Thanks for the posts
posted on
Mar 30, 2008 02:15PM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
Welcome Somchai and Lynx...I hope you will find this a better environment for profitable discussion.
Thanks for the good post, Tidbits, with Scott Wright's comments. Down near the end of his essay he writes:
So once you muster up the courage to trade in the junior realm, the next major task is to identify the stocks that have the highest probability for success....
....first it is important to understand the qualifications and history of the management team. In junior gold exploration it is usually nice for the management team to have a strong technical background. If this area is lacking they need to surround themselves with an experienced team of geologists and mining engineers.
....From here you’ll want to take a look at the quality of projects and the strength of the resources that may already be identified. In the process of doing all this it is also important to consider the geopolitics of the countries in which the projects are located. Then of course you cannot overlook the financials. Examining the balance sheet and understanding the impact of previous financing decisions can be very telling.
.... today, it can be quite an undertaking to sift out the winners.
Given that there are a growing number of juniors out there, I think SGR stands out very positively from most. We do not just have a bare patch of land needing exploration and development, we are far past many others who are still at that point. We already have a mill and are producing gold. We have a long history of production. We have new zones with richer veins than ever before. We are close to the day/month when we will be cash flow positive. We already have raised enough funds over the past half a year to carry us through to the day we should be cashflow positive. There is a lot that can be said and has been said to make this company one of the best picks one could find for a junior gold producer. IMO
But, SGR is still not strongly on many radar screens. Occasionally when I read commentaries on the gold industry in Canada, there is a list of 20 or more companies showing their production and growth - SGR is usually not included in the list. We need to become more widely known in the larger investment community in order to become a option more investors would consider, and that would help our SP to move up. I think that we also have to get our production numbers higher before we will gain that recognition. That is being worked on day by day as the richer veins come closer to full production.
NLion