SBM

10.0%

33.0¢ st barbara limited

Yep and Gwalia cashflow should improve dramatically as ounces...

First 106 Last

Share
Profile

Follow
BobbyKennedy

7,563 Posts.

1779

26/02/20

16:46

Post #: 43168702
Share

Originally posted by loki01 ↑

Fangk

Vassie has said (and I think its also confirmed in some past reports/presentations) that they will be able to truck 1.1mtpa once GEP is completed.

If we assume that the average ore grade is 7 g/t over the next 3-4 years and the gold recovery rate is 97% then annual gold production from Gwalia should be around 240k. If the grade is only 6.5 g/t then annual production would be around 223k ounces. Until recently they have been able to produce at above the average official reserve grade by accessing high grade ore shoots that were not included in their conservatively based reserve estimates. I think that for the next few years this could once again become a feature of their operations, and provide upside surprises to our operating profit estimates.

SSP is what it sounds - gold complexed with sulphide ore reserves which means it needs to undergo extra processing to liberate the gold - this is via some heating process (roaster such as RSG or autoclave such as AQG) or can be done by a biological process (there was once such an operation in WA but it closed down). There is a very significant extra cost both in plant and operational costs with this type of ore. A few years ago SBM released a study on processing the sulphide ore into a high concentrate ore and shipping it to a processor (which could be Lihir gold mine). From memory this was not considered economic back then. Gold in concentrate was at around 140k ounces pa production (I think) and of course SBM would have to share the profits from these gold sales with the gold processor.

The gold price is now much higher and the exploration at Simberi is hopefully going to extend the mine life, thereby increasing the NPV of the SSP. The first step will be the release of the new ore reserves next month, I believe.

loki

Expand

Yep and Gwalia cashflow should improve dramatically as ounces increase, waste and therefore costs fall, gold rises and importantly the CAPEX drops off as GEP is completed. The Mar qtr report in April should be a cracker.

SBM Price at posting: $2.51 Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

EEG

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

HotCopper Highlights: Your most watched stocks for Week 46, 2024

3DA

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

CLE

Cyclone signs MOU with Vale for development of Iron Bear play

GDM

Banshee's historic trenches prove rich in antimony and gold for GDM

BNL

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

CUF

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks

IRX

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

First 106 Last

Add SBM (ASX) to my watchlist

(20min delay)
Last 33.0¢		Change 0.030(10.0%)		Mkt cap ! $298.8M

Open	High	Low	Value	Volume
31.0¢	33.0¢	31.0¢	$3.101M	9.730M

Buyers (Bids)

No.	Vol.	Price($)
5	185515	32.5¢

Sellers (Offers)

Price($)	Vol.	No.
33.0¢	583860	7

View Market Depth

No.	Vol.	Price($)
4	184515	0.325
6	146000	0.320
6	234174	0.315
20	692788	0.310
10	391651	0.305

Price($)	Vol.	No.
0.330	529968	5
0.335	221642	5
0.340	466874	5
0.345	23233	3
0.350	4189	2

Last trade - 16.10pm 15/11/2024 (20 minute delay)

SBM (ASX) Chart

Yep and Gwalia cashflow should improve dramatically as ounces...

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

HotCopper Highlights: Your most watched stocks for Week 46, 2024

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Cyclone signs MOU with Vale for development of Iron Bear play

Banshee's historic trenches prove rich in antimony and gold for GDM

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Yep and Gwalia cashflow should improve dramatically as ounces...

Top Stories

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

HotCopper Highlights: Your most watched stocks for Week 46, 2024

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Cyclone signs MOU with Vale for development of Iron Bear play

Banshee's historic trenches prove rich in antimony and gold for GDM

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News