careful, page-42

Would it make more sense that taking over Sons of Gwalia mines and formulating a strategy to convert that reserve into gold for subsequent sale, together with the newly purchased SOG tenements have contributed to the share price valuation.

The problem with SBM is their dog minded approach to gold mining with contining exploration and expansion projects. Rather then attempt to build a first class gold mine within a tight time frame, management are creating perception that they are getting all the preliminary work done on a timely basis in order to continue to maintain consistent gold reserves into the future.

The problem with this strategy is there are huge budgets to allocate funds to that the company does not have and so they go on to raise funds by any means at there disposal,all the while believing their way is the most fundamentally rational and logical approach to resolving the problem.

Seems to me if they are spending money in excess of there operation, not turning a profit in light of their current gold production you have a case of some leaders who need to establish skills in money management, time and cash flow planning, significantly reduce their production costs and significantly reasess their priorities in exploration. In other words pull the bloody ore out of the ground, convert it to gold and use the profits generation from this whilst reducing your operating costs to contribute towards a prioritisation in exploration projects.
Are there any execs with MBA qualifications on the board, it certainly sounds like they need one.

This company is not in good shape and unfortunately the blame needs to be directed towards the management - who are afterall in 'control' of the company. They are the 'inteligence' behind the strategic plan and the implementaion of the plan.

It's not whats done in extracting gold from a gold operation it's "how it is done" and there needs to be some far better strategic plans implemented by this company by an efficiency expert. At the moment it is running as a 'white elephant'.

I go out at 35c after realising executives strategic plan, and if you look at the history of the company I'm not sure that they are aware at how to run this business above 40c/share.

Like I said this company needs an efficiency expert in the helm to move this business into a potential profitable gold miner. It has the potential it just doesn't have the motivation.

Sorry to have to state the obvious fellows, but if execs consider they deserve to be reimbursed according to their perceived high level commesurate to a senior exec, then they also need to be held accountable for not performing to the level expected from these people and this needs to be factored into readjusting their reward accordingly, (to reflect the poor performance).