I missed the preso earlier this week, but just had a read...

I missed the preso earlier this week, but just had a read through it.

Couple of observations / questions:

1. Jeez they need some help with their comms. Two charts from from slide 10 relating to Brilliance, initiative 1 (de-bottlenecking Gwalia):




Both of these are ostensibly carrying the same message. "We've improved the metric through the course of FY21, and expect further improvement in FY22."

The first chart though, they've decided to show the FY22 further improvement as a line (that appears to be flat) over FY21 figures (i.e. making it look as if FY21 figures didn't quite reach some target). The second chart is better (though it could have done with a (subtle) trend line to reinforce the message).

They then use the exact same color schemes as chart 1 above to convey a different message for Atlantic uplift 1 (slide 18 and 19) - where they are using it to compare FY21 actuals v. FY21 target.

Surely, keeping it simple (and consistent) is part of brilliance.

Compare the complexity of the SBM preso v. the simplicity of the NST presentation. I understand that SBM are doing complex stuff, but not sure that sharing this level of complexity is helpful.

2. Re. accountability to results. It was only a year ago that they completed the Gwalia Extension Project (ventilation improvement; c. A$120m capex). However, there was no tangible improvement from this, and it appears to have dropped off all comms. Surely a reminder to folks that we did this big project successfully (even if slightly late), and it led to these improvements. That kind of messaging reinforces confidence in management.

3. I will catch the presentation when it is made available on replay. However, was there much mention of Beaver Dam and Fifteen Mile Stream re. Atlantic? I see it mentioned on slide 20, but I would have thought that this was one of the most critical activities.


I still hold SBM (despite the frustrations), and I still think it is likely to be a rocky road for them over the next couple of years. But I do think there is something there to build from. As long as they don't stuff it up! How they travel against a fairly gentle guidance for FY22 will be key for me. If we see the drip-drip drop in guidance that we've seen for the last 2 years then it may be the last straw. Time till tell.