GREY:SGGDF - Post by User
Comment by
Tibberon Feb 26, 2010 12:18pm
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Post# 16823701
RE: RE: RE: Sage Gold - A time to move on? Yes it
RE: RE: RE: Sage Gold - A time to move on? Yes itJerry ... As much as you might not like the way they go about it .... the bashers (your words not mine) ... have legitimate concerns.
As much as the market climate changed signifcantly in the latter half of 2008 that through a lot out the window, it is difficult to overlook Sage's rivooous spending.
during 2008, Kodiak spent $25 million in BG drilling nearly 90,000 metres ... about $275 per metre. During the same period, Sage drilled 18,000 metres in BG and spent 6.5 million ... that's nearly an extra $100 per metre or $1.8 million more spent during that period. Kodiak is still drilling the property , Sage has either abandoned or mothballed all of theirs. Jacobus and Onoman are good resources, why were they never developed further?
Why do they promise updates and never deliver. We are still waiting for an update on 2009 and how they unwisely spent our money. why were they spendign money on Agor*com when it didn't really add any value. If money was to tight in 2008 why didn't they reduce their staff ... maybe it's an old biys club?
When looking at this it is difficult to have faith in Management that they will be able to manage such a large project in clavos or Nevada efficiently ... maybe the 9 million investment will become 12? On the other hand maybe Nigel and co are better equipped to build mines than build resources which begs the question, why were they ever in the exploration business to begin with. Why not search out a property on which to build a mine right away instead of blowing through cash and shares for the past 5 years.
The Nevada property might generate some cash flow to allow them to further develop Onoman and Jacobus but that it a long way away and I still believe that there will be a better opportunity to buy back in (if it makes sense) sometime over the next year. Judging by trading patterns since the news, the market is also taking a wait and see approach.