From today's latest CIMB broker research (they wont mind me posting this extract). Interesting SAR has the 2nd highest EPS growth rate of all gold companies under coverage.
SAR is my best pick in the small-mid cap sector.
The gold price is weighing on all gold sector companies at the moment, however the reality is that they are all making considerable margins - even SAR which is in the highest quartile of producers. It requires a long-term view. The same pressures are being experienced by other commoditiy producers like Fortescue who operate in iron ore. Again, the reality is that they will still make healthy margins. It will take a while before this fact trickles into the market place and sentiment reverses:
SAR Price at posting:
41.9¢ Sentiment: Buy Disclosure: Held
