A/CYou are right about the market climate being "skittish" - a...

A/C

You are right about the market climate being "skittish" - a climate where bad news gets punished more serverely than warranted. That's why I think SGW has been oversold.

The stock has strong chart support at $2.50 (and its this level where there is appreciable buying depth).

A purchase is not without its risks but this is a market that thows up the odd oversold bargain and I happen to think that SGW is one such "bargain".

I don't expect any rip-snorting dynamic overnight recovery.

On the contrary, there will be a lot of price churning as confidence is rebuilt. The time-frame, as you point out, is the key to a successful investment in SGW.

I hope it will "base" around the $2.50 level ....if not the next support is below $2.00. Then it will be a really long wait. One has to just take a calculated risk, I guess.

The company has not released too much information about the precise nature of the wall slippage at Tarmoola but I don't suppose it is any worse than the slippages that have affected past mining operations. With today's technology, albeit at a cost, it is very repairable. It just slows production down and increases the cost of production. Unfortunately, SGW's gold mining operations tend to be high cost to begin with.

I see SGW's future being more keyed into advanced minerals - tantalum - and the telecommunications industry. An industry destined to (eventually) recover.

Mineral sands would allow the company to pursue a steady and orderly growth.

Maybe, the company would be best served, long term, if it divested itself from its gold mining interests.

Some sort of stategic restructure may well be on the cards.

Cheers, X