I completely agree Gut. I have been in and out of Saracen over...

I completely agree Gut. I have been in and out of Saracen over the past 2 years and just bought more shares for $25k, than I used to buy for $50k when the share consistently traded above 75 cents. Theoretically, the company is more progressed and in a much stronger position than it was then.

I think its a no-brainer and Vinva Investment- the new substantial shareholder obviously thinks so too. They have a strong reputation for spotting value and from my analysis of the period they picked their stock up- I think they've also averaged in at under 40 cents.

The main risk with SAR is the movement of the gold price in the short term. Long term, I think the gold price will be much higher than where it is now, but in the short term, it could fall and were it do so- this would be negative for SAR being a high cost producer. That said, it has hedged 32% of its annual production over the next 3 years at $1,695- so that mitigates some of this risk; albeit that it limits upside from an appreciating gold price.