Gwalia is now an extremely deep and high cost mine, there is only so far you can push a conventional trucking fleet when your mining front is 2km below surface as it becomes ridiculously inefficient. Ventilation is also a major factor when mining this deep.
SBM made a severe strategic error (one of many) a decade ago when they decided not to proceed with a scoping study to look at installing a haulage shaft at Gwalia, which while expensive would have solved quite a few problems.
This decision, plus a whole smorgasbord of shocking acquisitions since 2012 including Simberi, Gold Ridge and Atlantic Gold highlights that their due diligence has always been sub-par. At the same time, the Board have generally failed to hold each other accountable and keep shareholders interests central to the business.
Should easily have been an ASX200 company under half decent leadership, instead it now seems to be going through its final death throes.
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