sabes whats going on?, page-7

re: sbm - share price way overpriced
SBM Share price to sink. There's going to be a long way for it to fall.

Reasons why - then please read the latest company presentation (26th to 28th April):

1. Market cap at $444,000,000 (at 62 cents).
2. Quoted Reserves - Total 5.42 million tonnes at 6.1 g/t Au for just over 1 million ozs. This equates to a staggering $415/oz.

3. Reserves in Southern Cross Region have a grade of 3.4 g/t Au, but production during the last 2 quarters is only 2.2 g/t Au.

4. Total Resources (including reserves) is over 7.3 million ounces. MAIN POINT HERE = However if you subtract the reserves from the Total (Reserves and Resources) to just get the resource figures you get the following:

Resources (minus reserves) stand at 94.6 million tonnes at only 1.50 g/t Au.

Also, look at where these resources have been projected to. - A particularly long way. Should these resources be termed Mineral Inventory art best.

In Summary SBM are way overpriced. Expect a significant downward path.

Good luck to those who have enjoyed the ride, however be the bubble I would expect will burst at some stage.