Ann: Quarterly Report Q1 September 2017, page-9

It was a good report, especially in the light of what had been forecast. Judging by the way the share price is reacting this morning the analysts have said some nice things about SBM. I wonder at what levels they are recommending clients buy SBM?

I bought back half my holding yesterday morning, but as I think the gold price will head towards its low in November/December it seemed wise to hold back. Given that Kimmi is in communion with the Trumpster, the usual seasonal gold market pattern, expectations of a rate rise by Yellen in December (and possibly more in 2018), and the way the GDX/GDXJ?HUI have been acting I would expect the USD POG to head under 1250, and possibly as low as 1190-1220. AUD POG likely head under 1580.

In the meantime SBM seems to be moving towards $3.00 on the back of this report, especially its great operating margins. The $199m in cash/bullion is very handy and the cashpile will keep growing strongly despite the Gwalia capital works.

SBM still has the same issues mentioned in the past - very limited life at Simberi, Gwalia to remain a cash cow for another 5 years, but then what? and lack of growth options.

Bring on the December goldie puckfest so that we can fill up our golden trucks with cheap goldies.

loki ("Toot, toot here comes $3.50 in early 2018" said Tootle the little red railway engine as it come past lugging another load of freshly laid SBM golden bricks - or maybe not)