its just a flesh wound!

For those who feel SBL is currently enduring 'death by a thousand cuts', can I refer you to the timeless words of Monty Python's Black Knight upon having both arms severed in combat with King Arthur: "It's only a flesh wound. Come on, you pansy!"

Now I do not wish to equate SBL with the hopeless cause of the Black Knight, but rather to focus on the indomitable, "never-say-die" spirit he shows. If a parallel is to be drawn, let it be with a Fortescue or a Paladin, both of which were once penny-dreadfuls but which survived and thrived because they simply refused to concede.

I see these past few weeks as the darkness before the dawn for SBL. It is possible that there have been slight delays in the ramp up to production but holders should remember that:

a) this is a cashed-up company (after the recent $13m capital raising)
b) it is sitting on a 1.47m oz JORC-approved resource
c) it is targeting 2 - 2.5m oz in its current drilling campaign to be funded from its imminent production cash-flow
d) its current EV / ounce is around one third of its West African peers, many of whom are much further from production and have smaller proven resources.
d) the Ashanti gold-belt has a pleasing record of surprising to the upside and some very rich grades have already been previously announced on SBL's greenfield acreage (see previous announcements)
e) profit margins even on the low-grade tailings that will provide initial mill feed seem likely to be very healthy (we need more info on this which will only be speculative until we're in production)
f) the next 3 years should see production ramp up to 100,000 oz per annum, for a company currently valued at just $56m

All in all, for those prepared to wear a few flesh wounds and battle on, the prospects are very exciting indeed.

I understand that each of us has a different risk appetite so please DYOR. My personal feeling - on parity grounds alone - is that the SP should multiply in the next 6 months if the POG holds above $1100 and there are no cataclysms on global markets.

Good luck all.

Gupper