business 101, page-19

Holdonman, let's examine the cash flow statements in the past three annual reports to see if they can help paint a better picture for us.

OPERATING CASH FLOW

2010: 3.9m
2011: 59.2m
2012: 51.8m

INVESTING CASH FLOW

2010: -31.4m
2011: -65.9m
2012: -100.2m

In other words, the cumulative capital deficit over this period is > 80m.

Like most gold producers, it can be argued that SAR has chased increased production instead of enjoying the higher margins/ focusing on returns to shareholders from a soaring gold price. They should have come out and said "Hey guys, we're all about growing ounces, so forget about the SP in the short-term".

SAR isn't the only goldie suffering in the current climate. The market has had a gut full of the high-costs & management's attitude towards SHs. Check out the following article:

http://au.news.yahoo.com/thewest/a/-/breaking/16394951/costs-take-shine-off-gold-earnings/

I've resigned myself to the fact that SAR is (from this point onwards) a 2-3 year proposition. I still expect to do well from my investment - I've just had to adjust my investment time frame.

As for all the talk about dividends, pay me the dividends in G-O-L-D, please :-)

All the best,

Deme