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Sulliden Gold Corporation Ltd T.SUE.WT



TSX:SUE.WT - Post by User

Comment by December3on Apr 14, 2012 12:29am
325 Views
Post# 19793506

RE: why is s/p going down?

RE: why is s/p going down?

1)  POG has gotten hammered this year and Gold Stocks are out of favor - everyone is dumping them.

2)  This is a Forbes & Manhattan company (Stan Bharti) - so it will continue to dilute shareholders like crazy.

3)  Once they get done drilling off the resources, SUE would need to raise $100MM+ in cash to build a mine here. [Dilution]

4)  Social/political issues recently in Peru haven't been freindly to mining, so investors perceive a higher risk here.

5)  With low grades, unless they can bulk tonnage mine here, they will need 2000 POG to turn a nice profit.  Maybe if they can get LARGE economy of scale 1500 POG will work, but they need more drilling to get there.

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