Lunch,

I find it interesting that SGR did not issue any new FlowThru shares this December to raise funds for exploration, which has been the pattern for some time. I see three explanations, or possibly contributing factors, for that:

1. They are now generating enough cash from production and gold sales to cover both operational costs as well as exploration costs (they were very close to being at that point in their last Qtrly report, plus they had cash reserves to supplement);

2. They are now at a point where they can use their own expenses as deductions for tax purposes (as opposed to explorers who typically have now way to use the expenses as they have no income to use them against); and/or

3. The share price was so low that it was not a good time to issue new shares. (The fact that share prices were low didn't stop many other juniors from issuing FT shares anyways).

It would be nice if #1 especially was the case as the ongoing dilution has been very hard on our share price (not that it was the only factor, but it certainly didn't help).

JMHO