TSX:SGR.UN - Post by User
Comment by
GoldSilverbug77on Mar 21, 2014 12:26pm
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Post# 22351873
RE:Stem, SP and company have little to do with each other
RE:Stem, SP and company have little to do with each otherMy humble opinion is that most of the companies may only survive for a while by mining HIgh grades. Beyond certain point they need money to find more high grades and then dig them out as their mine plan gets screwed up. San may need $1500 and above gold spot price to be even cash flow positive.
The more Gold stays below, they will continue to bleed and pile up more high interest debt and dilute us (existing investors) to death.
The last trumph card that all companies can pull out is to implement reverse split ( consolidate the shares ) once the equity blows up beyond limit.
As most of us here will agree, this is a extreme high risk high gain and the more they dilute us, less is left in the table for existing investors.
GSB.