I have wondered how many shares SFMI could repurchase using the 15% of profits this yr.(pierre's figure) , and what the cost might be. The calculations following are to give some general idea of the possible in buyback shares and mill output.

If SFMI wanted to purchase buyback shares each day, it could buy a maximum of 326,600 shares/d. under SEC rules.

If SFMI purchased 25% (a conservative figure ?)of it's allowed daily max. no. of shares under SEC 10b-18 rules, it would buyback 81,600 shares/d, or 408,000 shares /wk., or 9.8 mil. shares/yr. (bought from July 5- Dec. 17, 2010).

For example, assume the vol./d remains around the present 1.3 mil./d, and the price goes from the present $.07/s in a straight line to $.50/s on Dec. 17, 2010. The cost of shares in this time would average $.215/share for 9.8 mil. shares, or $2.107 mil.

Can SFMI produce enough revenue to allot $2.107 mil. to repurchase stock in the next 10 months?

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Cash proj. to Dec. 31, 2010 for mill prod. and profits based on 1 shift/day@ 5 d/wk. , and going from 30t/d to 400t/d., with the mill starting prod. wk. of April 26 to Dec. 30, 2010.

4 wks @ 30t/d = 600 t. ore milled.

11 wks @ 100 t/d = 5,500 t. ore milled.

21 wks @ 400 t/d = 42,000 t. ore milled.

April - Dec. total ore milled = 48,100 t.

48,100 t @ 10 g. Au/t = 15,466 oz. Au @ $1150./oz = $17,786,000/y cash sales.

48,000 t @ 100 g Ag/t = 154,466 oz. Ag @ $17.50/oz. = $2,706,000./y cash sales.

Yr. total cash sales for Au and AG = $20, 492,000.

Cost of production- Est. $150./oz Au = $2,320,000. from cash sales = $18,172,000.

GoldCorp rent/y = $1.1 mil. leaves $17,052,000.

GoldCorp 15% royalty = $2,557,800 leaves $14,494,000. as profits (before taxes)

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Now we get to the Pierre breakdown of profits. 15% of profits are to be used to buyback shares of SFMI. 15% of $14,494,000. is $2,174,130.

After deducting 15% for buyback, there is still enough profit left to pay back portions of outstanding gold and noteholders each month.

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Can SFMI buyback a large enough number of shares in 1 yr. to raise the sp? It certainly appears so. Can SFMI produce enough revenue after paying it's bills and creditors using a conservative 10 g.Au/t and 100 g AG/t ore? It appears so. The buying of 9.8 mil. shares by the end of the yr. would certainly drive the sp up. Anyone who knows what average % companies are usually able to buyback/d please let us know. IR was emphatic that Pierre plans to use 15% of money left (after paying COP, rent, and royalty fees) as buyback money. Comments welcome.