sbl building up business for 2011/2012fy, page-6

Sellier

ah, let me show you where you have gone wrong here:

1) nectar calculations are using very conservative figures, say $800/oz production costs which is higher than the current market expectation of $700/oz, he's using POG of $1650/oz which is considerably low looking at the prices we had during the last qtr.

2) nectar is most likely using $1650 in USD, you cant compare your calculated $2m in USD with the current market cap $30m in AUD, need to consider the FX rate expcially for large amts like this

3) On the 1st slide in nectar's post, the company stated "Company actively progessing opportunities to expand production", so production might have increased, but again nectar's calculations are conservative and using a fixed production amt of 980oz and you cant assume this same amt is produced in the next 12 mths

4) apart from being a gold producer, SBL also has interests in manganese and is also an explorer with more of the Ashanti Belt to be explored, so you cant just justify the market cap of $30m just on its producion of gold

Pls read a more detailed report below as to why SBL is undervalued atm contrary to what you just said:

http://www.signaturemetals.com.au/pdfs/InvestorPresentation17Aug11.pdf