SMB's management gave its assets away - will that change?

While I applaud the operational turnaround of SBM, one needs to keep in mind that they have made some very stupid asset divestments and asset acquisitions and perhaps there is no end of this in sight.

Example 1 - massively over-paid for its Pacific Island operations and as a result almost destroyed the company with debt and massive operational losses from the two mines.  Sold one of these mines for $1, and spend a heap of money to turn the other around over 18-24 months.

Example 2 - Sold its Southern Cross mine in 2013 for $22m.  That mine is now producing 130k ounces pa and its owner is seeking to sell it off for around $400m - see article

https://au.news.yahoo.com/thewest/wa/a/32157541/400m-test-for-gold-market/#page1

Example 3 - Recently sold its King of the Hills and Kailis mines to SAR for the princely sum of $3m despite the fact that SBM was nolonger in any danger of going under.  Kailis had a resource of around 300k ounces and a useful reserve, while KoH was supposed to have been fully worked out.  SAR is showing considerable exploration success in those tenements and plans to expand its exploration program there - see today's announcement

http://www.aspectfinancial.com.au/d...Jyb3JwYWdlcy9wZGZkZWxheWVkLmpzcA==&popup=true

Example 4 - tenement 2 kms from Gwalia acquired by KIN for nothing as SBM just relinquished it.  KIN believes there is scope to find a lot more gold in that area.

I think shareholders should contact the company about these poor decisions and ask them what they are doing to grow the company and not give our assets away.   Their current plans worry me a bit as they seem to be based on:

1.  Depleting the Gwalia orebody as quickly as possible, but not growing reserves/resources outside of the mine area

2. Selling Simberi as this is not a "tier 1" asset like Gwalia and will not generate the sort of margins one gets from T1 assets.  But where the heck are they going to get T1 assets and what are they doing about this.

The company needs to undertake far more exploration then it is doing now that its debt is nolonger an issue.  I do not want to see them acquiring other assets in the way that happened in 2012.

Yes it has been a great ride since December 2015, but we need to look to the future and at this point I do not think management has its head properly screwed on beyond just milking Gwalia.

Just saying, Bobbie V needs to get a top rated exploration team together and look for highly prospective tenements that will give SBM a longer term future with, hopefully, growing asset base like NST has done after starting with what was supposed to be a clapped out mine.  There is a reason why HHL is selling out its holding - it is looking to other goldies with a growth path.

loki (now send this post to the Bobbie V and the Chairman. or something along these lines to hopefully get them moving)