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Message: Some thoughts

Some thoughts

posted on Sep 25, 2009 09:59AM

The attitude that was portrayed by management at the AGM has had me thinking.

Since we are financed up at 40 mil and apparently cash flow positive by the end of this 1/4 and in no need of additional financing why would management be concerned about the SP or for that matter care about the SH.

No need for further financing. Don't need a high SP to reduce dilution. Not that, that mattered in the past.

Cash flow positive means that salaries will be paid and possibly raises all around. At the AGM a person in Dale's position warrants a salary in the 5 million range per year. Not my comments, brought up by a fellow SH and confirmed by Dale.The short fall is being made up with granting options.

A low SP would actually benefit management and all involved to allow them to exercise their options with lower capital gains. I think I got that right.

According to IR,Dale has showed tremendous leadership by sacrificying 500,000 shares to somebody else who really,really wanted them. If this guy is so important to the company and not to an investment house or someones pocket book why not bring him on board by directly selling him shares from SGR? Remember way back when a huge deal was made when Sprott bought just over 1 million shares.

Remember Robert Cohen has had a $3 price tag(at least, and that was a few years ago) on SGR way before SGR's future was swinging on the Hinge. So why with all the hard work that the boys at SGR are doing are we stuck here. And I am being sincere when I say hard work.

And the 43-101 has been delayed, I don't care how Dale wants to spin it. We were waiting for the entire mine 43-101, two AGMs ago. But , the hinge was found. So, it was delayed to incorporate the hinge results. If we had the results for a 43-101 to be released minus the hinge why not release them and get us on the TSX? We have been told that they will be released seperately anyway. And more than a few people here seem to think that 43-101s are irrelevant. Ex. that G doesn't release them at all. So release a 43-101, get us on the TSX and be done with it. I think that if this was a priority for the company we could have been on the TSX long ago. The longer they wait to release the 43-101 the greater chance that the market finds it to be disappointing. "You've been pumping this for so long and this is it?" Again, just speculating.

Surely, with 40 million in the bank we could afford to hire more seasoned geologists to process the cores from all the drilling that has been happening. If I understand correctly that's where the back log is.

And yes the entire market is down, and the POG is down, and and and. Even if the market was up some of these questions begged to be answered

Just thinking out loud with too much time on my hands. Would appreciate any other thoughts for and against.

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