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San Gold (SGR.TO)

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  • May 29th, 2013 12:37 pm
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Dec 21, 2005
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San Gold (SGR.TO)

Anyone with a position in this?

Saw this on the TSX % decliners list almost everyday this week & last week...looks like it went off a cliff after announcing 2013 guidance.
Can't believe this was $1.50-$2 for most of 2012 and now $0.40
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a) I have a friend who has 100,000 shares. Obviously he's in a world of pain right now.

b) I went to school with one of their former executives who left under fairly abrupt circumstances. Really wondering why, I should call him up for a beer sometime.

The assets of this company aren't particularly great, and management decided to burn capital on a bunch of exploration stuff instead of sticking to their original mandate of developing their original mining project and achieving cashflow from such.

The company is probably undervalued at this point. But not dramatically so. Last time I looked at it, with gold in the $850-$900 range, I could only compute a PV of around $0.8-$0.9 at what was a discount rate I felt reasonable. The stock was trading at double that at the time. The run-up to $3-$4 was completely irrational compared to the rest of the industry. And many of their financing deals were, for lack of better words, quite dilutive.
TodayHello wrote: ↑...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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coachpotatoarmchairQB wrote: ↑What price did they buy it at?
Between $1 and $2. 5-6 years ago. I don't know why he got hooked on it.
Why put so much onto this company was it a winner?
I never saw anything redeeming about the company. Basically a junior miner at a valuation, at the time, that only a senior should have been commanding. And then management became a bunch of turds by going on an exploration binge and buying properties not even related to their production or current assets.

Not a fan personally. Buy the GDXJ or something if you want exposure to juniors.
TodayHello wrote: ↑...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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Seems like the whole Canadian junior gold sector is being hammered; names like LSG & RMX are back to 52wk lows

Lakeshore Gold had a senior buy-in at much higher prices (Franco Nevada)...same for Rubicon (although I think Agnico-Eagle ended up selling its shares)


News is out: $50 mil convertible debenture financing; 8% interest; convertible at $0.50 into common shares
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Jan 23, 2010
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what does that 50$ mil convertible debenture mean ?... I purchased today with 0.395 for 1000 stocks should i wait that this company will ever go back ?
charliebrown wrote: ↑Seems like the whole Canadian junior gold sector is being hammered; names like LSG & RMX are back to 52wk lows

Lakeshore Gold had a senior buy-in at much higher prices (Franco Nevada)...same for Rubicon (although I think Agnico-Eagle ended up selling its shares)


News is out: $50 mil convertible debenture financing; 8% interest; convertible at $0.50 into common shares
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a4wagon wrote: ↑what does that 50$ mil convertible debenture mean ?... I purchased today with 0.395 for 1000 stocks should i wait that this company will ever go back ?
Basically it means if the stock price goes up, the bondholders can convert into equity and take advantage of the increase. If the price goes down, they still get 8%, and may get the chance to convert their debt into ownership of the company if there is a default. Such a financing arrangement means the company is under an extreme amount of stress. This isn't the sort of financing that a company that isn't in distress takes. Hence, the drop in the stock is very likely highly justified.
TodayHello wrote: ↑...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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Jan 31, 2013
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IMG keep losing value since Mali crisis and Kinross reported a 3 billion write down... if this pattern continue to grow, would the gold price go up?

is it best to buy physical gold than investing in gold corps
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Aug 25, 2010
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charliebrown wrote: ↑
News is out: $50 mil convertible debenture financing; 8% interest; convertible at $0.50 into common shares
It's in the "New Issue Offerings" on Scotia iTrade:
San Gold Corporation Convertible Debentures Open

Issuer: San Gold Corporation Convertible Debentures

Issue: Convertible Unsecured Subordinated Debentures

Minimum Order: 1000

Price: 100.0

Sizing: 50000000

Closing Date: Mar 6 2013

You'd be better off spending 100 grand on hookers and blow. ;)
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JustBob wrote: ↑It's in the "New Issue Offerings" on Scotia iTrade:




You'd be better off spending 100 grand on hookers and blow. ;)
The minimum order isnt 1000 x $100
Instead, it's $1,000 ie 1x$1,000 debenture priced at 100%

The convertible debentures are priced as if each had a $100 value, but you are actually paying 100% of the $1000 face value.
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Aug 25, 2010
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Oops, correct. It even says $1,000 underneath in the next bit (not shown here). Still not worth it.
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JustBob wrote: ↑It's in the "New Issue Offerings" on Scotia iTrade:
Lol, if its being peddled to retail investors, then that's very bad.
TodayHello wrote: ↑...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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Jan 23, 2010
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probably long term if this company doesnt go bankrupt will be time to buy now.
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Mark77 wrote: ↑Lol, if its being peddled to retail investors, then that's very bad.
Hmm...whenever Scotia or TD are bookrunners new shares/IPO, i get emails about the deal. Not sure if there are actually any to subscribe to due to demand/supply
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charliebrown wrote: ↑Hmm...whenever Scotia or TD are bookrunners new shares/IPO, i get emails about the deal. Not sure if there are actually any to subscribe to due to demand/supply

Yeah well this would've been a bought deal if there was anything good about the company. 6 years ago when I first started looking at the company, they seemed to have a fairly good concept. Re-incarnate an old gold mine in Manitoba, put some natives to work, and bring gold out of the ground in a relatively secure fashion using legacy infrastructure.

Then they started behaving badly as juniors often do, losing operational focus.
TodayHello wrote: ↑...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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Aug 25, 2010
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charliebrown wrote: ↑Hmm...whenever Scotia or TD are bookrunners new shares/IPO, i get emails about the deal. Not sure if there are actually any to subscribe to due to demand/supply

I check them out occasionally. I'm amazed at the number of apparently new funds/trusts and other such investment vehicles that pop up on a regular basis. So far, I've only subscribed to two offerings, Dundee International REIT (DI.UN-T) and Enbridge preferred (ENB.PR.T-T). In the first case I got half the shares I asked for in the ROI, in the second case I got all of them, so yeah, it's based on supply and demand and you don't know how many shares you will get.
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Jan 23, 2010
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do you guys have faith in this company... are you buying, selling or holding these stocks
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a4wagon wrote: ↑do you guys have faith in this company... are you buying, selling or holding these stocks
I suspect if management did a press release and told everyone that they were abandoning their exploration plans, that the stock would be well over 50 cents in fairly short order. They are a gold producer. The stock is cheap if you value it just based on the gold production they already have, and their existing reserves. The problem seems to be management's insistence that they waste shareholder value on "other" stuff.

However, the question, at least in my mind, given their track record, is how much of the company will management essentially 'steal' during this stock downturn by writing themselves new options?
TodayHello wrote: ↑...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...
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Dec 21, 2005
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Any ideas why this jumped 100% in less than a wk? (albeit from a historic low of $0.12 to $0.26)
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charliebrown wrote: ↑Any ideas why this jumped 100% in less than a wk? (albeit from a historic low of $0.12 to $0.26)
You pretty much answered your question -- as horrible as the management has been, there are assets and production here, and should be some value.
TodayHello wrote: ↑...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...

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