shaking the tree, page-18

Gold companies are notoriously bad when it comes to their POG assumptions when valuing their assets - SAR is no exception.

Meerkat has a point - a 60 million loss (even if expected) isn't a good sight and is likely to have some impact on the SP. However, as has been alluded to by other posters on this thread, this in isolation wouldn't have led to today's fall. Low volume hardly suggests a dumping. Plus gold stocks across the board were down.

After the latest writedown, I trust SAR will be more conservative with their POG assumptions (when valuing their assets). We may even see a "writeup" at some stage in the future.

Here is a good article on this topic:

http://www.thestreet.com/story/12021220/1/write-downs-death-sentence-or-opportunity.html

Cheers,

Deme