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SAU - SOUTHERN GOLD LIMITED


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Hi all,

 

too hungover to fully outline my detailed views.

 

Basically, yes we know SAU does not have a lot of cash.

 

Are we surprised though? For a market-cap of $7M which includes 39% of SNU, what did we expect more than a few pennies in the piggy bank?

 

Plenty of opinion it seems but not a lot of analysis.

 

Did anyone read the AR? Hartley's appointed to raise funds. SAU divesting non-core assets.

 

SAU could very extract a lot of value from the GEL's by introducing a jv-partner such as TATA.

 

I'm not to worried, but on the same note do not hold very many.

 

 

With regards to exploration, much of SAU's expenditure has been funded by farminees. SAU has utilised each dollar raised much more efficiently than any other junior imo.

 

 

Just relax, enjoy the sunday arvo all. All pessimism has already been factored into the SP imo.

 

 

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In reply to: King Baz on Sunday 02/11/08 04:12pm

KB, as recently as 24/9, you said:

 

King Baz

 

Posted Wednesday 24/09/08 01:16am

Report Post Quote Post

 

 

 

Regular Member

9019 posts

Joined Apr 05

124 Thanks

 

had to keep raising the bid to get barely a crumb the whole day (l bought all of todays volume - again).

 

A case of risk/reward from here. It doesn't take much for sentiment to change biggrin.gif

 

 

--------------------

 

 

 

Regards,

 

KB

 

As a long time promoter/poster of this stock you now say you hold very little, seemingly selling sometime b/w 24/9 and now.

 

I have read the annual report, and the quarterly results, and provided my analysis.

 

Some holders here are no doubt awaiting your analysis, and reasons for selling, when you

have recovered, that is.

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In reply to: jons on Sunday 02/11/08 04:37pm

QUOTE
Some holders here are no doubt awaiting your analysis, and reasons for selling, when you have recovered, that is.

 

KB has apparently been buying a lot of NWE recently. Probably thinks it represents a better short-term risk/reward senario than SAU (and I agree). That doesn't mean SAU won't do well over the next 18 months. But your funding point is a valid one.

 

Regards,

Ice

 

 

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In reply to: jons on Sunday 02/11/08 04:37pm

jons - l trade through a number of trusts and SMSF's and have the ability to be able to move positions between 'related' entities readily. I often buy and sell positions outside of the market, and bag myself the spread when dealing for an associate.

 

Nevermind what l do. We are talking about SAU's cash position, and yes we have reason to be questioning the ability of SAU to operate as a going concern and we all have our opinions on that.

 

The reason l ask about reading the AR is because Greg specifically names all his field managers and it does seem as business as usual, whereas you seem to think they have hung up the boots. You sure you haven't caught the wrong end of the stick? Maybe a contractor has been terminated?

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Found this article in The Australian - business section...released prior to the AR

http://www.theaustralian.news.com.au/busin...2-15023,00.html

 

 

 

October 13, 2008

 

SOUTHERN Gold is said to be undervalued and is being listed as a "speculative buy" by Hartleys.

 

Southern Gold - a geographically diverse explorer with a suite of projects primarily focusing on gold and base metals - has a large, highly prospective ground holding in Cambodia.

 

Though exploration is still at a relatively early stage, the Japan Oil, Gas and Metals National Corp (JOGMEC) has entered into an earn-in joint venture with SAU and is contributing $4.5 million to earn 51 per cent of three of SAU's seven licences in the country.

 

Removing cash and its $2.3 million investment in SNU, Southern Gold has an enterprise value of around $9 million.

 

The $4.5 million expenditure by JOGMEC implies a value of $4.3 million for SAU's share of the three Cambodian joint venture tenements.

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Given this, we believe that Southern Gold is significantly undervalued, particularly considering the exploration potential of its projects,ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ Hartleys said in a note to clients.

Its Challenger Area project covers around 5000sqkm.

 

Four tenements are held 100 per cent by SAU, and eight are in a joint venture with Dominion Mining, where Southern Gold can earn up to an 80 per cent interest.

 

Encouraging results to date (including 12m at 7.6g/t gold) on a number of prospects indicate excellent potential for another Challenger style deposit, the most advanced of which is the Golf Bore prospect.

 

The company will also have a number of drilling programs in the near future, as well as a Golf Bore resource in early 2009, leading to a strong news flow over the coming months.

 

Southern Gold Ltd (SAU), Hartleys, Speculative buy, No price target, Last traded at 7c

 

 

 

 

n.b.

Am concerned at reading in the online Annual Report about directors increasing their annual salaries since previous year despite the prevailing economic down turn, and tight cash position of the company

 

 

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jons, what are you somoking mate?

 

What, you want SAU to announce that they have sacked everybody in the company? http://www.sharescene.com/html/emoticons/wacko.gif

 

Just relax tiger.

 

You seem to be getting stressed, obviously you have an emotional connection to a former employee or something of the like.

 

What is your problem?

 

Just take a deep breath mate.

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QUOTE (jons @ Monday 03/11/08 01:15pm)

 

A close source contacted Southern Gold's Adelaide office earlier today.

During the telephone conversation, the company receptionist stated that she was not aware of any Southern Gold staff being retrenched, or rumours to that effect.

 

Instead, she indicated that some Southern Gold personnel were possibly about to be utilised in projects at Southern Uranium's arm of operations. Perhaps this may clarify things.

 

Also concerns about increases in directors' salaries were both welcomed and noted and will be forwarded on to directors.

 

Regarding any other matters, I suggest you telephone their Adelaide office.

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