Ignoring cash and other financial assets, current ASM operations are chewing up about 20-30m per year (to be confirmed in the earnings report). This announcement implies that next year Simberi operations and associated (non expansion) capex will be break even.
Thats a huge turnaround if it happens.
Balance sheet funded capex projected over next 2 years means the future value of SBM will be anchored to the return of that capital. Assuming it's in TDs at the minute, getting 5% ish, ROC needs to be higher to support higher share price.
Plus a thousand other variables.
Then, there's Canada. BOC cutting rates, unemployment creeping up to 6.5%. Next year is an election year. Is it possible the mine permitting is reviewed?
SBM Price at posting:
21.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)