The revision to the Gwalia resource is not an issue given the size of the resource and the number of years it will take to mine the reserves. It is difficult to measure resources/reserves of underground mines, and in this case its not going to be an issue in the near term.
The thing to note is that the grade for Gwalia keeps dropping over time, so they have to improve their operations or their costs will keep going up as production falls due to the lower grade.
I woke up too late to listen to the conference call, and I hope they were questioned on the GEP - will listen to the CC later on.
I think there was some discussion in the July quarter CC about Gwalia's capex as a result of questions raised by the analysts - but I do not recall the details. I think the basic claim by Jetson was that capex would come down as the mine was optimised, but I suggest you check that out.
I am waiting on a more significant pullback in the goldies before buying back into SBM.
loki
SBM Price at posting:
$3.38 Sentiment: None Disclosure: Not Held
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