sgw in trouble

Well today we hit fresh new at least 11 year lows with the company stating that they will not be paying a dividend.Analysts said the zero payout to shareholders came as a surprise.

"It is probably an indication that they are not travelling that well, given that SOG prides itself on being a high dividend payer," one analyst said.
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Also in todays quarterly it seems to say that aswell as the latest director leaving it looks as though the ceo may be next if you read between the lines.
Profit was down 80%.
"Earnings from the gold division were reduced by lower-than-forecast gold production and by higher costs primarily related to the treatment of lower grade ore," the company said.
Dont forgot SGW has to produce enough gold to fill their hedging requirements or buy the gold on market.
The review and restructuring of its gold and foreign exchange
hedge books will continue,the company states,im sure they are reveiwing it a lot.
Mineral production was down aswell.

Comments like this really dont help much either...."However, a significantly improved second-half performance from the gold operations, in line with estimates, is required for the company to meet the lower end of its full year financial targets as advised at the annual general meeting in November 2002," it said.

Just to meet the lower end of projections which have been twice recently downgraded the company says it needs significantly improved first half performance.

SOG also revealed that it intends to appoint an interim chief operating officer, pending the appointment of the new MD.
So we are going to have more uncertaintity with management,there are also calls for the lalors to leave and i beleive peter has said he is looking at leaving once a new md is in place.
This really doesnt place much confidence in the future of SGW,the lalors started the co and now things are getting a little tough everyone wants out,seems a bit fishy to me.

Plus their is still a lot of talk around about the company's recent denial of stockbroker rumours that one of its banks had withdrawn its support,remember most rumours stem from a truth somewhere.


This co is in big trouble and im suprised the shares held up as well as they did,remember where theres smoke theres fire.