The thing is that reserves are actually supposed to be...

The thing is that reserves are actually supposed to be calculated based on the prospect of reasonable economic (ie profitable) extraction at close to the current gold price. Nothing that BLK has done since being in production would suggest these reserves have a hope of being extracted at a profit.

You can have an SBM reserve ounce which generally is worth A$700 in profit or you can have a BLK reserve ounce that is worth somewhere between -$400 and -$700 (as best we know). I know which I would choose.

There is a great danger of using the turnaround of SBM as a hope to cling onto when holding other companies that are not at all similar. The fact is that for every company like SBM there are dozens of others that do not turnaround. Try DML, MBN, SLR (at Murchison) for starters. I know because I owned all three once upon a time.