Forecast costs for gold produced in the second half year is at AU$750 per troy ounce, down from AU$815.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
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?The placement price will be determined by a book build being conducted
Cross Equities on a non-underwritten basis.
just when it starts to recover we have a share placement ...
they should 've learn their lesson from the last one...
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.Personally I wouldn't mind knowing who or what this 'sophisticated investor' is / are... Definitely intriguing choice of words.
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.
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).
Can someone please explain the activity and 12.5% increase on SBM today. I dont understand the announcement?
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