update on sbm, page-3

Thanks Strato.

A few points:-

- Given what has been done to holders, I believe Ed should be explaining things to shareholders, not a PR rep.

- D&D are, IMO, being a bit aggressive in leaving this as a buy, after they raised capital at a 30% discount. Especially as the prospectus revealed that they spent $76m in two months. I would have thought a "hold" might be a little less naive.

- They're thinking of doing this to shareholders again next year? Good grief!!

- Delphine was being disingenuous in saying a 30% discount is par for the course. The discount was so big because SBM were out of cash. They didn't have a choice, period. Suggesting otherwise is just not playing it straight.

I'm holding at the moment, but I'm looking for an opportunity to sell. Despite all of the theories that this could keep going down to the 20's, it is patently and massively oversold.

It will get its $120m, which means it won't go into insolvency this year. Gold is bouncing and this will bounce as well, once the retail raising is over and done with.

Having said that, I've lost faith in Mr Ed and his farmyard friends. This particular exercise was farcial, not the performance of a professional management team. The fact that he is now leaving press relations to a junior PR assistant just reinforces my decision to look for an exit point over the next month or two.