sbl vs adu, page-4

Hi ASXO

The key thing is not share price per se, but rather market cap. ADU trading at a market cap of A$252M.

Important to look also at projected production output, cash at bank, etc. ADU i believe are significantly undervalued (for whatever reason) depsite the fact that they are at a similar stage as SBL, albeit they will probably lag SBL into production. They are doing things, the plant is being built, good cash holdings. Why their stock price is so low buggers me. Have heard from some that it is because building plant at low cost, but from others various other reasons. The point is that they are on their way and have environmental approvals, etc. Look at the photos in their investor presentations.

SBL in a similar boat but doing things slightly differently. Old plant. Refurbishment. BUT. They have haul roads in good nick (ie, already there), ROM contains existing ore and then just near the process plant ios oversized ore that the previous people hadn't crushed because it wouldn't run through the crusher. So all that needs is a rock breaker to sort that out. Can't remember grades there but pretty good.

Ore is contained in tails dam for starters, which is a little bit of a haul from the plant. Then there is a newer tailings dam there, which doesn't really need any work to make it happen. No walls to be built, etc. Sits in an old valley by memory. Then there is the old mine which has potential as yet unknown.

So when things get wet, they don't need to worry about carting from old tails dam to ROM. There will be stockpiles plus existing material on ROM plus oversized. It's an interesting project.

I don't know whether this stock will fly. Have asked a lot of people why it's not. But, all the ingredients seem to be there. Money invested already has been spent on getting things to a stage where production can start, plus many of the old buildings have been upgraded. See the photos in the various presentations. And, the project manager has done it all before.

I, like you, hope this thing will fly. I haven't yet seen a reason it won't, though I may be missing things. I hope not. One of the more interesting stocks I've seen, but one of those stocks that doesn't engender the confidence of others I have seen. Not sure why people not jumping on board en masse, but as I say, I may be missing something. I hope not. Patience perhaps the virtue here. I hope so.

Cheers and good luck.