well said crusader. on the point sbm being considered a takeover...

well said crusader. on the point sbm being considered a takeover target you would think that is near impossible. they have close to $400,000,000 aussie dollar debt and a market cap of about $80,000,000. their best mine gwalia has been in operation for 100 years and from the quarterly they have mined less ore per quarter for the last 3 quarters. how long can it keep going. gold production has decreased in this mine and its the only mine making any money. no one in the gold industry would pay $500,000,000 plus for the company when gwalia is the only mine making money.

ive seen many company's in the gold sector over the years go belly up due to massive debt issues. Son's of Gwalia this very mine closed and went into administration in 2004.

below is the extract

The Gwalia Gold Mine is located at Gwalia, a few kilometres south of Leonora, Western Australia. It was originally established by Welsh miners in the late 19th century and Herbert Hoover, the later President of the United States, served as the mine manager in its early days from May to November 1898.

It is operated by St Barbara Limited. Apart from Gwalia, St Barbara also operates the Marvel Loch Gold Mine at Marvel Loch and owns the Tarmoola Gold Mine, which is placed in care and maintenance.

All three mines were previously owned by the now defunct mining company Sons of Gwalia Limited. Sons of Gwalia went into administration on 30 August 2004 and the company's gold mining operations were sold to St Barbara in March 2005 for A$38 Million, having been valued by the Sons of Gwalia directors at A$120 Million.