St Andrew Goldfields Ord STADF

RE:RE:RE:How bout that Taylor grade!

[SASFan]

I've got no idea what the stock does short-term but I've never been more bullish on the company's operational prospects

Gold in Canadian dollar terms is back at levels not seen since 2012-2013 when gold was US$1,500/oz. Despite the gloom and doom in the general gold mining industry, Canadian miners are looking great.

We're finally turning the corner on Taylor- instead of the cash drain we've seen over the last couple of years, the mine is finally going to contribute significant FCF.

We have significant exploration potential across SAS's mines.

Obviously now we're wedded to KGI so we don't get all of the benefit. However, I think there is still upside in the combined entity. KGI has 10+ analysts covering it and most seem to like its story on a standalone basis. Yet none of them have any clue on SAS's assets. SAS will contribute something like 45% of the ounces produced for the combined company in 2016. I think it's going to produce more FCF than KGI in 2016 which is going to totally surprise analysts come Q1 and Q2

Just my two cents but I think there's more room for upside