SBM - St Barbara Limited

[nick2fish]

Re: SBM - St. Barbara Mines

.
Capital costs continue to be a problem at Gwalia Deeps.
Gwalia Deeps high grade commenced this quarter at a depth of 1,050 metres.

Noirua, I don't understand how capital costs can still be a problem at Gwalia Deeps. I work underground and know that most capital expenditure is used to access the ore body which in SBM's case has already happened. The costs of mining once there are more than compensated by higher grades. Please explain. Cheers

 

[noirua]

Re: SBM - St. Barbara Mines

Noirua, I don't understand how capital costs can still be a problem at Gwalia Deeps. I work underground and know that most capital expenditure is used to access the ore body which in SBM's case has already happened. The costs of mining once there are more than compensated by higher grades. Please explain. Cheers

Hi nick2fish, I understand that the Barden Decline is presently only at the first production level of 1,050 meters below surface levels, and is continuing further. Complimenting ore from Marvel Loch and Gwalia Deeps continues. Also complimenting Tower Hill with Gwalia Deeps.

 

[bankit]

Re: SBM - St. Barbara Mines

Hi All,
The market liked the news that a new CEO has been appointed this morning
http://www.stbarbara.com.au/uploads/tx_rlsortthis/081217_asxa_MD_CEO.pdf
though I still regard Eshuys as very competent and glad to see he will be retained as a consultant.

The outlook for SBM looks good and I feel it now has some catchup to be done and this should happen if gold continues upward.

Bankit

 

[noirua]

Re: SBM - St. Barbara Mines

An encouraging quarter from St Barbara announced today has helped the share price.
Production at Gwalia Deeps has risen 84% compared with the last quarter.

SBM expect production of 145,000 to 155,000 ounces in the second half compared with just 104,000oz in the first half.

Encouragingly costs have fallen from A$815 per ounce to A$750 per ounce.

A brighter light amongst the gloom.

 

[nick2fish]

Re: SBM - St. Barbara Mines

Cheers Noirua, Certainly is an improved quarterly and I am wondering if SBM has turned a corner. Renewed positive investor confidence would certainly ensure improved sp performance which has lagged behind overall gains in the gold sector.

Since 17/11/08 LGL up 58%, NCM up 50% and SGX up 53%

 

[eddyeagle]

Re: SBM - St. Barbara Mines

Great news!

With gold hovering around A$1300 – hopefully SBM can have a decent run going forward!

 

[ptony1948]

Re: SBM - St. Barbara Mines

Hello all. I bought SBM a couple of months ago on the strength of watching Peter Schiff on you tube. He predicts huge moves in gold price as usd is devalued. My question to other forumites is this. With so many shares on issue for sbm(1.8 billion last I checked) what kind of move in the gold price would have to happen to move sbm into the $1 to $2 range? Tony

 

[prawn_86]

Re: SBM - St. Barbara Mines

Hello all. I bought SBM a couple of months ago on the strength of watching Peter Schiff on you tube. He predicts huge moves in gold price as usd is devalued. My question to other forumites is this. With so many shares on issue for sbm(1.8 billion last I checked) what kind of move in the gold price would have to happen to move sbm into the $1 to $2 range? Tony

ptony,

a very basic analysis of your question:

for SBM to be on a PE of 10 at $1 per share they would need to be earning about $180 mill pa or $360 mill pa for a PE of 10 at $2 per share. Obviously there are numerous possibilities, but thats a starting point.

How much are they earning now? My understanding is the mine is relatively high cost and has difficult metallurgy

 

[paulchow2k]

Re: SBM - St. Barbara Mines

Interesting analysis. Friday's action shows price rejection @ 34c. so it's going to be interesting to watch next week's reaction.

Hi All,
The market liked the news that a new CEO has been appointed this morning
http://www.stbarbara.com.au/uploads/tx_rlsortthis/081217_asxa_MD_CEO.pdf
though I still regard Eshuys as very competent and glad to see he will be retained as a consultant.

The outlook for SBM looks good and I feel it now has some catchup to be done and this should happen if gold continues upward.

Bankit

 

[nunthewiser]

Re: SBM - St. Barbara Mines

Interesting analysis. Friday's action shows price rejection @ 34c. so it's going to be interesting to watch next week's reaction.

