buy again, page-22

Very happy to be buying again at these prices. I can't believe the opportunity that has been presented once more by the market. Don't worry about what's going to happen to the price this week or next, worry about where it will be in 3 - 6 months.

Have a look at the facts:

* extremely profitable operations with cost over the past 2 months been shown to be reducing (below $800 per oz)

* long term production pipeline already established, with more upside surprises to come as more drilling is completed

* production upgrades fully funded and on track (in fact ahead of schedule)

* SAR operate in a "low sovereign risk environment"

* forward PER is at historic lows for many gold producers - especially SAR

* fear has gripped the gold market because of the fact we have seen 12 years of price growth, so to many they think the price has to fall at some stage (like the punters at the casino that bet on red after black has been spun 5 times in a row). There's a clear lack of thought going into the price drivers, it's just the market reacting to a school of thought that is disassociated with the real price fundamentals.

I just draw your attention to the announcement this week that George Soros has made US$1billion+ on positions taken against the yen. That was because the yen was the currency of choice when international investors were getting out of US$. It was not priced on fundamentals, but fear. This same fear is what is driving the price of gold.

I believe the first sign of weakness in the US$ recovery will see a sharp reversal in the POG. We have plenty of levers/ catalysts to drive this action - the least of which is the upcoming release the FOMC meeting minutes.

We haven't seen the end of things yet, just the beginning. I'm continuing to buy at these levels.