Ann: Production Update Q4 June 2017, page-10

Hey Wieman,

I think your analysis is fair on the expected profits for SBM but I feel the reason the stock is maybe not held in such high regard, in relation to its positive cash flow, is the fact that it only has two core assets in the fold.

With Gwalia being at such a depth and the main producer of cash flow, I feel some larger investors would see this as a risk that is spread across more assets with other gold producers in the space (possibly with a lower profit margin) . Geotechnical/ Mining limits may well not have been reached at Gwalia yet but I feel analysts would consider at which point the ground support and mining technique may have to cease at the depths of current production?

I think SBM would have to consider looking to capturing other assets in the local area before looking at a dividend as it seems an "all eggs in one basket" approach at the moment which is fine but doesnt give investors a good long term prospect (5-10 years).

Enjoyed reading your wider economic analysis also, I feel the gold price will spike when the US/EU/AU debt mountain unravels. The GFC was masked by printing more money, the problem is yet to be solved... !

Regards