TSX:SGR.UN - Post by User
Comment by
hydra100on Nov 29, 2010 9:22am
311 Views
Post# 17769583
RE: monkey man
RE: monkey manOn what basis do you think Dr. Monkey will eat his words? What will move SGR shares upward?
1. Drilling results? Has not happened lately in fact gone down on news.
2. Higher grades of ore? They have nice grades but are not enough to move stock upward. See #1.
3. Making profits? Long, long time before year end and 1st qtr results out so forget about knowing anything until then. I do not think they will turn a profit any time soon and I am talking years. Running out of low cost ore and as you have seen using 1800 dollar ore. Selling at a loss and how long can one keep that up?
4. Higher gold prices? How much higher is needed? They are at a record high now. Scotia thinks gold at 1500 by end of year. Is that enough? See #3.
5. How much lowering can they do? The price of gold has gone up but so has everything else. Energy, wages, benefits, (pension plan for workers), etc has all gone up. Can they lower expenses faster than they go up?
To achieve profits when producing at 1800 is near impossible unless gold goes way up. See # 4.
Feel free to enlighten me with your dd.