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Message: SFMI share buyback and profits

I had a conversation with RK regarding the production, and came to the following conclusions regarding production for the balance of 2010. The rest of April and much of May will be fine tuning the mill production, using low grade tailngs/ore. So, dont expect much in the way of production. Production will be sent once a month to the smelter, and this will produce dore bars. A raw mixture ofall the metal, gold/silver/base metal.

Then the company will have 2 choices; sell the dore for whatever they can get for it, or send it to a refiner, maybe the same as the smelter or another company which will separate the metals. This will take us into June or July before there is a significant quantity to sell. If you look at the production and sales schedule of other producers, they commonly hold back inventory for a month. Along with shipping the raw production of December until January, we are looking at perhaps 6 months of dore bar production, and if they decide to refine, maybe less. I wouldn't look for significant profits or share buyback this year, as there will probably be normal delays and fine tuning any startup mine has to go through.

Lets not get ahead of ourselves and give the real bashers any ammunition. Low expectations may allow for upside surprises. There have already been too many delays whith this company which have caused disapointment among potential investors, and shareholders. Reading the 10K, I was reminded that the plan was for the purchase and assembly of the mill to be completed in Dcember, and for production to start the same month.

Sinbob, I hope that you don't find my comments too critical. Just trying to tell the truth.

iggy

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