I noticed Scorpio Gold Corp. (SGN.V / SRCRF) is currently priced below a buck even though it has property in production. What's up with that? The CEO and president are both geologists and the other directors all have mining backgrounds, so the company isn't suffering from lack of experience. The company had losses in the first part of 2013 but earnings turned positive in Q3 2013, according to their quarterly report dated September 30. If this company had truly turned a corner, the share price would have responded positively since the date of that report. The stock is still near its 52-week low.
Mineral Ridge is in production but just look at the grades . . . 0.062oz/ton at the main pits with only a three year mine life. The satellite deposits' grade average grade of 0.078 oz/ton isn't much better. Goldwedge is not yet in production and awaits a 43-101 estimate. Pinon also awaits further development.
I'm not a gambler. Betting on management isn't a sufficient justification for me to put my money into a low-grade, short-life producing property with only the possibility of expansion at other properties. Scorpio will have to significantly extend that mine life and discover higher grades if it wants to be in my portfolio.
Full disclosure: No position in Scorpio Gold, ever.
Mineral Ridge is in production but just look at the grades . . . 0.062oz/ton at the main pits with only a three year mine life. The satellite deposits' grade average grade of 0.078 oz/ton isn't much better. Goldwedge is not yet in production and awaits a 43-101 estimate. Pinon also awaits further development.
I'm not a gambler. Betting on management isn't a sufficient justification for me to put my money into a low-grade, short-life producing property with only the possibility of expansion at other properties. Scorpio will have to significantly extend that mine life and discover higher grades if it wants to be in my portfolio.
Full disclosure: No position in Scorpio Gold, ever.
