SBM - St Barbara Limited

GoHardHomie · 10 June 2008

Re: SBM - St. Barbara Mines

Yep they're raising a fair whack of money - $100+ million from memory.

I never like to see my shareholding being diluted but i can sort of see the position they're in - need money but no one willing to lend it.

Here's hoping that they don't need to issue more shares for financing ever again (or when they do i hope it's at a multiple to its current sp)

And i do like how they have opted for a continuous halt, seems a smart way to negate some of the inevitable downdraft of the sp.

And my last hope (for this post anyways!) is that the sp reacts in the same style that Newcrest's did after their capital raising - up up and away!

Cheers to all

whitta27 · 12 June 2008

Re: SBM - St. Barbara Mines

heres a spreadsheet .
probably wrong but round about idea if u throw some figures into the cells in yellow.

whit

VViCKiD · 15 June 2008

Re: SBM - St. Barbara Mines

is anyone taking up the retail offer on this one ? if so, do you know how to pay by bpay ? it doesn't really mention it in the prospectus.

oldblue · 15 June 2008

Re: SBM - St. Barbara Mines

whitta27 said:
heres a spreadsheet .
probably wrong but round about idea if u throw some figures into the cells in yellow.

whit

Nice one, whitta!

Some interesting results. I tried some lower numbers in the P/E cell and could see the thinking behind today's apparently low SP.
I'll keep it on my watchlist though.

The Ferret · 16 June 2008

Re: SBM - St. Barbara Mines

This is BS.... smacked down to 38 cents in early trade.....

I knew it would take a hit when trading resumed... but this heavy??? Man...

explod · 16 June 2008

Re: SBM - St. Barbara Mines

So who is going to take up thier entitlement when one can buy them on market at 38cents today. Opportunity for the big boys here. My holding is only small but it hurts.

saichuen · 16 June 2008

Re: SBM - St. Barbara Mines

explod said:
So who is going to take up thier entitlement when one can buy them on market at 38cents today. Opportunity for the big boys here. My holding is only small but it hurts.

Good point and that is exactly what I did. I have added more to my position at current price. Nice!

Ashsaege · 16 June 2008

Re: SBM - St. Barbara Mines

saichuen said:
Good point and that is exactly what I did. I have added more to my position at current price. Nice!

Yeh my portfolio is hurting at the moment, but a great time to pick up some more! I wander who would be selling out at the moment...

prawn_86 · 16 June 2008

Re: SBM - St. Barbara Mines

Tell me guys, why is now such a good time to pick more up?

Whats to say it wont go lower?

The last few posts have provided no analysis at all, and could be considered low content. Please provide reasonings for your opinions...

Uncle Festivus · 16 June 2008

Re: SBM - St. Barbara Mines

Ouch - good bye weak hands - backing the truck up

nick2fish · 16 June 2008

Re: SBM - St. Barbara Mines

I as well was somewhat shocked and dismayed at what I saw this morning. As an entitlement participant I always thought 2 for 7 wasn't going to be enough for me .... but with a nice little top up today I think it will be

Sean K · 16 June 2008

Re: SBM - St. Barbara Mines

Uncle Festivus said:
Ouch - good bye weak hands - backing the truck up

LOL UF. Might be a good move on what looks to be fear and panick.

Got an objective reason as to why it's been sold off?

Just panick? Fear? Uncertainty?

Must remind myself of a classic quote:

"The market can stay irrational longer than you can stay solvent", or words to that effect.

Good luck! Truly.

Uncle Festivus · 16 June 2008

Re: SBM - St. Barbara Mines

kennas said:
LOL UF. Might be a good move on what looks to be fear and panick.

Got an objective reason as to why it's been sold off?

Just panick? Fear? Uncertainty?

Must remind myself of a classic quote:

"The market can stay irrational longer than you can stay solvent", or words to that effect.

Good luck! Truly.

Look at it this way - it's fully underwritten @ 40c, and those who are selling don't think it will go above 40c EVER again??? or panic selling or like cash better??? who knows, who cares?

It's not as if there's been a drastic production down grade to go hand in hand with the SP sell off, in fact the funds are going to be used for a dramatic UPGRADE if I have read it correctly.

