Queenstake Resources

[Scorpio]

After watching Queenstake put in a very nice day today, I got to wondering.
I have seen an awful lot of good press about this one lately, so I thought, why is it at .60 as a producer?

Well, lo and behold they have 300 Million shares outstanding. Reminiscent of McWatters mining. Another producer gone awry. Anyway, with that many shares outstanding, I don't care if they have a little gold or not, it is going to be spread VERY thin among the shareholders. Probably meet the same fate that McWatters did, an initial push to the upside, and then down she comes.

If you want to live dangerously, and try to scalp some quick profits maybe, but to buy and hold? No, there are better choices out there.


Thanks, but NO Thanks!

S

[FoundingFathers]

Scorpio -

That's one of the reasons I like Vista (VGZ) so much. Only 12million some
shares outstanding. All of the mines are in the US. The have proven reserves of 7million oz. gold. The mines are not the best quality however - with the projected cost to extract the gold @ an avg of about $250/ounce.

If I take $380 (POG) less $250 = $130oz X 7million oz = $910million value of gold in the ground AFTER extraction costs.

12.76million shares outstanding X current price of $4.10 = market cap of $52.3million.

Paying $52million for gold in the ground worth $910million net of cost is not too bad.

All of this does not include all of the silver in their unmined properties - possibly over 100million oz. However, their cost to extract the silver is still higher than the current POS.

overall, an interesting play PM play IMO.

Not investment advise - due your due.