Ann: Quarterly Report Q4 June FY20, page-22

I am pretty disappointed with the forward guidance. The ramp up of Gwalia to the point of again being a 220k+ ounce pa producer is taking too long, hence the costs are much higher than they should they would be. What is saving SBM, along with most other goldies that have had a very good run is the high gold price.

I am not too concerned about the hedge - not nice to have but there is an end to them, and they are not as badly hedged as other mid tier goldies (think RRL) whose share prices are doing well.

The problem is that while the management is competent they have lost momentum in delivering outcomes and the share price will be somewhat of a laggard. Jetson was pretty evasive in his answers on the CC. Obviously he did not want to commit to anything that may not get delivered. The analysts did not seem too pleased with his answers, IMO.

The figures for FY2021 suggest they will still achieve good operating margins at the current gold price, so perhaps after the analysts give their downgrades with the resultant share price fall there will be an eventual push in the share price above $4.00.

It was good to hear that they are finding more oxide ore at Simberi.

So where are all the other great opportunities out there? I am also holding RSG, PRU, EMR, WGX, WAF, and KCN - except for PRU they all seem fairly risky.

loki