update, page-5

Thanks Pavbar, wadman, ests....always a pleasure to speak to the guys at SBR and more than happy to share with everyone..

One thing I forgot to mention was the quality of results released to market was discussed...the view was that SBR's quality of results were not matched by most peers, but that the market did not price this in...


My understanding of why the SP is at these level are a combination of:

(1) Market risk premium has increased, and more specifically mining explorers have been out favour by the market..

..I remember the days when explorers enjoyed $50 mil plus mkt caps based on merely nearology and grab samples...a lot has changed since then!


(2) Speed of exploration process has not met market expectations.


(3) Market prefers sexier higher tonnage, deeper deposits, requiring large capex with technically challenging mining methods and lower recovery rates leading to higher opex rates..(i.e. tunnels deep underground to chase high grade veins/pockets)..

..compared to lower tonnage, relative high grade, structurally controlled deposit starting from surface, accessible by open pit with infrastructure in place, which is what I believe is Guchab represents..

imho, I would choose the lower tonnage Guchab over the other 'sexier' deposits any day..

(4) Market has largely misunderstood the regional setting at Otavi, its mining friendly jurisdiction, infrastructure in place, mining expertise in area, and lower sovereign risk than Brasil (per my previous posts)..


(5) Even though the Results sent to market to date have been (imho) high quality and have personally exceeded my expectations, I don't think its exceeded the markets (expectations)...considering there was high turnover of shares during the 30's...its understandable that many investors who bought in those times had very high hopes (and with it brought high expectations)..

In summary..

..I spend a lot of time researching explorers listed around the world, its a hobby, the thrill of the chase.. but very rarely invest...I still think SBR is a very special story unfolding, the fundamentals have not changed...

...imho it has exciting exploration upside a greenfield explorer would love, with infrastructure in place even a brownfield project would love to have...over the next 6 months it will turn from explorer to asset holder (via Jorc resource at Guchab)...and be in a position to drill other highly prospective areas on the kombat trend...

All imho, enjoy the rest of the weekend...