SBM 1.49% 34.0¢ st barbara limited

Nordesmic Does look a bit like that, but I have confidence in...

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  1. 10,469 Posts.
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    Nordesmic

    Does look a bit like that, but I have confidence in Vassie to come up with a solution. He would not be making statements that they can produce until 2031 if that were not the case. Plus their estimates tend to be conservative, as proven in recent years.

    My main takeaway is that they will produce less then in the recent past (grades get lower further down from what I remember) and the AISC will therefore rise (which will also be due to extra cost of deeper mining). However they will mine more ore once GMX is completed - their mill is currently under-utilised and therefore they can remain an over- 200k ounce pa producer.

    SBM can not sustain a market cap of $2 billion on annual production of 230k ounces at say $1000/ounce from Gwalia, unless Simberi also has a longer term future with some useful operating margins (they are working on proving that up).

    Of course if the USD POG goes to 1500 and the AUD drops to 60 cents against the USD, then the AUD POG is 2500, giving them a $1500 margin on the Gwalia operations - and justification for a much higher market cap.

    But overall I was surprised by today's announcement given past statements favouring the other option. Looks like they wanted to inform the market in case the realities of the situation leaked out. Vassie is very much an upfront sort of guy.

    Not sure where a good entry point is - could get some real strong shorting by the big boys in the near future. Norge Bank could be back shortly doing that.

    loki
 
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Last
34.0¢
Change
0.005(1.49%)
Mkt cap ! $233.2M
Open High Low Value Volume
33.5¢ 34.5¢ 33.5¢ $678.5K 1.991M

Buyers (Bids)

No. Vol. Price($)
6 131915 34.0¢
 

Sellers (Offers)

Price($) Vol. No.
34.5¢ 327657 15
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Last trade - 16.10pm 29/11/2024 (20 minute delay) ?
SBM (ASX) Chart
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