Good plug for SGR from Blackmont

http://www.goldalert.com/stories/Gold-Price-Breakout-Rising-MidTier-Gold-Stocks for the whole story. Part of the story below.

Gold Price Breakout – Rising Mid-Tier Gold Stocks?

December 22nd, 2009 - 2:49 pm | by GoldAlert
Gold Price News


As the gold price has broken out to new record highs, breaking the $1,200 per ounce barrier, investors’ appetite for gold mining stocks has expanded. In search for enhanced exposure to the price of gold, many are seeking the next mid-tier gold company - the strata traditionally receiving a premium valuation due to its growth prospects. Blackmont Capital tackled the task of uncovering the gold companies that fit this profile in an equity research report titled “The Next Tier in Golds: Ready to Respond.” Their research uncovered Premier Gold Mines (PG.TSX), Romarco Minerals (R.TSXV), Rubicon Minerals (RMX.TSX), San Gold (SGR.TSXV), and Ventana Gold (VEN.TSX) as five emerging gold companies that are set to comprise a new class of mid-tier gold miners. Blackmont opines that while the share prices of most of these companies have risen substantially in 2009, it believes that several additional catalysts, combined with a bullish gold price and gold stock backdrop, will lead to further increases in shareholder value.

Blackmont focuses on which companies have the potential to host multi-million ounce gold deposits at economic grades - it specifically mentions a threshold of 2 million ounces of gold and production levels of at least 150,000 to 200,000 ounces of gold per year. The investment bank discusses its preference for companies with relatively low capital requirements in order to bring a gold project into production or position themselves as an attractive acquisition target for an intermediate or senior gold company. Blackmont mentions cash costs under $400 per ounce being ideal as this lessens the execution risk, notably during the critical start-up stage of the project.

The report identified the five exploration and development gold companies previously mentioned: Premier Gold Mines (PG.TSX), Romarco Minerals (R.TSXV), Rubicon Minerals (RMX.TSX), San Gold (SGR.TSXV), and Ventana Gold (VEN.TSX). Blackmont provides both a qualitative rating and a specific price target for each company’s stock price.

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