Late July, last year, had SAU SP on a bit of a tear upwards into...

Late July, last year, had SAU SP on a bit of a tear upwards into the mid 40s, briefly. Well what happened? In retrospect three major things occurred, IMO;

Firstly the Cannon July 22 announcement disappointed the market. It rightly excited the Geologists, and since then have been proven correct in their guess that Cannon style mineralisation was deep (just not exactly where they thought it was). However, the market's reaction, including mine, was disappointment it's fair to say.

Secondly, and shortly thereafter, some hefty offers were placed in the high 40s. A double top occurred at 45 cents and then SAU proceeded to go south. It turns out to be a big seller, a former MD wanted out.

Lastly and not least - in fact, the biggest reason SAU SP tanked IMO, was that it timed it's decline, as the general Gold Mining indices turned downwards. The big seller and Cannon results didn't help matters, however, with the HUI, CAU, GDX and GDXJ all all turning downwards about August 2016, after their amazing 2-3fold bounces of the December 2015 bottoms, was the major catalyst.

SAU's performance at times has been a little worse than these indices, however, quite similar in terms of a 50 DMA. In other words, without stellar news, SAU was always destined to go down to long term support levels in the mid 20s. Almost halving it's SP in terms of spikes on the daily charts, however, not a very big drop in terms of medium term moving averages (actually fairly well in line with the gold mining indices).

Maybe you're asking yourselves " why this history lesson Dingo?". Well I reckon we might have a reverse situation happening here in September 2017 vis a vis from where we were at in July/August 2016.

Firstly SAU pleased the market participants with great Cannon results(despite a fairly tepid SP reaction). Secondly, the USD POG has been breaking key resistance levels and seems to be gaining momentum. The gold mining shares look set to start breaking out and "play some catch up" if this POG increase continues. All we need now is a big buyer to complete the mirror image trifecta.

The re-rate, that I thought might happen this week didn't materialise. This market seems to not like dishing out instant gratification to shareholders atm. It's going to be a busy end of year for news flow and if synchronised with surging GDXs etc, adding more good news to Cannon's should see some nice SP action finally. Here's hoping anyway!!!