level headed view, page-5

There is no question SBL is a very high risk stock. Many are complaining about the price and while I am down a packet, from what I can tell the updates provided so far are pretty standard for goldies in SBL's position (ramping up, fine tuning, will advise once steady state is reached). The quarterly said gold sales should make up the expected cashflow shortfall, and it is normal for companies to keep the 15% capital raising option alive.

Seems like the tailings are producing good grades so hopefully we have a nice cashflow kicker early on.

What concerns me is that the way to add underlying value is to increase the resource base and to convert resources to reserves. At the moment there is no reserve base so many investors wont even look at this company. The challenge is that these conversions require drilling and analysis and we are in a pretty dire situation where results seem to take forever. I think finding a way to get quicker results would be a big help to improving shareholder value, but I have no answers for this.

It would also be good if there could be some more guideance about what will be mined and what grades will be expected once we have the plant fully functioning. A bit more info on the future (i,e next 12 months) would help I believe. All risks weighed up I think SBL is a bargain at the moment.