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Message: Re: Drilling in 2009
2
Nov 10, 2009 05:05PM
2
Nov 10, 2009 06:32PM

I think a lot will depend on our finances to date. If I recall correctly we still had 20 mil. in the kitty. How close are we to cash flow positive on a consistent basis? I guess we will know by this Friday. Guidance from the company!!!!"Just" cash flow positive won't cut it though as it will not fund further exploration/mine development. Saying that if we still have enough cash from our previous financing at 10 million a year we may be able to explore for 2 years with cash on hand IF we are cash flow positive from now on. Previous budgets were around 8 million/year and apparently the bulk sample/decline ramp has been a breakeven proposition. I am unfamiliar as to the cost of further ramp development and getting mine faces ready for production. So we may be chasing our tails here for a bit as any cash flow will be eaten up by further mine production. All depends on how quickly we start producing gold from all lenses.

Maybe IR should phone the lady in Pine Falls who just won the 50 million on lotto max if $$$$ are still a concern. Could hit her house with a well punted football and a strong wind.

I do not know exactly how the tax credit scheme works but if SGR starts using them for production profit offsets how will that affect the people who are using them to reduce taxable income on their capital gains?

As nice as I can be.

Loooooooooooooooong SGR

1
Nov 10, 2009 07:06PM
1
Nov 10, 2009 08:03PM
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