key points from the agm

hi attended the AGM this morning.

Great presentation by MD Bill Oliver, confident about the progress SBL has made this past 12 months and bullish into the future.

Key Investment Points

- First things first. Project is on track, on target and WILL be commissioned DECEMBER, first pour JANUARY 11. No overruns expected by management.

- Next and most important, Cash costs. the reason these have been unable to be released is because of the variable nature of tailings. Every estimate is different and as such they are only able to get within +/- 10% and the market demands cash costs to be at a higher level of accuracy +/- 1%, otherwise if costs are above expected, the SP will get punished.

When pressed for a ballpark figure, the CURRENT estimate is $600-700/ounce which at current gold prices (pushing 1400/oz) renders the project easily profitable and generating roughly 700 dollars an ounce. 26000 ounces (LOW ESTIMATE given output of 350ktpa) * 700 = 18.2 million dollars per year. Which is extremely handy for as early output is essentially a side project. generation.

- Next. Cash flow. Gold Credits are paid out in 2 -3 weeks

- Plant Output. 350ktpa is the beginning. If deemed profitable, for a small cash outlay (3-4 million), output can be doubled to 700ktpa by adding an additional mill (bottleneck) at the front end of the project. According to directors, maximum theoretical output from this will not exceed 1mtpa.

- The directors then reiterated the extremely high prospectivity of the Ashanti Gold Belt. They are only 30 kilometres north of Obuasi, along the strike line, a deposit, a 50million Oz+ resource. The same mineralisation at Obuasi extends along the strike line into Konongo.

A question posed from the audience asked how did the company get so lucky as to secure this tenement in the first place --> answer was this was a GFC fire sale asset.

- Another question was asked re: tenement leasing. Due to good relations with the local Ghanaians (job creation from actual Production - not just exploration), tenements extended to 2023 (rare for other explorers in the area), with prospecting licences renewed on a year by year basis. These licences are automatically renewed as long as there is continued drilling, and SBL is planning an aggressive drilling program.

- Drilling start? Answer - as soon as the wet season finishes, which is traditionally November. Once dry season is established (which should be soon), drilling rig operators wait 2 weeks to allow ground to firm before sending rigs on-site. Rigs will be on standby for this.

- Where will they drill next? Bill is saying that they are not going to infill drill the known 1.27 million JORC resource as it is of limited upside to shareholder value. The plan is to drill the new prospective tenements first and make headway into discovering the next 10+million Oz resource in the Ashanti Goldbelt. This is what the company is about, the January production is a nice free kick and will be used to fund their aggressive drilling program which is what investors tend to forget, that they are actually an EXPLORATION company hiding behind early production.

The long ball: valuation from this production will be microscopic compared to delineating a 10MOz resource which will require a 200M Capex Plant to extract.

Timeline in order
1. Resource Estimates from Boabedroo West, Obenemase.
2. Commissioning December
3. Commencement of Drilling. Personal side note: the last time SBL issued a commencement of drilling notice, the SP doubled (albeit this was at a time of pure Au-phoria)
4. First Pour January
5. New tenements will be drilled out (there is a MONSTROUS amount of drilling to do, but this is the companies clear goal, and they are serious about proving the next big deposit in Ashanti (170MOz gold belt), and they are targeting nothing short of 10 million ounces.

To put this into perspective, Perseus have a MC of 1.3 billion after proving up 2.1MOz Reserve + 2.1Moz measured and indicated + 3Moz inferred. Perseus drill over 25000m/month and SP has grown by over 1500% in the last year and a half.

There was more to the meeting, but I'm exhausted haha, will add some more points from the meeting but that is a concise summary so far. Suffice it to say I am happy to be holding these guys and topping up at every opportunity over the next 12 months.

In my eyes, this is the next Perseus Mining.

Cheers
-Cali