Whatsup - exactly why I penned my final sentence above - "if you believe in precious metals and value the experience of the SXG team".
AUD gold and silver prices have actually risen this month - gold from $1285 at the beginning of the month to last night's close of $1307; silver from $20.70 to $21. Small rises, but rises nevertheless.
If you think the gold price falling below AUD$1300 remains a potential deal breaker for Trailstone, there is only one day to go to sign off day; after that, it's game on.
I agree that a major risk is whether the issues CCU had with the resource and the processing can be rectified by the SXG team. Trying to be objective about it, their track record at Polymetals in building profitable gold and silver mines indicates they have the experience to pull it off.
This aside, Mt Boppy and Marda gold projects were the original reason for Trailstone's involvement. Wonawinta simply enhances the financials of Mt Boppy by reducing capital costs and it will be a bonus if it also adds early cashflow, as forecast.
Apart from moves in the prices of gold and silver, the share price drivers will revolve around continued derisking of the company, including (a) close of the Wonawinta transaction - due tomorrow; (b) final capital raising figure exceeding $2 mill - within 30 days - confirming the extent of support from Directors, management, and professional investors; (c) positive action on the ground leading to silver production in December.
It would also be helpful to see some financial forecasts from the company to provide clarity and added confidence to the market.
SXG Price at posting:
1.0¢ Sentiment: Buy Disclosure: Held
