Extraordinary interest in the stock of Sagebrush Gold Ltd (OTC:SAGE) for the last two market sessions, at least in terms of volume. This is the first thing that comes to mind after looking at the charts.
Yesterday, SAGE stock shifted more than 480 thousand shares, soaring by 5.2% to its mid-October level of $0.60 per share. Moreover, a six-month record of 1.2 million shares changed hands on Wednesday, following the official announcement that the company had contracted a second drill rig at the Nevada-based Relief Canyon Mine Project. Strangely enough, investors did not seem to care much about the debt reduction update which popped up on Nov. 1.
Sagebrush Gold Ltd describes itself as a recently established gold exploration company focused on exploring high-potential gold properties in the state of Nevada. The company’s primary asset is the above mentioned Relief Canyon Gold Project which used to produce gold in the past.
Financialwise, SAGE has kept an open-door policy to its stockholders. As seen in the latest 10-Q, which covers the second calendar quarter of 2011, the company’s balance sheet contains:
- cash reserves in excess of $1.86 million;
- net worth of $5 million;
- quarterly net loss of more than $2.5 million.
On Nov.1, SAGE announced that it had paid in advance almost half of its $1.7 million loan. The results from the current exploration of Relief Canyon will determine the direction in which SAGE stock will be trading in the months to come.
