A Losing Battle on Both Fronts
posted on
Oct 11, 2011 03:41PM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
Evidently Mr. Pirie isn't Napoleon. San is both a producer and an explorer. On the production front we were all both surprized by a decrease in the gold produced for the quarter. They already had enough stopes developed to blend the various grades of ore to reach the their stated production target. The fact that they blew it points the finger squarely at their ineptness. That news release killed a incepient rally and the stock has gone down hill ever since.The market doesn't believe that they will have a 40% increase in production next quarter and even if we do the company has chosen a brainless way of achieving it.
In regards to the exploration results, exactly what is their problem? They give us a few meaningless results from the SG1 mine, which apparently ther're mothballing and nothing else. Nothing else after all this time and drilling and boasting about all this great drill core they have seen. This is starting to look like Custer's last stand.