A lot of investors and wider audience will observe under the magnifying glass the stock of Scotgold Resources Limited (ASX:SGZ), (LON:SGZ) these days as a promised major for the company event is coming. On these future developments will depend whether the share price of Scotgold Resources Limited (ASX:SGZ), (LON:SGZ) will remain pink on the radar.
In its investor presentation form February 25, 2016 the company announced that during next month is expected to commence gold production from the so called Bulk Processing Trial (“BPT”). According to Scotgold, “Approx. 2,400t of stockpiled material at an estimated grade of 7.9g/t Au and 39g/t Ag is to be treated over 6-month period”. Although SGZ mentioned that this act is a subject to granting of planning permission, as of today, there is no an official company’s statement that there are any administrative barriers or other negative occurrences.
Today, SGZ closed the Australian market at 0.013 AUD with green expectations and no change in the share price to open the trading session at 0.680 GBX on the trading floor of AIM. Figures of the weak trading volumes on two markets suggest that investors’ interest towards SGZ is yet to be awaken.
On the Australian Securities Exchange, the 52 weeks’ trading range of SGZ is within the range of 0.00 – 0.02 AUD. Based on this numbers it is not hard to guess that the share price performance of Scotgold Resources Limited is the same as this of a typical, cheap and high risky pink sheet. From the point of view of pink sheets experts, the performance of a pink stock is hard to predict.
There is an interesting coincidence when analyses are done about the stock of Scotgold Resources. According to the terminology for weather radars, the pink colour on these radars is used to locate areas with freezing rain or sleet or mixture of winter snow and rain types. As seen on the chart of SGZ performance “high amplitudes” of the share price are rather rule than exception. One may say that this is a standard chart for a non-producing starting company in the branch. Yes, it is truth. This analogy is not done to inspire negative attitude towards Scotgold Resources Limited. It is rather made to stress investors’ attention on the fact, that investing in SGZ is related to a very high risk.
In the future, in the category “Good to know about” will be published more information about the company and its stock.
Scotgold Resources Limited is an Australia-based mineral exploration company with main projects based in Scotland. The company plans to explore and mine gold and silver within Central Scotland. Company’s Cononish gold and silver project is located in the Grampian Highlands of Scotland. The project is permitted by Loch Lomond & the TrossachsNational Park Planning Authority for operations and full scale development. Company’s shares are listed on two markets- the Australian Securities Exchange (ASX) and AIM board of the London Stock Exchange. The home exchange for SGZ is ASX Perth, Western Australia.