SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF)
Shares of SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF) shed 17.81% as investors reacted to a wider than expected second quarter net loss. The precious metal company says it generated a net loss of (-$0.6) million for the three months ended June 30, 2016, compared to a net income of $0.2 million for the corresponding period last year.
Net loss for the first six months of the year came in at ($2) million compared to a net loss of ($0.4) million for the corresponding period last year.
SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF) has been on an impressive run having rallied from lows of $0.70 a share as of the start of the year to highs of $1.90 a share this month. Tuesday sell off threatens to bring to an end the bullish run that has seen the stock trade in a tight $1.45-$1.77 a share trading range. The stock should find immediate support at the $1.34 mark below which it could tank to $1.16 a share.
The precious metal company engages in the business of acquiring, exploring and development of mineral resources across Canada. The company owns 100% interest in the Back River Gold Project located in Southwestern Nunavut Canada as well as the silver royalty on the Hackett River.
SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF) attributes the wider than expected second quarter net loss to lower sales of Pure Gold Mining Inc. this year compared to last year. The company ended the second quarter with cash and cash equivalent of $36.6 million.
Despite the massive loss the company’s chief executive officer, Bruce McLeod says they achieved a lot as they continued to advance the Back River project through basic engineering and optimization studies.
During the quarter, the company completed its first phase exploration drilling program at the Goose property.
“In addition, the exploration success we had at the Goose Project this spring has provided opportunities to extend the mine life of the project. In particular, grades at the Vault Zone are more than double the average grade of the Back River resource and could offer opportunities to positively impact Project economics,” said Mr. McLeod.
Following the successful first phase exploration program, SABINA GOLD&SILVER COM NPV (OTCMKTS:SGSVF) intends to expand its summer drilling program, focus this time being on the Vault zone.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.