Is SBM share price now at A$2.60 a buy?, page-13

It doesn’t necessarily have to return to the previous price (too many people in the markets believe “whatever goes down must go up” but it should get to fair value.

We’ve got gold on our side and an extra 90kozpa from Touquoy which increase the earnings to the same (or extremely close to) levels that would offset the dilution so it’s therefore not unreasonable to expect us to trade back to high 300s very soon.

EVN is a very good example of how fast gold producers can move. They hit 305 in early May and in just 4 weeks got back to 413 just on gold sentiment and expectations for a good Q4. They are valued very generously at >PE30 sonit just shows that even fully valued companies can move fast when they get going.

We are valued very low compared to our peers and to our former self so if we do get a nice jolt, there’s no reason we can’t move rapidly too.

If Moose River permits are approved or Simberi sulfides look good, we’ll surpass our previous valuation.