TGR: I understand you have a sell story. Tell us about it.

Christos Doulis in The Gold Report

International Gold Analyst Christos Doulis Names Four Miners that Could Make Money at the Margins—and One that Probably Won't

http://www.theaureport.com/pub/na/15115?utm_source=delivra&utm_medium=email&utm_campaign=Gold+final+streetwise%2Dreports+03%2F29%2F2013+15%3A21%3A04

"CD: San Gold Corp. (SGR:TSX.V) is the only Underperform in my universe right now. It has the Rice Lake mine in Manitoba. The operation has just struggled and absolutely failed to deliver on the expectations company management set for the project. The capex budget that came out back in February was for me the death of this story. It showed that there is no free cash flow for at least a couple of years to come. It's just going to be a money pit. In fact that was the title of my note. Shares are trading around $0.25/share. I have an underperform rating on the stock. My $0.30 price target was set when the stock was at $0.50, so on paper it might not look to be a Sell right now, but I have a lot of fear here.

These guys just did a $50M convert, which will fund capital development. It's a Hail Mary pass. If management is successful using this $50M, it might in three years start generating free cash flow again in significant amounts. The $50M convert was the last kick at the can."