You need to be looking at asset/company valuations post June 30...

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yurts

808 Posts.

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07/06/23

11:38

Post #: 68171329
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Originally posted by Frank64: ↑
Continuing on from my last post and more along the line that We should be buying Genesis, this whole arrangement just does not make economical sense when you compare SBM and GMD. FY22 reports relative to revenues and asset values of in SBM case just the Leonora Asset compared to GMD Assets.
They should just dump, get rid of Canada's Atlantic asset considering you have to move and process 4 x more ore to produce the equivalent amount of gold as Leonora 6g/t vs 1.5g/t. Yurts say's no one wants Atlantic, the right price for a producing mine will find a buyer.
Yes there is a once off offer of cash and share's from GMD for Leonora but that's not value adding to a very prosperous exiting SBM asset. It should be the other way round at maybe a 10th of the cost in us purchasing Genesis.
I'm sorry but IMO this stinks to high heaven, we should be the ones with the mega mine in this region.

Leonora Genesis
1 Total Revenue $479,073,000 $163,071
2 Net Asset value $552,065,000 $28,637,810

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You need to be looking at asset/company valuations post June 30 2022, a lot has happened in the intervening 12 months.

"We should be buying Genesis" - can't disagree with the premise, but SBM doesn't have the corporate or operational strength. The failed merger is a testament to that.

"They should just dump, get rid of Canada's Atlantic asset" - I would expect that a +A$600 impairment to have a material negative impact on SBM SP.

"I'm sorry but IMO this stinks to high heaven," - no comment on that, but I believe it's a nest build by SBM from a litany of decisions over the years.

"we should be the ones with the mega mine in this region" - absolutely 100% agree.

SBM Price at posting: 55.8¢ Sentiment: None Disclosure: Not Held
2 Upvote

0 Great analysis

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