Only problem is, as any long term holderin a mining company will tell you, as soon as they move from explorer to mining, there is a sustained drop/slide in SP while feasability studies are going on, financing is being arranged, and mine sites are developed due to the lack of flow of exciting drilling results (see Nevsun and Sunridge as examples where excellent deposits have yet to translate into value for current holders). It only picks up when mining starts, and only even then when it is clearly successful and estimated reserves are likely to be reached or exceeded. SBS seem to be in that transition phase now with Zara and possibly Tusker. And both will only get off the ground if they are very feasable and financing for the whole project cost can be arranged. It is unlikely, unless SBS is joined by a "friendly" cashed up partner, that anyone will stump full development costs in the current climate. The only bright side is that Nevsun is leading the way in Eritrea and once their project funding is in place should be well down the track to mine development once SBS release their feasability study for Zara, and the Nevsun progress (and possibly Sunridge progress) should hopefully allow financiers to better assess Soverign risk issues for funding projects in Eritrea.
Ideally you sell out now when drilling stops and buy back in when mining is about to commence, but selling right now is not such a bright idea!
SBS Price at posting:
2.9¢ Sentiment: LT Buy Disclosure: Held
