I sold all my San Gold Corp. shares this week. The reason for selling is that San Gold is far less undervalued compared to other junior gold miners just entering production—in particular Gold-Ore (GREXF) and Metanor Resources (MEAOF). This action demonstrates the importance of periodically assessing the relative valuation of different companies an investor holds or is interested in holding.

The following analysis is what drove my decision to sell San Gold. Note that Gold-Ore and Metanor have similar Target/Current Price Multiple valuations and San Gold’s multiple is much lower.

San Gold Corporation
CURRENT PRICE: 1.46
2009 TARGET PRICE (10x Projected Cash Flow): $2.04
Target/Current Price Multiple: 1.4x

Gold-Ore Resources
CURRENT PRICE: $0.76
2009 TARGET PRICE (10x Projected Cash Flow): $3.27
Target/Current Price Multiple: 4.3x

Metanor Resources
CURRENT PRICE: $0.99
2009 TARGET PRICE (10x Projected Cash Flow): $4.12
Target/Current Price Multiple: 4.2x