some thoughts..., page-23

I think the points above re: cash cost are totally vaild and I am glad that they have been raised. I hope there is some definitive anwser for shareholders in this regard soon.

From a very simplistic point of view however (albiet very simplistic on purpose for effect) just imagine that the cash costs are $1,000oz (I know that won't be the case but bear with me).

At 100,000oz production a year at current prices we would be on 35mill profit a year.

Pick a P/E multiple x5 = 5 bagger

x10 = 10 bagger

If you get my point you can see how cheap this may be.

OK, if cash costs are high (they probably won't be over $600 oz) and gold price tanks you can throw this out the window, but even then...

Do you think with QE part 2 likely to hit the world tomorrow morning, that is going to happen to gold any time soon? Even if the world economy takes a nose dive there will be a run to gold.

When world governments print money like they are playing Monopoly the writing is on the wall. I am not one that really believes that gold will hit $5,000, though it could, but I can't see it dropping back a long way for some years with the sheer amount of soverign debt in the world economy.

I could be wrong, but if I am reading this correctly, SBL could will turn out to be one of the easiest 5-10 baggers on the ASX at this time.