SEA currently has $206M cash. Insiders own 3%. The company has very large undeveloped reserves/resources of gold. It has no mines yet, but for a per-ounce exposure to gold it has just about the highest leverage in the sector. If gold ever goes to $3,000, this stock will do exceptionally well. It has several 100% owned gold projects, in BC, NWT, Yukon and Nevada. it continues to develop these, and cash burn was $15M in the last 12 months. We know management, and they have good industry experience, though certainly not a perfect track record. We believe the company has no intention of building a mine and is only focused on reserves, for a 'one day' sale to a major gold company. Its KSM project also has significant copper reserves and we believe this will be partnered or sold (eventually). All-in, we would consider it OK but hardly compelling unless one is a true gold bug. We would of course prefer positive cash flow, and the company has been around a very long time, and shares are down more than 60% in the past 15 years.
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