SBM to increase dividends?, page-4

Management are very conservative and imo actually working hard for shareholders

Hedging is in place- but it’s certainly not the entire years projected production- which is doing well and doing well on costs

It has enough money to extend the lom- it actually has nearly 100 m inexcess of what is needed over time for the full extension/ development ( 100 m)

I would expect with the increase in aud pog over this qtr- assuming it holds- together together with hedges- cash holdings will increase even further - let say with this increase this qtr after development costs , sbm has 250 m plus is the Bank

With this sort of cash on hand- No reason why it won’t pay an interim dividend in early 2018 and still build the cash The in second half further- most analyst though it wouldnt start divs till next year- sbm just plods along

Last qtr ppl were expecting poor production and rising costs - sbm delivered strong production and solid cost control- it was shorted and sold
Down but has come back as ppl get more confidence as it Is definitely delivering

Disappointing day with gold aud up- but many goldies and market were down

Consistent production- Solid cashflow- rising cash balance- solid grip on costs- no debt- business is imo still a buy as it’s proving to be a financial performer and is trading at a significant discount to its peers

Good luck