The story link that you posted has nothing to do with grade.
For every seller there is a buyer.
remember when the crash of 2008 sent prices into a tumble, there was blood in the streets.
the ones who gained were not the ones who sold, unless you sold the day before the drop.
I bought when the price was low, but I already owned many of the stocks that i bought.
The reason that grade is so important, and even 1 gram of head grade can make a diference, is that at some point, SGR must reduce its cash burn to 0. The closer they get, the less cash they will burn, the longer they can go without financing.
See Hotmuck's post on head grade and how what a 1 gram change can do for the cash position of the company.
So the real question is can they do it? Can they bring the costs down to help themselves meet that threshold?
All I can say is that I am buying at these prices, with the objective that I am going to take profit in steps. I have already done this once and made out pretty good, and I am reasonably confident that I am going to do this again.
