Appreciate your thoughts
@loki01 particularly regarding a higher gold price (obvious I suppose). As SBM is relatively high cost, so.... high POG, means greater upside, compared to its lower cost peers. Simberi is nothing exciting, however, a 10+ year mine life is nothing to be sneezed at, with costs below the average for the industry.
@Binkey - I wonder if perhaps, as Loki mentions, with all the capex to come, SBM might do an 'RRL' and cuts its dividend, to enable it to then focus on Capex...? Hence, whilst its nice having a high yield, it only really counts if its sustainable? I am not really on top of just how much capex versus free cash flow SBM is looking at over the next 2 years though... I know SBM have made a huge effort to get rid of their debt, but.... debt is cheap, and surely they would look to utilise it if required, versus more dilution.
Fair point about the mining lease, though, surely, the odds are in their favor, as SBM seem to have been good operators of the project to date.
@nordesmic - as always, your posts make a lot of sense. As you say, in the past Gwalia has been a huge cash cow, that has changed, so... sentiment for SBM has waned. Hopefully they don't miss guidance by too much. I only hold in my super fund currently, though, if it continues to underperform, I am looking to rebalance from my better producers. Look forward to your thoughts post quarterly.
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