FT86, the share price of SAR is always backed by the strong price of gold. Given that gold has risen a little too fast this year (my opinion only), there is some risk of a correction back to $1500-1600/oz, dragging gold producers backwards. Also the $A/$US exchange rate figures into the equation.
However, Saracen has done absolutely nothing wrong in the past 3 years. The management team are excellent. If anything, they are still undervalued as a result of global and local volatility. I have no doubt that the 68c placement will be fully subscribed, and even if Saracen drops back to 55/60c on a major POG correction, they will recover and prove to be an excellent medium-long term investment choice.
Personally, I will take up the offer if I can find the spare cash.
