Why SBM is on the rise?, page-2

Zeeshan

If you compare their September 2014 quarterly against their June 2015 quarterly plus read their latest presentation then you will get a feeling for how far they have come and what their prospects appear to be.

I agree that the share price seems to got a bit ahead of where I thought they would now be, but we have our opinion and the market decides on price.

I think there has been a big sentiment change over the last few weeks towards mid-sized (by output) Oz focussed goldies as the AUD fell below USD70 cents and the AUD POG rose to 1620, especially the lower cost goldies such as SBM and EVN, despite their high debt levels. These goldies are a natural hedge against a continued fall in the AUD, which could retreat back to USD60 cents or less. Plus many of these goldies are improving operationally and lowering costs - the lower oil price has helped.

Things you may want to take note of in regard to SBM:
1. vastly improved management
2. high operating margins at Gwalia and continued operational and output improvements
3. The losses from the pacific island operations has turned into a surplus by the sale of Gold Ridge and the turnaround into profitability of Simberi
4. Large cash surpluses each quarter
5. Paying down debt in USD terms, but not in AUD terms (due to falling AUD)
6. Substantial cash balance despite debt repayment
7. Company is no longer seen as not being able to meet its future obligations - credit rating on its debt securities have been upgraded.

The company is presenting overseas this week and next week. Perhaps there is a bit more interest as a result of that?

I dunno. Good luck.

loki