Thx for sharing. Greetings to all SGR veterans from a new SGR fan attracted by the SGR '007' news.

I like the 2nd model, P/E model in your post. It is fair and conservative to assume P/E 10, so 10 times next 3 yr average net profit is the market cap. Using your 2010-2012 data, I got the stock price=5.12, so the current price $4 is kind of fair, leaving not much room for quick/easy bucks.

Got 2 questions for everyone's helpful comments:

1. I assume the 2010-2012 production projection doesn't include the latest (2009/11) findings of 007 hole, L03 zone, etc. Those findings should add more possible output to production from Q3 of 2012, assuming SGR need 1.5 years to finish the exploration, shaft extension for those new deposits ?

2. I noticed there is a long term royalty obligation in latest SGR qtrly report. What are details of that, and how much will that reduce the net profit of San Gold in our simplified model (POG - $350/once) times (total onces of produced gold) ?

Thx in advance

goldfisher