SIH 0.00% 0.3¢ sihayo gold limited

quarterly report is negative, page-3

  1. 1,870 Posts.
    Thanks for your highly colourful descriptive of "crap" that you have used Roguetrader, Lol.

    To use the descriptive of "brilliant" for the quarterly is interesting. Consider this:

    Whilst SIH cash balance is better than it has been for a long while its clear that most of the money will be blown away in the current quarter, to continue drilling (8 rigs!), and most of that drilling effort is just for infill drilling of the existing Inferred Resource! (8,000 metres quoted by SIH).

    Remember if SIH claims it has averaged US$7.50 per discovery inferred ounce to date (SIH presentation of Nov 2009), that means IF they were as successful in the future (and based on the drill results reported that seems UNLIKELY) then to just achieve another 500,000 ounces of Inferreds (aim is to get another 1 million ounces!) it will cost ANOTHER US$3.75 million, at exchange rate of 90 cents (unlikely now) ie A$4.166 million.

    At a share price of 6 cents (also unlikely now with it below that, other than to the Asian investors!) that represents 70 million shares being issued! Just to get Inferreds, never mind the infill drilling cost which must therefore cost similar to what they are spending on the existing infill drilling.

    Use any descriptors that you like, the fact remains that SIH will be under huge cost and therefore price pressure to perform whilst they are just drilling out Inferreds with little else to report in the next 3 months that hasnt already been reported over and over again.

    At a time of a falling price of gold to boot, if that is a brilliant" outlook I would hate to see a bad outlook for SIH.

    (Don't get caught being asked to turn off the lights when everyone else is gone!).


 
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