It's clear that when SGR first put out the feelers about financing that the players determined the conditions to make themselves the maximum profit possible. And so the campaign began to crush the share price and make the 50cent conversion price on the debenture viable. That's how the money players make their money. But you have to blame management for not husbanding our cash spending well enough and putting us at the mercy of the sharks.

The current share price is another example of how the market can carry things to a hysterical, irrational extreme to the point of utter absurdity. Here you have a company with x amount of resources with much more to come as the vein systems have only begun to be explored, a substantially built up infrastructure, on a paved road, access to unlimitted water and all the reasonably priced power they need, and in a safe jurisdiction.

They could today scale back mine development to a more measured pace, scale back to a much more limited exploration program and mine 80 thousand ounces a year, increasing gradually to 100 and then 120 thousand ounces a year as mine development progresses and be cash flow positive from the get-go and do this for the next fifty years. I'm not saying they should, just providing some perspective.

What's frustrating about the market hysterics is that there are now companies out there with less resources in remote locations with all of their permiting issues and development costs ahead of them and that may never be mines with market caps approaching SGR.

Efficient markets my a--

It wasn't that long ago that this company was sitting on a good pile of cash. I have often felt queasey that they were cavalier in the way they were spending that cash on picking up various non-core property interests and extravagant drilling programs-all of which the market gives them no value for. However I rationalized that management had a handle on the mine development needs and production and cost and cash-flow realities and were making the spending decisions in that context.

Maybe they thought that gold would be at $2500 by now or didn't anticipate the steepness of the share decline and were casually and confidently anticipating doing a flow-through financing at higher prices.

At any rate, it's clear they didn't husband our cash pile well and that I overestimated the acumen and rationality of our management team. And now we are in a pickle.

I place lsg a long way behind sgr. Not only do they have substantially more shares outstanding but a good part of their gold production is spoken for--some to franco nevada in a streaming deal and some to sprott in repayment for debt. I don't own any lsg so I can't remember the exact details.

A few days ago I put in an order for 14,000 more shares at .84 cents. It too was filled in chunks of hundreds of shares at prices of 83.9--83.8--83.7 It looks to me like computer generated actions getting in front of the bid and each other. Probably flipped it back on the other side at 83.1--83.2 to buy back in front of the .83 offer. It looks to me that the high frequency dudes are having a good go at sgr.