HI, are you the same "paul chow" that told commsec chat that the CBA intraday bounce was a short cover rally ?

paulchow2k
23/01/2009 15:42:23
Stock Analysis shorters have just covered their positions...

paulchow2k
23/01/2009 15:42:35
Stock Analysis on CBA

paulchow2k
23/01/2009 15:46:35
Stock Analysis Winston: Gaim should be fine... this afternoon. The pros are covering some of the short positions. so it shouldn't fall too much

 

[bankit]

Re: SBM - St. Barbara Mines

Hi All,
Brokers have started to take an interest in SBM at last with one predicting an initial price target of 46 cents.

Bankit

 

[Goldmann]

Re: SBM - St. Barbara Mines

can you say what brokers??? very interested to know that brokers are actually starting to recommend gold - alot of them dont seem to subscribe too the gold v USD inflation hedge theory...

 

[Sean K]

Re: SBM - St. Barbara Mines

can you say what brokers???

Yes, bankit, you really need to provide that information, with a direct quote and link as well. Not saying the target doesn't exist, we just need it for transparancy. Cheers.

 

[eddyeagle]

Re: SBM - St. Barbara Mines

From Bloomberg and all upgraded in the last week:

Patersons have a buy with price target 46c.
Macquarie have an outperform with price target 40c.
And GSJBW have a ‘sell’ with a price target of 40c.

Comparing the last two is quite amusing. Obviously a 20-30% gain from current prices is not enough for GSJBW to hold onto a stock!

 

[nunthewiser]

Re: SBM - St. Barbara Mines

all i can say is .let them ramp it , reccomend it,place a buy, place a sell , date the ceo,s daughter

whatever

getting exposure is what counts

i hold and biased so please take above comments in the one eyed view in which it is given in

 

[noirua]

Re: SBM - St. Barbara Mines

Costs in the second half have fallen to AU$750 per ounce with gold prices pushing past AU$1,350 an ounce. The final results will be based mostly on the US$ price and exchange rates during the period.

 

[bankit]

Re: SBM - St. Barbara Mines

Yes, bankit, you really need to provide that information, with a direct quote and link as well. Not saying the target doesn't exist, we just need it for transparancy. Cheers.

From Bloomberg and all upgraded in the last week:

Patersons have a buy with price target 46c.
Macquarie have an outperform with price target 40c.
And GSJBW have a ‘sell’ with a price target of 40c.

Comparing the last two is quite amusing. Obviously a 20-30% gain from current prices is not enough for GSJBW to hold onto a stock!

Hi eddyeagle,

Thanks for posting that info. I was going to let kennas wait a bit longer as I can't see the point in replying quickly to messages with that sort of tone of his.

Bankit

 

[nunthewiser]

Re: SBM - St. Barbara Mines

Hi eddyeagle,

Thanks for posting that info. I was going to let kennas wait a bit longer as I can't see the point in replying quickly to messages with that sort of tone of his.

Bankit

Um .i hold SBM ........ i also agree with kennas ...... ASF is a respected and good forum BECAUSE of requests such as kennas,s ... no baseless ramping that way........ easy to post in other forums .mr x said this and a broker said that but here we have to prove it ........

cuts out a lot of the bull that happens elswhere

 

[sinner]

Re: SBM - St. Barbara Mines

Um .i hold SBM ........ i also agree with kennas ...... ASF is a respected and good forum BECAUSE of requests such as kennas,s ... no baseless ramping that way........ easy to post in other forums .mr x said this and a broker said that but here we have to prove it ........

cuts out a lot of the bull that happens elswhere

Would also throw my support behind kennas request! The only reason I hang about is due to high quality posting guaranteed by the mods and experienced members who will not allow innacurate or incomplete information to be posted.

 

[nick2fish]

Re: SBM - St. Barbara Mines

You have my support as well and I hope that someone will be interested enough in the integrity of these forums to pull me up as well, if I ramp on.

I don't really give a sh**t about brokers opinion these days anyway cause the fact of the matter is that there is a lot of downward pressure on the SBM share price these days. With the gold price going up as it has, I would have thought the Sp might have touched 0.40c. They are really going to have to pull a rabbit out of their hat to convince investors to hope on board again and then they have the underwriting parcel handing over there heads.
Anyway I'm holding in a reluctant kinda way...

Cheers