Ann: 10 Year Plus Outlook for Simberi, page-12

I have been looking at getting back into SBM after a disastrous ride down from %5 back in the day and wondering if this is the catalyst?

Hmmm, $213m is a pretty sizable chunk of loose change to transform Simberi from a basket case to a cornerstone mine.

It's not that long ago it ranked 3rd on the list of SBM mines, before the ventilation problem at Leonora and Canada was in honeymoon phase.

So, to what extent are they throwing good money after bad ?

- it is the only option available

- previous investments and track record is poor and their due diligence and assessment of Atlantic was pathetic. Developing a known asset maybe seen as lower risk than acquiring an unknown entity, but if that's the logic, they are doomed to fail

- are PNG authorities pressurising SBM for some commitment after telegraphing their intentions to leave / sell

- high level of operational and financial risk in delivering project
- is there any expertise in SBM to do this?
- there is no canvassing of a JV or partnership to share the financial risk

I think I'll sit it out for now, await the JORC and PFS and stick with the view that SBM is worth the money it has in the bank only.

Sorry

Wazz