Panic merchants generate golden opportunity Date: February 22, 2013 - 11:55AM
A big advantage some companies have is that they have sold their gold forward at higher prices. One example is Saracen Mineral (SAR), which has tenements and gold deposits north-east of Kalgoorlie. This miner sold roughly 30 per cent of production forward for a few years at just under US$1700 an ounce. Says Grigor: "Saracen was criticised a month ago when it did the deal because it sold gold forward but now looking it's looking smart. "You should be getting rid of high-cost gold producers and feel comfortable holding those with lower costs and good growth profiles like Saracen."
SAR Price at posting:
34.1¢ Sentiment: LT Buy Disclosure: Held