Following BigMs good suggestion to be wary here - I divested out of SVG into other stocks.
Now these have gone well - I have a bit of free cash to reinvest here, and elsewhere.
SVG Share price is at 4c (which is at 0.1c pre consolidation) an absolute bargain.
However if their AISC continues to be as poor in 2024 as 2023, then it goes from bargain to another b word (a bad b word for investors)....
Like a footy game if you are down 10 goals in the final QTR - not even the Mighty Mags (or Galloping Giants) will be getting up, and its best to pack up and leave the stadium before blood hits the floor.
SVG have to perform - have to be profitable, or this latest cap raise is just a bad joke for mum and dad investors and retirees or pensioners who are relying on a ROI.
https://tenor.com/rdJi.gifhttps://tenor.com/lgW6sIwetc1.gifThe gold companies I did well with during the divestment period were:
EMR Emerald Gold - an absolute ripper with x4 ROI, in Cambodia with high g/t and low AISC
CMM Capricorn - just very very solid gold
PRU African based gold mining with very reasonable AISC
RIO - say no more, solid gold
NST - solid gold
GOR - solid gold
RMS - solid gold
DCN - GMD - rebounded after GMD took over St Barbara for a song
So cash to play with now without maximal pain.
... I also like the look of Barton Gold lately, WWI, ALY, DRE (Big Ms pick) ARV, CTO, DEG and TIE.
And all the mining infrastructure rebound companies like ANG, or green (labour) infrastructures like CEN and MCY are just really going sold.And you can't go wrong with Harvey Norman HVN. Just solid steady company with a solid management team.
Lots and lots of great stocks out there. Don't despair.
Compared to these SVG has been a huge disappointment in their plant processing, mining and weather management as reflected in their nearly liquidated share price.
Really its not that hard - find a high g/t resource, explore it, get approvals to mine, dig it up, transport it, process it at lower cost than you sell it for (or just stockpile it until you can process it economically) and make $$$$ for your investors.
Yes, I am following the stocks suggested by kind fellow posters such as KIN, WKT, VTX.
I'd encourage other posters to at least consider an escape or exit plan here if they take up the EO to keep your sanity.
And don't go toxic on the 'downrampers' who IMO are just talking straight and out of concern for mum and dad investors getting trapped here.
Advice to invest in MAAS (MGH.ASX) has been really good - S Bizzells transport company that is operating very profitably and the SP is reflective of this. Look at their happy hotcopper threads.
They are even doing a share buy back !!! while SVG is scraping the bottom of the barrel for an EO buy it at lowest possible bargain share price after a year of steady losses; just to keep the operation going.
Other than these - the Bix oversaw
AJQ turn into a wreck now for LTHs - with DGH losing out in the bid to take ownership from the administrators and any ROI for regular punters is uncertain with ADZ, even though AJQ continue to pump out the gas and oil, making profit, massively paying off debt, and had large contracts in the pipeline with Shell and Lupuca Diamonds (LOM.ASX).
STX was an absolute success story.
So IMO only invest in the EO what you would be happy to lose in a moderate to high risk return punt.
I would take the cautious advice of the BigM with SVG.
I wouldn't suggest backing up the truck until they give an announcement of low or target AISC being reached for at least 2-3 qtrs. I'll bail if they keep going like a lost Willy Wonka, but if they go hardcare like Dune - yeah, great (Tim Chalamet reference).
Don't invest in SVG if you thinks its a falling egg, but if you are a punter (like me) then your investing on it being a tennis ball and hoping it lands in the tennis court and ready for a solid return if their hub and spoke strategy works.
So IMO maximal caution should be applied to any SVG investment with consideration of risk-reward, and their high debt and volatile beta metrics
Thanks for the education here fellow posters - I couldn't pick a better stock for an 'education' and can't wait to read their final chapter (boom or bust) to further help my stock behaviour education.
To all posters and punters. Stay happy, get wealthy and keep healthy.
Merc Out.
SVG: WONKA OR WARRIOR?
