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Kwantes calls Sabina's shares "dead money"

2016-07-12 20:35 ET - In the News

James Kwantes, in the June 21, 2016, edition of Resource Opportunities, says the shares of Sabina Gold & Silver Corp., recently $1.06, are "dead money." For portfolio purposes, we will take this as a sell recommendation. Mr. Kwantes said buy on May 18, 2015, at 39 cents and on Dec. 30, 2015, at 74 cents. Assuming a $1,000 investment for each of the two buys, selling the $2,000 position at $1.06 would yield a profit of $2,119. Sabina was dealt a major setback on June 16, when the Nunavut Impact Review Board (NIRB), citing concerns about caribou and climate change, declined to support the company's Back River gold project. The NIRB recommended to the Minister of Indigenous and Northern Affairs that the project not proceed. Sabina's stock promptly plunged to $1.13 from $1.73 and has since edged down even further. Given that the company spent over four years studying Back River and submitted an environmental report running approximately 15,000 pages, its president and CEO, Bruce McLeod, was "very surprised and disappointed," he said. He indicated during a conference call that the best-case scenario for Back River is a one-year delay. Mr. Kwantes concludes that Sabina's shares are "dead money, for now." (Note: This notice was originally classified as a "comment" on Sabina, but has since been reclassified as a "sell," based on updated information.)

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