the insto's / HNW have been sold a lemon while they were advised of high demand and almost guaranteed returns....
seeing the market reaction, the last thing they're going to do is buy more ...
fool me once.....
No doubt it is an over-reaction as SBM haven't actually spent anything and now have even more cash.
But they are looking to operate on quicksand
the climate, the operational risk of getting stuff there and installed, locating the staff there, the tribes, the corruption etc etc
- they need a 25% contingency in terms of both costs and the timeline.
and also SBM have morphed into a one trick pony in PNG, while the last time they had a pile of cash they were in Leonora and a side interest / experiment in PNG.
Looks like yet another set of executives who start living the high life when they get to the top table and their brains turn to shit. Look at all those wasted opportunities locally with $150m in your cheque book.....
the bet now is that they see the light and keep well away from Simberi and the wilds of PNG and re-focus back to a t1 juristiction.
I'm not taking that bet at 34c, but maybe later on.
Good Luck,
Wazz
SBM Price at posting:
34.3¢ Sentiment: Hold Disclosure: Not Held
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