sbl building up business for 2011/2012fy, page-8

Hi robstarr,

i get your point but it is the production rate which makes this a small scale project. 20000 oz p.a. production, even at 800 usd / oz cash costs will generate a profit of 16 M$ p.a.
SBL get 70 % of that so 11,2 M $ profit before tax = 8 M$ after tax.

current market cap is 33 M$ so the market applies a P/E of 4 on these potential earnings which is still a lot considering that most of the profit will be spent on exploration and overheads.