Ann: Further drilling success for Saracen, page-6

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flaming

950 Posts.

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14/07/17

10:28

Post #: 25862919
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Originally posted by speculator101 ↑

Fight, I totally agree with you. Excellent drilling results across all of its main deposits, which indeed bodes very well for upcoming resource/reserves update. Still a little surprised at how far SAR is lagging behind the likes of NST, RRL, SBM and EVN.

@flaming - if you get the time I think it might be worth your while looking at SAR again. I would argue it is the underdog, after perhaps being treated as something close to a good performer last year.

The company does have a fairly average hedge, although right now, all of this years hedge is in the money, however all the $1500 priced hedge... is not good. BUT - once SAR hit 300k p.a as I think they will have in the June Quarter, the hedge becomes much less of a drag, as the vast majority of its gold will be selling on spot. If the POG in AUD heads towards $1500... I would actually like to see SAR close out some of its hedges. Its costs are going to come down significantly over the next few years and I think the upcoming bull run will occur within the next 12 months... so I would like to see them have more out of the hedge.

I def don't hate you. I appreicate your opinion on the stock. As its pretty quiet on the SAR threads. I guess they do not have a big following, for reasons beyond me.

I would sum it up as follows. It just built its second mine, without debt, or any cap raising, fully funded from profits... yes, costs have been high, but... that is what happens when you commissioning and do all the development too. That is now all done. Now... its about lower strip ratios and higher and higher grades. SAR is spending up big on exploration, because it wants 10 year mine lives for both its plants. It will get that soon enough. Then... I think you will see SAR do what others are not, T/O a smaller wanna be producer, perhaps the likes of CMM or KIN. That would give them a production rate close to 400k p.a.

Anyway I hope you and the market are wrong. SAR is no BLK.

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@speculator101

Thanks for your kind words and a very good assessment about the company's affairs.

But I'll do you and all the other holders a favour and not buy SAR.
Believe me, if I start buying this will collapse. I just have that unlucky touch.......
So I will keep watching.....on top already terrorised by so many dogs in my portfoli0.

Couple of years ago I started buying

MOY- Collapsed
SLR- Collapsed
RMS- Collapsed
BDR- Disaster
TRY- Destroyed
KCN- Disaster
KRM- VA

Even RSG with all the bells and whistles now....the moment I touch it.....can't get its head above.

One thing I will say is SAR, not much retail but always had a huge institutional following. It's a big boys stock and I'm a small fry.....they will crush me.

All the best.

SAR Price at posting: $1.15 Sentiment: None Disclosure: Not Held
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