This is as typical as you get, the oversold over reaction. If this SP isn't attractive to the punters then it's simple - don't buy it. I can see very good value at this price, based on the data available. FWIW ?

Sean K · 16 June 2008

Re: SBM - St. Barbara Mines

Uncle Festivus said:
This is as typical as you get, the oversold over reaction. If this SP isn't attractive to the punters then it's simple - don't buy it. I can see very good value at this price, based on the data available. FWIW ?

I agree, oversold, but I just can't help wondering sometimes when a stock tanks like this. I suppose the odds are an overreation and those buying on this fear will be rewarded.

Can't help think back to BDG though....eeeek!

Not saying they have similar projects, I just remember us ranting about the fundamentals and value all the way from $1.00 to 30c. On top of a capital raising around 80c? to institutions etc...

Hopefully SBM is a completely different kettle of fish!

explod · 16 June 2008

Re: SBM - St. Barbara Mines

The point I was trying to hint at earlier is that at this price they may not get enough takers on the new issue. That banks at the moment dont' want anymore. OK to have the gold in the ground but you have to get it out. A takeover is what will loom large now and some of the bigger Co.s. are hungry for the stuff in the ground.

nick2fish · 16 June 2008

Re: SBM - St. Barbara Mines

explod said:
The point I was trying to hint at earlier is that at this price they may not get enough takers on the new issue. That banks at the moment dont' want anymore. OK to have the gold in the ground but you have to get it out. A takeover is what will loom large now and some of the bigger Co.s. are hungry for the stuff in the ground.

The question should be asked what is the price of a mining company that produces over 200k ounces per year ,certainly over 0.38c I would suggest IMO.(dependent of existing debt arrangements and gold price)
That is without the success of their fund raising's.
As I see it they are capital raising to fast track production capabilities resulting in a dramatic increase in gold produced. It is not to start up production or fund further exploration. Dilution should be compensated by sp re-rating given higher production. Takeover ?...bring it on I say

Uncle Festivus · 16 June 2008

Re: SBM - St. Barbara Mines

explod said:
The point I was trying to hint at earlier is that at this price they may not get enough takers on the new issue. That banks at the moment dont' want anymore. OK to have the gold in the ground but you have to get it out. A takeover is what will loom large now and some of the bigger Co.s. are hungry for the stuff in the ground.

Explod, the Offer is fully underwritten by Macquarie Capital Advisers Limited.

A takeover? Not that I have to convince you, but what value is a 10M oz resource??? 2.3Moz reserves, 300koz production for the next financial year, targeting 1Moz production by 2010 (which isn't that far away now) - going for 38c today? Is there a more compelling gold story going round? Subject to the POG of course .

Sean K · 16 June 2008

Re: SBM - St. Barbara Mines

Gents, we're all well above calling sp's as an indication of valuation, and in comparison to other stocks. Perhaps you might like to spalsh up a market cap? Before the offer they had about 800m on issue at @ .40 = $330m ish. How many more shares are they issuing in total which will dilute this value to ?? One thing is for certain though, their MC to oz au is getting pretty compelling. On the above figures (no raising) it's about $39 an oz, which for a producer is very low. Can you adjust the figures for a current MC to oz au at the projective shares on issue to current sp to current jorc? What's the value look like then?

oldblue · 16 June 2008

Re: SBM - St. Barbara Mines

I would think the bad news from MON coming at this time is having an effect on the SBM SP. It doesn't help seeing another attempt to reactivate a mine fail, or at least be put on hold, when SBM is in the process of doing just that. The wobbly gold price isn't helping either when the company is looking to raise capital.
Not surprising that the SP is under pressure but the extent to which it is, is.

Disc: Not holding, but interested.

nioka · 16 June 2008

Re: SBM - St. Barbara Mines

SBM have gone "ex rights". Anyone with rights to buy at 40c can still profit by selling at todays 38c if they are making a loss on the ones they sell. Tax losses are probable if the shares had been bought at the higher prices. It is normal for there to be a rush of selling causing a drop in price after the shares go ex rights.
I would expect the price to improve from the 38c mark very quickly, maybe even today. On this assumption I have had a dabble in SBM while it is at these prices. Even though it is a week since the record date I suspect this is still the major cause for the drop although there are most likely other factors. June is a month where strange things happen.

SBM - St Barbara Limited

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