Christos Doulis comments: http://www.theaureport.com/pub/na/14713?utm_source=delivra&utm_medium=email&utm_campaign=Gold%20final%20streetwise-reports%2011/09/2012%2016:09:57

"TGR: Another producer in a similar stock price trend and geography is San Gold Corp. (SGR:TSX.V). What is the story there?

CD: San Gold is another company that I was neutral on for some time and have recently gone positive. It's a situation where no more capital is needed to complete development. All required funding comes from internal cash flow and existing resources. San Gold had a real problem in the second quarter with its mill shut down for a month. That hit its Q2/12 numbers.

The new CEO, George Pirie, has started to turn San Gold around. Part of the current situation with the stock may be the result of the stock being oversold at the beginning, where the company was promoted as a 150 Koz high-grade producer. It's now a 100 Koz producer that is growing.

Both St Andrew and San Gold are stories that were promoted faster than they could deliver and the market punished them severely. At these price levels, both are buying opportunities."