Target lift to $1.80, page-5

Mygalz

Thanks for sharing

Simply an amazing price target from them.

I think MacBank are right about SBM being conservative in their 2016 guidance - am expecting Gwalia to deliver above the top of its forecast in terms of production and hence this should mean lower AISC and higher operating margin.

I understand the Gwalia mine shaft could cost in the region of $100-120m and then there is some substantial money to be spent in the next 4 years at Simberi to enable them to process the sulphide ore into a concentrate for export once the easily accessible oxide ore has been depleted. Not sure what the processing upgrade would cost, but less than $100m is my guess. Once these capital items are completed we will have a long life mining operation at two sites, with Gwalia being super profitable.

loki (hang on for the ride)