SBM

0.00%

20.0¢ st barbara limited

Likewise thoughts here. Brought a small parcel today @ $1.90 and...

First 67 Last

Share
Profile

Follow
Hardrush

623 Posts.

167

31/05/21

14:49

Post #: 53538101
Share

Originally posted by jogo ↑

SBM is looking cheap on an EV:Reserves and EV:Resource basis at $222/oz and $114.6/oz respectively (based on today's closing SP of 187.5c).
On a Reserves valuation, that puts SBM, a mid-size producer, down at the region for dogs like RSG and WMX and below small developers like GPR, KSN, BDC, TGM.
There is more to a gold producer than reserves, I agree, but with 17.4 years nominal life based on average production across its mines, SBM has plenty in hand with which to increase production and address the AISC at each mine.
Seeing the Atlantic Operation build production and hold it with a low AISC is encouraging and as one of the three pillars of production, the negative opinion around its purchase price will continue to fade in the face of an improving gold price.
Leonora's labour force difficulties will be a temporary one, hopefully. If not, then the entire industry in Australia will find things difficult, and especially the developers.
Simberi remains the highest risk aspect and not just from the political/cultural/COVID-19 aspect. It seems to face the highest technical risk going forward with Gwalia a close second.
As at 31 March, SBM was almost cash/debt neutral ($2M net debt) and so unlikely to be pursuing any buy-out in the near future but they do have a number of JVs.
In the past, I have been diffident about SBM and my holding has been restrained but I now see it as a good investment prospect, although I still maintain a cautious approach in view of the need for SBM to show progress in recovering from its present situation.

In conclusion, SBM has plenty of scope to restore value as well as market confidence, and any increase in the POG will only speed this up.

Expand

Likewise thoughts here. Brought a small parcel today @ $1.90 and prepared to gradually build into next year. Only regret was that I should have got in earlier, hey but no rush or no stress my way is also good. Appreciated the HC discussion over the past year on SBM and other gold producers (not just the explorers). GLTAHs

SBM Price at posting: $1.90 Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

CMX

ChemX Materials kicks off first stage works at WA high purity alumina pilot

AVA

Ava Risk Group expands US presence with A$0.7M Substation Deal

SVL

Silver Mines models five new calderas close to 396Moz Bowdens deposit

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom

LRV

Larvotto identifies new exploration target at NSW's Hillgrove, boosting shares by nearly 20%

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

LU7

Lithium Universe (ASX:LU7) board visits Quebec to engage key stakeholders

Microcap Wrap: 5 explorers with news out today

RCE

Recce's R327 found effective against E.coli during clinical trial

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

There are more pages in this discussion • 2 more messages in this thread...

First 67 Last

Add SBM (ASX) to my watchlist

(20min delay)
Last 20.0¢		Change 0.000(0.00%)		Mkt cap ! $163.5M

Open	High	Low	Value	Volume
20.5¢	20.5¢	19.8¢	$687.8K	3.425M

Buyers (Bids)

No.	Vol.	Price($)
7	278140	20.0¢

Sellers (Offers)

Price($)	Vol.	No.
20.5¢	744228	13

View Market Depth

No.	Vol.	Price($)
5	269007	0.200
13	901320	0.195
35	1523547	0.190
20	904959	0.185
17	1487855	0.180

Price($)	Vol.	No.
0.205	539393	10
0.210	830452	15
0.215	651877	6
0.220	342582	5
0.225	269129	8

Last trade - 16.10pm 28/06/2024 (20 minute delay)

SBM (ASX) Chart

Likewise thoughts here. Brought a small parcel today @ $1.90 and...

ChemX Materials kicks off first stage works at WA high purity alumina pilot

Ava Risk Group expands US presence with A$0.7M Substation Deal

Silver Mines models five new calderas close to 396Moz Bowdens deposit

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom

Larvotto identifies new exploration target at NSW's Hillgrove, boosting shares by nearly 20%

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

Lithium Universe (ASX:LU7) board visits Quebec to engage key stakeholders

Microcap Wrap: 5 explorers with news out today

Recce's R327 found effective against E.coli during clinical trial

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Likewise thoughts here. Brought a small parcel today @ $1.90 and...

Top Stories

ChemX Materials kicks off first stage works at WA high purity alumina pilot

Ava Risk Group expands US presence with A$0.7M Substation Deal

Silver Mines models five new calderas close to 396Moz Bowdens deposit

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom

Larvotto identifies new exploration target at NSW's Hillgrove, boosting shares by nearly 20%

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

Lithium Universe (ASX:LU7) board visits Quebec to engage key stakeholders

Microcap Wrap: 5 explorers with news out today

Recce's R327 found effective against E.coli during clinical trial

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News