Fair comments loki. In terms of Gwalia, it remains to be seen...

Fair comments loki.

In terms of Gwalia, it remains to be seen when that rise in costs/fall in grade will come. Even if grade tends toward the reserve grade (currently production well over it at 11 vs 8) there is still plenty of margin in the operation. Plus with the improvement projects ongoing it sounds like there will be some cost reductions that can offset some of the pressure from deeper and lower grade.

Bob Vassie was in the AFR again yesterday talking about the investment in Peel. The article also mentioned his previous comments about wanting to buy a large scale gold producer ~250koz pa. Of course he wants lowest quartile costs and in Australia as well. Seems like this is the desire of pretty much everyone in the industry. They want what are essentially unicorns, they don't exist except for Gruyere and that opportunity went to Gold Fields. DCN is the only other new project that comes close. EVN were smart to acquire Cowal when they did but at the time it was worried they paid too much.

I can't see SBM touching BLK given their expressed desire above.

I only have a medium term hold of this stock but I think $3 at least is fair value.