Ann: Quarterly Activities and Cash Flows Report-SAU.AX, page-2

The report is good. It shows the gradual increase in gold produced and better mill grades, just like the company said it would happen in July. First cash from Metals X will come in December and it should have some $ 15m in the bank by April 2017, which is equivalent to the MC right now.

We are now overshooting to the downside, and I see little chance of going much lower from low 30's - unless some large holder *really* needs to dump their shares immediately. But when the first dollars start to show up in SAU's bank account, this thing will go way up.

There are several new exploration opportunities in the pipeline and all SAU needs is *one good hit*. For it to go down, it needs the new exploration efforts (3 locations in SK, Cannon underground, Tooting Bec, Glandore and Cowarna) all to come back negative in the next two years. Other explorers could easily fail quickly after two or three bad exploration campaigns (due to debt weight), but when you have $15m in the bank, and a cost of $100 per meter of diamond drilling (non-KORES subsidized), you can drill a lot of holes.

Probability in on SAU's side.