SBM - St Barbara Limited

[noirua]

Re: SBM - St. Barbara Mines

In Sep08 Qtr report, company stated the following


Current 24hr spot Gold in A$1432 and as low as $910 (approx.) in last 6/12 mths.

SBM Cash Costs (Dec Qtr): Southern Cross: A$777, Leonora: $819 (combined total A$794),

kbxk508

Forecast costs for gold produced in the second half year is at AU$750 per troy ounce, down from AU$815.

 

[sinner]

Re: SBM - St. Barbara Mines

Sorry guys, please forgiveness! I mistakenly assumed cost was in USD. Now I will have to re-analyse my position and decide if I want back in, thanks a lot :

 

[cookiedude]

Re: SBM - St. Barbara Mines

Wonder who the institutional investors are? Anyway I sold half of my holdings today at 0.41 (for a reasonable profit) and will be holding on to the rest for now...

 

[eddyeagle]

Re: SBM - St. Barbara Mines

SBM is flying now the Macquarie Brakes are off!
FAt Prophets put out a 'buy on a pullback' on it yesterday which is a good sign.
It's come a long way from the dark days of < 20 cents!

 

[noirua]

Re: SBM - St. Barbara Mines

Took quite a hit on my SBM holding as I bought back in at 40.5 cents and thought what a great move at the time. Relief now as the dodgy World economy continues to decline and hopeful of more to come on this one.

 

[cookiedude]

Re: SBM - St. Barbara Mines

St Barbara Limited announces it has requested the ASX to halt trading in its shares so it can undertake a private placement of shares to sophisticated investors to raise between A$70 and A$75 million after expenses.

 

[nunthewiser]

Re: SBM - St. Barbara Mines

No mention of at what price this placement is at or am i missing something here ?......................

 

[VViCKiD]

Re: SBM - St. Barbara Mines

just when it starts to recover we have a share placement ...
they should 've learn their lesson from the last one...

 

[Uncle Festivus]

Re: SBM - St. Barbara Mines

The placement price will be determined by a book build being conducted
Cross Equities on a non-underwritten basis.

These things have a habit, we won't call it insider trading will we, where the preceding share price action gives a clue to what is coming. Just as the 40c issue was preceded by the sp tanking, this time it's well supported to the current 46c. I would guess that all this was known to the 'sophisticated investors' about the time the share price took off around the 30c mark?

Book building as we type no doubt, and they would have been sounding out the figure of $70M as achievable, and judging by recent raisings for goldies eg NCM it should be well supported? Have to wait till monday. Anyone have a match price?

Also interesting is that they have written down their holding in BDG just as it's sp get's a rocket under it.

 

[cookiedude]

Re: SBM - St. Barbara Mines

Personally I wouldn't mind knowing who or what this 'sophisticated investor' is / are... Definitely intriguing choice of words.

 

[Goldmann]

Re: SBM - St. Barbara Mines

just when it starts to recover we have a share placement ...
they should 've learn their lesson from the last one...

Could agree with you more and as Meatloaf said: you took the words right outta my mouth...

I spose they figure they will need money soon... better get it now while gold is heading up - even if it brings some short term SP pain... just wish i sold out the other day, and then could buy back in later.

 

[Sean K]

Re: SBM - St. Barbara Mines

Personally I wouldn't mind knowing who or what this 'sophisticated investor' is / are... Definitely intriguing choice of words.

This term is used all the time to indicate it's not open to the public and not just an institutional raising through banks. They'll be going through brokers to offer parcels to clients who will take a decent chunk. The sophisticated ones.

 

[Uncle Festivus]

Re: SBM - St. Barbara Mines

Could agree with you more and as Meatloaf said: you took the words right outta my mouth...

I spose they figure they will need money soon... better get it now while gold is heading up - even if it brings some short term SP pain... just wish i sold out the other day, and then could buy back in later.

It's to retire the convertible note 'debt', as per ann -

A buy-back of the convertible notes will reduce the refinancing risk associated with the potential redemption of some or all of the notes in June 2010 and reduces financing costs.
The placement price will be determined by a book build being conducted
by Southern Cross Equities on a non-underwritten basis.

SBM - Deutsche Bank rates the stock as Buy

BY BROKER NEWS - 17/02/2009

Risks remain but the analysts nevertheless believe time has come to upgrade this stock to Buy. They recently returned from a visit to the Gwalia Deeps operation and are now even more confident the operational risk profile is becoming "more normal".
Longer term, there is the issue of redemptions by holders of the convertible notes, but that's not due until June 2010 and the analysts believe that on current projections the company should have just enough cash in the kitty to stay out of troubles if all holders would decide to redeem. Target price lifted to $0.55 from $0.37 prior. Sector: Materials.
Target price is $0.55.Current Price is $0.39. Difference: $0.16 - (brackets indicate current price is over target). If SBM meets the Deutsche Bank target it will return approximately 29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

 

[peter g]

Re: SBM - St. Barbara Mines

Not as bad an outcome as i was expecting.

The placement was a 41 cents. only a 10% discount.

The momentum of SBM is very promising.

 

[Goldmann]

Re: SBM - St. Barbara Mines

and as expected SBM drops 10% in the first hour.

even gold bounding up towards $1000 wont stop this one sitting here now until March 3rd when the shares are eligible for trading.

 

[cookiedude]

Re: SBM - St. Barbara Mines

Decided to get out completely today (0.425) – might buy back in at a later stage. Good luck to those who are still holding.

 

[nunthewiser]

Re: SBM - St. Barbara Mines

Has removed ALL original capital in SBM . free holding now ALL that remains .can do as it pleases.....

 

[cookiedude]

Re: SBM - St. Barbara Mines

Looks like some profit taking happening overnight: POG down today & respectively SBM down also – Anyone tempted to buy in at these levels?

 

[peter g]

Re: SBM - St. Barbara Mines

Can someone please explain the activity and 12.5% increase on SBM today. I dont understand the announcement?

 

[cookiedude]

Re: SBM - St. Barbara Mines

Can someone please explain the activity and 12.5% increase on SBM today. I dont understand the announcement?

Doubt it has anything to do with the announcement?

POG rose sharply overnight USD60 or so to approximately USD950:

Silver and gold prices have a best friend, and it's Big Ben Bernanke. Yesterday the gold price had broken down, and was headed lower, but Ben engineered one of the last decade's most dramatic turnarounds. The gold price leapt nearly 60 bucks, silver 100 cents. Today's figures take yesterday's low closes into account, with the gold price up $69.60 to $958.30 and the silver price up to $13.60, up $1.55.

The upshot was the first half of a key reversal (break to a new low for the move with a higher close), confirmed today by higher closes. The gold price is headed for another shot at $1,000, and may pierce this time. The silver price needs to climb over this $13.50 mark, done today. Next barrier is $14.50..