Yes I think the reasoning is that the Simberi sulphide project (once the oxide is used up) is worth pursuing. It's a classic 'boiling the frog' scenario though because the project timeline has been pushed out and now there are more and more problems with the existing operation. If they knew there were going to be so many problems in the last 12 months they probably would've cut it from the portfolio altogether.
The better mid-tier producers have generally done deals to remove under-performing smaller assets, EVN for example has done this for many years. Usually it's done when there is still meat-on-the-bone for a junior though. No one is going to want Simberi now.
SBM Price at posting:
$1.54 Sentiment: Hold Disclosure: Not Held
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