Nate have a look at some of my recent posts, and read the...

Nate have a look at some of my recent posts, and read the quarterly reports.

Obviously Gwalia is a cash cow now and probably for the next 2-3 years, after which grades decline somewhat so they will have to produce more ore for the current mill to maintain gold production at current level - they have the spare milling capacity to do this without spending money on mill expansion. But probably costs will go up a bit to produce the same level of gold there. There is scope to increase mine production once they spend about $65m on a new ventilation shaft.

Uncertainty about the future status of Simberi is keeping the share price down, IMO. If they sell it they will be a one mine operation and then possibly pay too much again for another mine like they did last time in acquiring ALD.

Fair price is around $2.90 given the gold price and uncertainties.

Good team technically, not so sure about them having the skills of EVN, NST, RRL to grow the company.

They are cheap relative to EVN and NST if they can keep delivering the same sort of quarterly reports into the future.

SBM will run well if the gold price rises and is supported by fundies.

loki