I am writing this in response to a couple of PM. I don't claim to have any insight into the BOD thinking, but in trying to figure out their logic, I offer the following for thought:

IMO, the RS Announcement has nothing to do with the current SP drop. We are still tracking to KWG, which doesn't have such RS plans, and they are still dropping. The current SP drop is more likely a result of the global market jitters, and the seasonality of mining shares.

Have a look at 10 year price charts. You will notice that in the start of the new calendar year, there is a spike in SP which lasts until the end of April or so, when the price settles back down to a point about 1/3 the 52-week high. Except for 2007, this has been consistant. Even 2007 follows the guidelines above, excepting for the timings. It goes like this for a number of years back as well.

I don't believe that the RS is necessary. I believe that NN and the BOD are looking too far into the future, and are ignoring (fighting?) the possibility (probablility?) of a take out in the next year or so. I think that SPQ has the necessary operating funds for the next year or more with the capital in the bank, but the BOD is looking to top it up before they run out.

I think that the RS suggestion would be better brought up in a special meeting in October, when the SP is already at a low, and then hope to build on the momentum of the rise of mining stocks. I still wouldn't like the idea much, but at least the SP would be somewhat protected, and in the general excitement around the PDAC, it might recover and perform the way that they dream it would, and the way that we want it to.

Cylinder