@colinchi,
SBM hit 6.7 cents after the Goldridge flood announcement.
It stayed under 10c for 2 trading days.
I was there holding the largest package ever in SBM buying all the way from 42c to 10c.
( I was learning the game at that time, I would lirk around HotCopper quietly without commenting)
I couldn't bring myself to buy below 10c. The day it broke 10c, I almost had a heart attack.
My friends who were invested under my recommendations........couldn't handle......they sold out.
The news was more scary at that time.....company with close to USD 400 million = above AUD 500 million debt with a cash balance of circa 75 Million. Goldridge(Solomon Island) collapsed and PNG was bleeding capital. The US 400 million unsecured notes were selling 35c on a dollar(at least that's what I heard). Moody's downgraded.....Van Eck sold out at 14c and M & G investment at 10c.
The SBM HotCopper world was just like today at BDR HotCopper. There were people blaming the management Tim Lehany and Colin Wise for all the disaster.....for all their loss. The game is always the same, just the participants change.
I didn't understood much those days and I still don't understand today......But the only thing in my head was those US $3oo Million SBM Bond buyers and US $75 million Red Kite loan lenders were not fools.
They must have seen a way of getting their money back + interest. If it was good for them.....maybe it will work out for me as well. It did.
Bob Vassie came into the scene......the Aussie dollar collapsed.....the gold price in Aussie jumped from 1350-1390 to above 1500- 1550. That changed the fortunes of SBM.
Gwalia was always a world class mine(one of the best) no doubt about it.
Only one brave guy emerged Peter Hall from Hunter Hall ....who scooped all the shares including mine which I sold in increments at not so great profit but a small profit. (Little did I know what was to come...)
Little after a year Van Eck & M & G bought back into SBM at over 10 times the price they sold for.
I am not comparing BDR with SBM. Gwalia is one of a kind mine. BDR may never come close to that type of quality.
The only thing I see today with BDR is.....If it is good for the Sprott's & Lundin's ...it might be good for me as well.
It is always easy to remember past success.....it is hard to deal with one on hand.
We will see.
