MovementIn spite of a down day for gold (at this point any way) , SMF has stayed solid.
Quite sure any comments on this board about IMG are simply just that, comments and could relate to any number of mid tier producers looking for additional Ozs. I think SMF would acquire but I am sure anything worth buying is going to have a huge premium.
There is a disconnect between the price of gold and gold equities. The only reason that gold equities were shorted and sold off near year end was the perception that gold was in a bubble. $500 per oz later and where is the pop? Eventually equities were bound to move.
Never expect much in the summer and this past summer was particularly volitile. A person could not afford to ignore their holdings and many went cash.
There will be interest in SMF for the next month because old quartery records will be topped, money from the sidelines should come back in, shorts will be covered.
With 3 weeks left in the quarter the price of gold can drop to $1500 and the average price will still be close to $1750.
Profit will be at least $12 million higher than last quarter. Keep in mind Samira's production should be way up this quarter as well. They were to complete the pit wall push back by the 3rd quarter so the grade there should increase significantly.
Not sure if the price of oil will be reflective in this quarter or not. It is currently close to the 52 week low when previous quarters it was at it's high.
September will be a good month.
Wes