Day traders are selling into pending news as it is expected that Q2 will likely have similar financial data as the last Q1 which was not well received by many. My expectation for the Q2 report is to confirm:
**Dredges have been delivered and exploration of said dredges has commenced
**Process adjustments have been made to improve throughput.
**Additional dredges have been put on hold in favor of selecting processing equipment.
I don't think we will see yield numbers yet. April-May-June was when all three dredges were delivered, tested and employed. They also had modified the dredges in June for stability and higher BS throughput. In July, they purchased processing equipment, so, we expect that in the Q3 report. We also expect the BS stockpile estimates to be pushed into the Q3 report. Given this perspective, I don't think the report itself will cause the pps to push upward. I think the realization that they are 1 Q away from uplist will impact the share price. However, that will not start gelling until 1 week after the Q2 report is released. Also, SNEY is fighting a perception (self imposed, of course) that they are a bit unreliable in delivering financial reports. Yes, you and I and the rest of the longs here believe in them, but, the greater investment community is now in a "show me" frame of mind. That will be to their detriment for the cheapies, but, I think they will jump on board when we uplist, and are passing through the pennies on our way up.
How high will this go? Not really sure. Lot of positive influences though:
**Iran will be using gold as primary monetary unit as the rest of the world boycotts them. This gets even worse with a military event.
**Gold will continue to rise as Europe, US and Japan struggle with their currency continuing to decline in the face of growing debt and dilution of currency.
**Junior Minors are starting to get traction in the greater investment community as the successes of near production and early production minors becomes known through the mainstream.
**Oil will sky rocket creating an oil bubble that will scare investors toward gold producers.
Negative influences are there too:
**SNEY has over 1.5B shares outstanding which could grow depending on the state of the warrants.
**Instability in the region could sour the relationship with the government if production delays are perceived. Low probability on this one IMO
**Lots of restricted shares will the market this summer flooding the float pardon the pun, folks. This will create ownership churning. Of course, not all Restricted shares will be liquidated, but, I do expect at least 25% to hit the market by August. Sney will need to make sure the PR machine is running full tilt to keep investors informed of all the great things going on.
**Ghana is exploration stage at this point. It is not clear how much longer we have to wait to see revenue come from this claim. It has been, what, 5 years with little to no production on that claim. Investors may pull a "show me" stand off before they put value on that claim. Of course, we longs know better, right?
That of course is just my opinion. And, I truly believe that the negative risks are significantly outweighed by the positives.
