CUB and uberplodder: I think there are a number of likely...

CUB and uberplodder: I think there are a number of likely reasons cashed up companies haven't jumped on SBL: the following are just some:

1. It was run by greenhorns (in terms of experience in African mining).

2. Small cap gold mining companies have been out of favour for years - lagging behind physical gold / gold futures.

3. Possible difficulties in getting information on costs.

4. Uncertainty regarding what tax increases the Ghanan Government was going to introduce.

5. The fact that the company has no staff permanently on site at its main mining operation - SBL is an investment company, not a mining operator.

6. Relative lack of liquidity trading this company on the ASX (as with most penny dreadfuls).

7. The long term downtrend in SP has only stabilized in past few months.

For a small investor like me many of the above reasons were why I bought and continue to hold - it is a company for which SP is low compared to net tangible assets with the lure of the possibility of striking an elephant in the Ashanti Gold Belt. Being a penny dreadful, big players had not driven up the SP.