After having a nice talk with RK today about the smelter progress, I picked another 200k shares at 4 cents. Also Embry had some good comments today on King World that were tailor made for recommending shares of small cap mining stock like SFMI:

“So what’s essentially happened there is all the easy open pits, of decent grade, have been mined or are in the process of being mined. Consequently, you are continuously being faced with lower and lower grades and you are having to go to more geopolitically unpleasant places to find gold.

So I share the opinion of Aaron Regent, CEO of Barrick (Gold), who a couple of years ago in a speech in London actually alluded to ‘peak gold.’ Meaning the annual production (numbers we have seen) may not be exceeded again because of the problems that I just mentioned.

So anybody that believes the gold price rise is going to be alleviated by added supply from the mining sector I think is wrong. I think the business is going to be very hard and if you do have a company that is mining a decent quality ore body, in a geopolitically attractive area, you’ve got a great asset.”