well done. guido gang, page-35

Hi Doc,
With respect, I don't view Bernanck as the bringer of good news (from goldminers perspective). Views are that his speeches/comments on QE in recent times implicates more money printing with a resultant spike in gold price. That does not seem the case. It seems to me that his speeches are very maticulously crafted to perhaps send out certain messages for the greater world whilst the US lawmakers have a clear understanding what he actually propogates.- (the world sees a smokescreen which suggest "more papermoney printing" which will lead to spike in gold while the US lawmakers get the real message namely that the US economy is in start-up mode and is strengthining from qaurter to qaurter with no real need to actually print more money). If we look back at recent speeches, as much as the world saw "QE" (more paper printing etc) those speeches led to significant fall in goldprice. Or am I misreading something.

The sazme happened this time around and gold is dropping massively, so much so that SAR will soon face serious cost issues if things goldprice doesn't turn quickly.
I've always seen SAR as a company who had grown too quickly with consequential cost blowout. They have in recent months (perhaps the last 12 months) realized that that is their major problem. They have closed their Melbourne office to reduce cost. Even with this closure, they are still talking about cashcost of between 975 and 1075 in forthcoming year. Add to that an additional royalty which I'd guess is another $200 on top and that leaves with almost nothing on the bottomline. As such the SP will linger where it is. A further drop in Goldprice and this comp will drop much further.

Royalties I obviously refer to as the prescribed state royaly plus the various royalties that had been created/negotiated in favor or the earlier holders of the mining tenements.

Previous posters mentioned and I concur, unless the goldprice (IN $Aus terms, NOT the $US gold spot price, increase by $AU150 (currently it's at AU$1606 as opposed to US$1696), we won't be seeing the 70c mark in the near future. Not sure why posters continue to refer to US$ goldprice. making a big mistake when looking at a AUS producer who pay production cost in aus dollar. I MUST BE MISSING SOMETHING! Or am I?

Ant event,Bernanck did not help the cause and here's hoping for some trigger that will ignite the goldprice.
Only thing that will help now is a major discovery that could pull the cost down in a significant way.

I'll hold for another 6 months and have anotrher look.

Best of luck.

IMHO