I agree that was an excellent announcement, but it just formalised what we knew from the two previous announcements when they reduced the debt.
Simberi has milling capacity of around 5mtpa (as you suggest), but the PNG govt has only given them the right to discharge 3.5mtpa of waste from the mill. I understand that getting the upgrade for waste discharge from 2mtpa to 3.5 mtpa was a difficult process and that additional discharge rights to go to 5mtpa may not happen, at least not for a long time.
The sulphide complexed ore requires some fairly expensive plant and SBM has not yet decided a path on how this ore will be monetised - but I think it will in some form in the fullness of time (possibly sell it as a concentrate to a company with the plant to extract the gold).
I like your enthusiasm for the company - but perhaps your share price valuation is just a little over-done. Maybe if their drilling proves successful there could be some such major gains in the timeframe you suggested, and it would make us very happy.
Good luck, and hangontothemSBMshares.
loki
SBM Price at posting:
56.5¢ Sentiment: None Disclosure: Held
(20min delay)
