SXGC stock is up 60% this year, along with the strong sector rally. As a developer, it has some cash, no revenue, losses and negative cash flow. Insiders own 2% but have been net buyers this year. SXGC's flagship asset is the 100%-owned Sunday Creek project, located 60km north of Melbourne, covering 19,365ha of granted exploration tenements and 1,054.5ha of freehold land. Recent drilling has shown strong hit rates, with over 60 intersections above 50–100 AuEq g/t-m and 56 intersections exceeding 100 AuEq g/t-m, representing some of the world's highest-grade gold-antimony exploration results. Exploration targets have recently doubled, with contained gold-equivalent estimates increasing from 1.0–1.6 Moz AuEq to 2.2–3.2 Moz AuEq. This growth results from both tonnage expansion and improving grades (8.3–10.6 g/t AuEq), with only 67% of the current drill area considered in the estimate, leaving considerable exploration upside. It has some other assets, and three analysts cover the stock (avg. target $6.58). It needs to be considered high risk, and the sector will continue to be the main driver of performance, but there is good potential here, in our view.
5i Research Answer: