Ann: Production Update Q4 June FY20, page-5

There are a few highights that should get SBM back to over $3.50 shortly and perhaps closer to $4.00 when Simberi's sulphide project is given all of its govt approvals. However a USD POG above 1800 on a sustained basis could ensure that happens sooner.

The main one being that despite Gwalia still not operating at full capacity because of the non-completion of the ventilation shaft, SBM managed to add $86m to its net cash balance during the quarter - net cash balance at end of June being $90m.

Production at Gwalia rose from 39,700 ounces in the March quarter to 51,300 ounces in QJune as mill output was increased to 244k tonnes. Given that the quarterly mill throughput is expected to be 275k tonnes once the ventilation shaft is completed, there is potential for gold production to rise to about 57-60k per quarter, which both raise revenue and reduce AISC.

We still need some good new on the future of Simberi's sulphide project to ensure that SBM can claim to be a 400k ounce per annum producer on an ongoing basis.

loki (looking forward to more dividends)