margin calls, page-29

Hi Chris,
this is exactly what I said -

"I do think that many around the globe are not realizing that the current situation is very different to 2008. This is not a debt driven crisis (although that could potentially follow), but instead.. the global economy is freezing up due to a perception that the C19 virus will basically stop all operating businesses."

I agree that the financial system itself is highly over-leveraged, I also clearly state that the virus is the reason for the initial falls, now its all about the debt and that basically, when the global economy shuts down, most businesses wont be able to support the debt, even at zero interest rates.

SAR has a little debt, but... unlike many businesses, its only product, is in such high demand that physical stores are running low on inventor, globally.
That for me, bodes extremely well. The small smack down in the gold price has nothing to do with fundamental demand, and in time, like all markets, it will balance out, the the actual paper price playing catchup. I feel fairly confident that SAR will outperform most, as it will be a huge cash generator, will quickly start paying a dividend in a time, when almost all other industries are going to be contracting (i.e. the banks look good on their current dividend payout, but only the very naive can think that they will pay out the same amount over the next 12-24 months (they will just want to survive)) and will also have a nice pile of cash to look for the next asset to grow further,, as I think within the next 2 years, they will be a 1m ounce producer.
All for a bargain price of less than half Northern Star.