SBM - St Barbara Limited

[roka]

Re: SBM - St. Barbara Mines

Interesting article in todays SMH:

Ambitions realised
Like Monarch, St Barbara Mines has long held ambitious plans. But it is a lot closer to delivering. Since picking up assets from the administrators of Sons of Gwalia in 2005, St Barbara has worked hard to turn some tough mines into decent earners.
St Barbara expects to produce 165,000 to 170,000 ounces at a cash cost of $525 to $550 an ounce this year. The company is looking forward to its long-awaited, high-grade $117 million Gwalia Deeps project to enter production in the September quarter.

The managing director, Ed Eshuys, said his company should be producing gold at a rate of 450,000 ounces a year by December and hoped to become a 1 million ounce producer by 2010 through additional discoveries or acquisitions.

St Barbara is spending $35 million a year on exploration, with an average discovery cost of $20 an ounce.

http://business.smh.com.au/digging-deep-for-golds-rich-rewards/20080511-2d12.html?page=2

 

[noirua]

Re: SBM - St. Barbara Mines

St Barbara have slumped badly with the gold price and stand a longway from the 2008 closing high of 98 cents. This radio report, back in April, is interesting in that it lays out the prospectus in WA: http://www.brr.com.au/event/44506

 

[noirua]

Re: SBM - St. Barbara Mines

St Barbara have slumped badly with the gold price and stand a longway from the 2008 closing high of 98 cents. This radio report, back in April, is interesting in that it lays out the prospectus in WA: http://www.brr.com.au/event/44506

I've decided to increase my holding in St Barbara on the back of increased oil prices and of course gold. Looking cheap after the 35% pull back and worth a punt, MAYBE, for those who accept high risk, imho. One of the most interesting Aussie gold gambles, mainly at the very deep, Gwalia Deeps.

 

[MRC & Co]

Re: SBM - St. Barbara Mines

Agree Noirua, I opened a position at close today.

Gold at least to me, looks like it's ready to go on a run.

SBM - Great volume today, large spread, closed near the high, broke out of a (weak) descending triangle.

Really want to see it break the $0.75 mark to see it breakout of it's longer term trendline from it's highs.

RSI is also confirmation, with it about to break it's late April high, despite price still being far from it's respective price on the same date.

Of course, all comes down to POG!

Good luck too all on board!

You still holding Festivus, or did you get spooked?

 

[Uncle Festivus]

Re: SBM - St. Barbara Mines

You still holding Festivus, or did you get spooked?

I dropped 20% from the port @ 85c to get some cash for others, but still hangin in there . Still waiting for a BIG event before commiting to more gold stocks, and looking at physical too at the right time ie if when the $AU has a meaningfull correction to give the local price a kick? Waiting, waiting.....

PS this is still grossly undervalued if Ed & the boys deliver on their promises!

 

[MRC & Co]

Re: SBM - St. Barbara Mines

looking at physical too at the right time ie if when the $AU has a meaningfull correction to give the local price a kick? Waiting, waiting.....

PS this is still grossly undervalued if Ed & the boys deliver on their promises!

Yeh, these are the two points for me!

The AUD is killing us gold investors here at the moment!

Definately undervalued, another reason I got on board, along with the technicals!

A few profit takers today by the looks of it, but enough buyers came in to hold it up.

 

[explod]

Re: SBM - St. Barbara Mines

Yeh, these are the two points for me!

The AUD is killing us gold investors here at the moment!

Definately undervalued, another reason I got on board, along with the technicals!

A few profit takers today by the looks of it, but enough buyers came in to hold it up.

\

Yep, could not help myself. Back in today as I believe the gold price has built up the momentum to break resistance at U$950 and then may test the high. September is the next hot season for gold which is a way off yet so a lift of buying here due to oil etc. would be very bullish indeed.

The rise in gold over the last few years has more than offset the change in currency between us and the US. It is an issue given more credence than it should IMHO. Just another throwaway from the financial industry. Many of the old seniors got burnt (the suckers) following the 1980 spike and have turned everyone off since.

Cant' see much risk in a punt on SBM anyway.

 

[eddyeagle]

Re: SBM - St. Barbara Mines

Has anyone got any thoughts as to why SBM has fallen from a high of 98 cents in early March to close around 56 cents today?

I cannot see any negative news and the latest presentation looks solid?

