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Signal Gold Inc T.SGNL

Alternate Symbol(s):  SGNLF

Signal Gold Inc. is a Canada-based gold development company. The Company is engaged in advancing the wholly owned Goldboro Project in the Canadian mining jurisdiction of Nova Scotia. The Goldboro Project is an advanced exploration and gold development project located approximately 175 kilometers (km) northeast of the city of Halifax, 60 km southeast of the town of Antigonish, and 1.6 km north of the village of Goldboro, on the eastern shore of Isaac’s Harbour, in Guysborough County, Nova Scotia, Canada. The Company has consolidated approximately 28,525 hectares (285 km2) of prospective exploration land in the Goldboro Gold District.


TSX:SGNL - Post by User

Bullboard Posts
Comment by 160kon Jun 07, 2013 3:56pm
136 Views
Post# 21499107

RE: Nop - A share buyback is no option!

RE: Nop - A share buyback is no option!

I have been unwell lately and have not kept up with the latest news but from what I have seen today with respect to the last 2 releases, the news could not be any better.  Niner I usually agree with you and I think we and a few others here are exactly on the same page with respect to the future of ANX.  Except when it comes to this notion of a Normal Course Issuer Bid.  In my opinion, it will not make any difference and likely, in this kind of a market for gold producers, a buyback or a consolidation would leave us deeper in a hole.  A buyback is a waste of money right now especially when gold is on such shaky ground.  We need all the cash we can accumulate for further development of the Western Extension and the Romeo and Juliet zones which will likely be new mines going forward.  Add in all of the rest of the Peninsula to Ming's Bight, and we are sitting on possibly a dozen more mining sites.  This will require cash to develop and in my opinion also, Dustin should be thinking of expanding the Mill facility itself to increase throughput.  In order to make up the difference in the shortfall in the price of gold from where it was 6-12 months ago, we will need more throughput; a higher mixture of higher grade ore from the different new zones; an expanded ground and technical crew; more and larger trucks to haul and extract the ore and least but not last, growth through acquisition or possibly joint-venture.  An M and A would probably mean the issuance of more treasury stock and a cash component.  The entire gold producing sector is suffering and I do not understand why people here cannot understand this.  Investors are being conned into believing that there is no future in small gold producers at these current prices for gold bullion.  These rumour mongers insist that small producers like ANX would need at least 1300$/oz just to survive and pay overhead including the costs associated with running the corporate side of the business.  Look at Barrick Gold at about $22.00/share.  This is ridiculous. 

A consolidation would wash us all out, if we went that route.  They rarely work at this level.

What has to stop happening is the short selling of gold paper.  There is enough positivity surrounding the Anaconda story right now to have expected at least a share price of .32cents.  I do not know what the answer is but buy-backs, consolidations and other such gimmicks to try to stimulate the share price should not be needed at all, given the tremendous potential for success of this particular Company.  A roadshow across North America could help but I believe a joint-venture with a well-known major operator might be the medicine to cure what is ailing this stock.

I am not buying right now, just sitting tight and observing the situation.  It is tenuous and if gold can not recover back in to the 1400$/oz level and stay there, then we should be worried.  But only time will tell what actually will happen to gold.  Dustin has agreed to think in terms of diversifying out and this could be the most potent medicine of all.  Let's hope so!

 

  

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