TSX:SGR.UN - Post by User
Comment by
WinstonSmithon Sep 23, 2013 7:00pm
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Post# 21761446
RE:BELIEVING IN FUNDAMENTALS
RE:BELIEVING IN FUNDAMENTALS
San Gold is in a unique position to profit from any surge in gold price. They are a high cost producer, but a producer nonetheless. It's hard to figure out exactly the cost of production per oz but it looks pretty close to break even at 1200...so with each 100 buck rise in the gold price the profit is doubled and should the gold price double to 2500.00 bucks the gross profit will increase 10 fold and presumably the SP will follow. This is a perfect place to place a levered bet on the pog.
It still has enough operating capital to see it through any further bear raid on gold. Sprott and
Dynamic funds are building positions in this one (they are the two most astute PM investors). You should too.
disclaimer: long SGR and increasing.