Re: San City........Question...
in response to
by
posted on
Aug 30, 2008 06:22AM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
Mr. Bob.....
I think everyone involved in this play recognizes that there is a weakness on the communication side. Even the Company has acknowledged it and have made some efforts to improve it. The changed website a year or so ago was a result of that (and yes it should be upadted more often). I think that many have told them to get a new IR department. To date, that hasn't happened.
While improved communications/IR would certainly be nice and would help the company in its presentation, I do not agree that it would move the share price (at least not for the long term). PR's and nice presentations generate some interest, but it is the real numbers that support the value and so far we do not have the numbers we need in production, gold sales, nor in the updated 43-101 we are still waiting for. On the company's side, that is what is hurting us. On top of that, we have the significantly dropped price of gold - the "shine came off gold" and changed the focus of the larger investors (hedge funds, etc). This is what has brought us back down.
So, while you have made your point about communicaions, IMO that is not the main issue. While I agree the company could and should do better there, I prefer that they grow the production. They are working on that (once again we we would like it to be quicker, but I also recognize that this is an enormous task and they are trying to build a solid foundation by building slowly and steadily. Their focus in not on a quick SP hike to make us feel good, but on building a long-term, growing company that can sustain itself for years to come.)
However we feel about it though, this play is what it is, and we will have to adjust ourselves to it or find another play. I personally expect that the SP will see some more downside before it rises, but think we should be back above $2.00 later this fall. If the 43-101 comes out and the TSX uplisting occurs, that would certainly help. JMHO on all the above.
NLion