Ann: Consolidation/Split - SBR, page-32

Am not so quick to slip the boot in…. yet.

Comes as complete surprise, but trying to see the thinking or so called rationale behind this.

Few could argue the Sherlock Bay project is SBR’s best chance of success in many years. If ever they are going to discover anything worthwhile, then this is it. Market has not responded kindly yet…but that doesn’t mean they aren’t on the verge of something big.

Fewer shares on issue ( provided this gets voted on) allows more room for the price to move and move quickly. One would assume that the best news should come from the assays of holes 2-4. If this news is big, then the company is giving the SP every chance to fly.

As a company, you want your best news doing the most damage to maximise shareholder growth. If it doesn’t, then what is there really to lose?? SP has done zilch for a long time now and simply failed to move. Cant really get that much lower. It could be the shake up that triggers a serious re rate with the right kind of news.

People quick to slam the board already, but I remember not very long ago a certain company (involved with SBR members) rocketed 5 bags in the space of a fortnight and immediately after their consolidation. That news had half the potential of Sherlock Bay.

Time will tell, but generally things happen after a consolidation occurs… Good or bad who knows.

My gut feel has been all along that the best news will be in the assays of holes 2-4. But many will pack their bat and ball and bail if the first assays are no good. Nepean not even in the equation yet.

So the timing could be perfect and SBR actually pulls off a master stroke.

I’m backing it is