The big shareholder has interests in other companies in the area and Kombat also needs a big partner. SBR's tenements are pretty extensive as well as attractive and it is quite possible that a larger miner could be attracted in to swallow all or, at least, take a controlling interest in all.
I've noted that iron ore prices have hardened a bit because of stabilisation of Chinese demand and that demand should signal demand for Cu also. There's no suggestion that the current price for Cu is particularly vulnerable.
First, however, SBR needs to get out a meaningful JORC for Guchab and I'm relieved that they've now got both drills working. The coincidence of the drill's gearbox burning out and the drilling of 'iron hat' put me in mind of that sci-fi film, Armageddon. It's difficult to take a view on their drilling strategy because they don't explain it. Whilst I take the point about electrical storms and the rainy season, I don't see why they diverted one of the drills to drilling there.
So, whilst I agree that bringing in a bigger partner for the next stage (further exploration of the tenement and development of Guchab and other discoveries) could benefit shareholders, it is neither necessary (SBR has cash) nor beneficial (because of the rock bottom price) to do it now.
They need to get on with proving up their current target and I've been saying that for months. Both drills should remain deployed on drilling the Guchab valley until they can JORC a good proportion of their exploration target.
If they want to drill Nehlan, they should explain the strategy and justify diversion of resource from Guchab.
Drill it, JORC it, do a scoping study. Then they will have something to sell to the market.
SBR Price at posting:
4.0¢ Sentiment: Hold Disclosure: Held
