Ann: Quarterly Report for 3 months ended 31 March, page-32

re: Ann: Quarterly Report for 3 months ended ... SBM is run like a Public Service department.......I note they recently (in the last month or so) reduced their head office in Melbourne from 2 floors to one........if that isn't an admission of gross waste in the past tell me what is? Probably just the tip of the iceberg, I recall lots of questioning in the past of their very high 'administrative costs'......it's been one big party methinks, and now Mr Lehany has to try and clean things up.

Can't see the majority of the funds from the last capital raising going where they were saying they would, given the speed with which they spend, it is reasonable to suppose they would have had a foot out the backdoor already if it were not for the raising....

"The net proceeds from the placement of $75 million will provide St Barbara with a strengthened balance sheet and funds that will enable it to:
•
partially buy back St Barbara’s convertible notes currently on issue at an appropriate discount; and/or
•
fund their later potential redemption (noteholders have an early bond redemption right on 4 June 2010, and otherwise the convertible notes mature on 4 June 2012)."

Yes, they sure would be absolutely counting on a much higher AUD POG in the near term to fix up the cash flows whilst they take the axe to the waste. One things for sure they better realise that whilst the Public Service doesn't run out of taxpayers (though this is actually starting to look increasingly problematic), SBM will run out of participants for future capital raisings.....