260 million pre-tax cash flow. The size is different by a factor of ten but the market values are different by a factor of 30. Kasbah has not created the same excitement in a depressed market but is more typical of the risk/return balance on offer.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
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