This sounds worse than what I was expecting - BOD going to give the company away for a song.
I agree that the Canadian operations should be sold if SBM is unable to get the approvals to profitably operate the mine. First they should put some pressure on the local govt by putting the operations into C&M and let the unemployed workers send an additional message to the govt.
As for Simberi, selling so much gold reserves/resources with the existing plant etc for $50-100m is farcical. It should be retained by SBM and put on C&M if the current conditions are not right (or funds are not available) to later upgrade the plant for processing the sulphide complexed ore reserves.
It seems as if the management and BOD has lost confidence their own ability to manage even their Gwalia operations. The funds from the sale of Simberi/Atlantic would be used to repay outstanding debt and undertake the mooted expansion at Gwalia, I suppose.
I have been out for some months from around $1.60 level, after getting cut up a bit on some SBM trades, waiting for a turnaround in operations and I never imagined things would get so desperate.
GLA.
loki (SBM, thanks for the memories and for helping me to build up my portfolio.)
SBM Price at posting:
88.0¢ Sentiment: None Disclosure: Not Held
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