 

[56gsa]

Re: SBM - St. Barbara Mines

seems SBM not so confident about gold price maintaining its momentum... from an article in the age

Eddy - it may just be pure coincidence but my post back on 9 March about how SBM were re-hedging (and at US$800) was around the time that the sp topped out... i haven't tried to track down how much they have hedged but if it is a significant amount then i presume this reduces the upside for SBM

they're due to release a revised resource estimate this month - hopefully the steady decline isn't related to the results of this estimate ...

cheers

 

[tradingforwealth]

Re: SBM - St. Barbara Mines

Eddy - it may just be pure coincidence but my post back on 9 March about how SBM were re-hedging (and at US$800) was around the time that the sp topped out... i haven't tried to track down how much they have hedged but if it is a significant amount then i presume this reduces the upside for SBM

they're due to release a revised resource estimate this month - hopefully the steady decline isn't related to the results of this estimate ...

cheers

when it was 98c the goldprice was over 1030us per ounce. Its just following the goldprice slide but a more exaggerated selling on SBM.

I don't want to make any predictions but i hope its up in 6months time and SBM delivers their promises

 

[eddyeagle]

Re: SBM - St. Barbara Mines

Just slightly more exaggerated!

Gold at $1030 is 17% above the current price of $880.

98 cents is 75% above 56 cents!

Yeah lets just hope they deliver and that the SP performance is better in the 2nd half of 2008 than it has been in the last three months!

 

[Uncle Festivus]

Re: SBM - St. Barbara Mines

Just slightly more exaggerated!

Gold at $1030 is 17% above the current price of $880.

98 cents is 75% above 56 cents!

Which could mean it's oversold? I am still waiting to see how much collateral damage will be inflicted from the weakness in the general market, but starting to get in the 'zone' for me. I will still wait for Gwalia to be proven though?

 

[solomon]

Re: SBM - St. Barbara Mines

Sometimes it helps just to tell someone you are hurting. I'm hurting on SBM, but it still seems to stack up on the fundamentals. Are there any chartists who could take a stab at support? To me it looks like no mans land ever since the break below the previous low.

 

[Uncle Festivus]

Re: SBM - St. Barbara Mines

I don't claim to be a chartist, but my view is that although it has broken a support area, there appears to be forming a descending wedge, which is bullish?

 

[Sean K]

Re: SBM - St. Barbara Mines

I don't claim to be a chartist, but my view is that although it has broken a support area, there appears to be forming a descending wedge, which is bullish?

Maybe, but you could just as easily draw that line through other parts of the S&R to get a pretty good downtrend channel UF without a wedge. Maybe just a wedge. You'd expect some pretty good support around that sideways move between 45-65 though.

 

[solomon]

Re: SBM - St. Barbara Mines

Thanks Uncle Festivus for the chart and analysis. Your chart confirms my gnawing concern that the technical support is anyone's guess ...

 

[solomon]

Re: SBM - St. Barbara Mines

Well the gold price action overnight could be the thing that kicks SBM in a positive direction. I'm hoping so

 

[Uncle Festivus]

Re: SBM - St. Barbara Mines

SBM kicking the tin again. Probably between 55-60c maybe?

St Barbara Limited – Request for 2 + 2 Trading Halt

St Barbara Limited (St Barbara) requests “back to back” trading halts for a
total of four (4) trading days pursuant to Listing Rule 17.1 to be implemented
immediately and announced through CAP this morning. For the purposes of
Listing Rule 17.1, St Barbara provides the following information:

a) As foreshadowed in St Barbara’s application to ASX for waivers on 2
June 2008, St Barbara is proposing to undertake a capital raising via
an accelerated entitlement offer. An announcement is expected to be
made today in this regard. The trading halts are required as St Barbara
will be making this announcement to the Exchange.

b) St Barbara requests that the trading halts continue until the opening of
trading on Monday 16 June 2008 unless St Barbara requests that the
trading halts be lifted before that time.

 

[oldblue]

Re: SBM - St. Barbara Mines

SBM kicking the tin again. Probably between 55-60c maybe?

No, 2 for 7 issue at 40c ! with a big institutional placement component.
It seems to be becoming the fashion for companies to raise new capital in this fashion, diluting shareholders' interests by attracting institutional money at a discount.
I guess that's the only way they can obtain underwriting but it's not encouraging for retail shareholders.

 

[Uncle Festivus]

Re: SBM - St. Barbara Mines

No, 2 for 7 issue at 40c ! with a big institutional placement component.
It seems to be becoming the fashion for companies to raise new capital in this fashion, diluting shareholders' interests by attracting institutional money at a discount.
I guess that's the only way they can obtain underwriting but it's not encouraging for retail shareholders.

Yep, jumped the gun a bit there. This explains a few things like why the SP was tanking for a while now. All along the insto's and those in the know (insiders) were offloading most likely? Still, it could be a good thing at 40c if the reserves are proven up and the update this month confirms it, as Ed has indicated. It's probably a better way than the interest rates they would have to pay otherwise, and the dilution shouldn't be detrimental if the reserves and production are to be ramped up as they have indicated?