OTCPK:STADF - Post by User
Post by
redawnlivon Aug 18, 2015 2:19pm
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Post# 24028610
interesting read
interesting read
"St Andrew Goldfields Ltd. is attractive for me because it is priced right. The company has growth potential and no debt. It's trading at around $0.28/share for a market cap of less than US$100M. The market has not taken note of St Andrew because of the tight shareholder structure. A single shareholder owns around 50% of the company so brokers have not really covered the stock, and it is not very liquid as a result. But when you look into the company a little bit deeper, it is currently producing around 100 Koz gold per year in the Timmins mining district on Ontario, Canada, but in Q4/15, it will bring the Taylor mine into production. That could add another 20–30 Koz of high-grade and low-cost production to its portfolio. . .in the last bulk sample, St Andrew put out a very good results from Taylor demonstrating the grades were 20% higher at almost 9 g/t than its forecast. The stock price didn't really react on the news, but I think that's just a function of the market. There is no interest in the sector. This is an opportunity because if it can grow production by 25–30%, it doesn't need to dilute shareholders, and it has another high-grade mine, which is open at depth, gives free cash flow and has no major royalty. That is something investors will really have to pay attention to. Taylor is going to change the whole production profile and financial situation of the company."