SBM - St Barbara Limited

[JTLP]

Re: SBM - St. Barbara Mines

From memory also, I thought the average was much less than that. Each to his own of course but I think AU gold will soon be back to 1500 plus.

When time permits I will recheck it and post.

From today's quarterly:

Leonora + Southern Cross - Cast Cost = A$995 per oz

Lower than expected production at Leonora resulted in higher unit costs of A$1,027 per oz

Southern Cross cash operation cost of $977 per oz.

For the 2nd half of the FY SBM hope to lower costs to between $830 and $850 per oz. They would want to increase production in line with the 130,000 to 150,000oz forecast.

I DNH and no hard feelings Explod!

 

[Family_Guy]

Re: SBM - St. Barbara Mines

A real dog this stock, and my thoughts are it's become a risk stock. I know all stocks are risky, but this one has crossed the line. But i'm on with a small bet at 23c just in case it does drop further. I dont know much about this ceo wheather he is full of hot air or not, but obviously some issues with a production drop and cost increase.

 

[nick2fish]

Re: SBM - St. Barbara Mines

Agree totally and with production costs as stated, coupled with shares on issue numbering over the billion mark, I won't be revisiting this gold play, ever.

 

[Sean K]

Re: SBM - St. Barbara Mines

From today's quarterly:

Leonora + Southern Cross - Cast Cost = A$995 per oz

Lower than expected production at Leonora resulted in higher unit costs of A$1,027 per oz

Southern Cross cash operation cost of $977 per oz.

For the 2nd half of the FY SBM hope to lower costs to between $830 and $850 per oz. They would want to increase production in line with the 130,000 to 150,000oz forecast.

I DNH and no hard feelings Explod!

Cash costs of around $1000! Crikey! I mean, gold is probably going to stay above $750 an oz, and possibly go much higher once inflation explodes because of all this money being printed, but maybe not. No room for error here. Wonder how they are going to reduce cash costs from here. Surely it's as cheap as it's going to get to operate a mine right now? Yes, maybe risky play at the moment.

$1000!!

 

[explod]

Re: SBM - St. Barbara Mines

I DNH and no hard feelings Explod!

On the contrary JTLP thanks for your input, I did say "a punt" and pleasing to see the contributions for caution.

 

[oldskool]

Re: SBM - St. Barbara Mines

Clearly the results were abysmal. Why on earth one would want to punt on this dog when there are low cost goldies trading at ridiculous cheap levels. highest risk / reward ratio out there imo. production downgrade was not substantiated? why so little production ? once again, institutions had the inside mail on this and sold her down aggresively. Retail investors be very careful in buying.

 

[oldskool]

Re: SBM - St. Barbara Mines

absolute dog. this probably will collapse. pog will be equal to or less than cash costs. simply not sustainable. if the markets recover then gold will fall off. what a high risk play.

 

[Anthony Hosemans]

Re: SBM - St. Barbara Mines

Baillieus have put out a speculative buy on SBM recently, valuing it at between.36 and .69 cents. I have already traded them this year buying at .23 and selling at .39. and making a nice profit. Being a contrarian I rebought back in after the 6 cent drop on their recent announcement and am already up on that purchase. The costs for production of an ounce is over the top at the moment but i believe the new CEO knows what he is doing and costs will be reduced.This stock not necessarily for the faint hearted but there are buying opportunities every so often. Regards Kooka.

 

[Ruincity]

Re: SBM - St. Barbara Mines

absolute dog. this probably will collapse. pog will be equal to or less than cash costs. simply not sustainable. if the markets recover then gold will fall off. what a high risk play.

Good article on why this statement of yours regarding market recovery and gold "falling off" is very possibly built on nothing but speculation.. http://www.zealllc.com/2009/goldspx.htm
Some facts and history there worth your perusal.
I hold a small parcel of SBM and while I agree that they are a high risk play I am happy to follow this one up with stops in place.

 

[cookiedude]

Re: SBM - St. Barbara Mines

US Stocks took another smack in the jaw yesterday. The Dow dropped 106.41 to 8,362.70 and the S&P500 dropped 11.4 to 896.95. Dow may be beginning to roll over - if this is the case - expect POG to rise...

 

[oldskool]

Re: SBM - St. Barbara Mines

absurd. costs are far too high. clearly being sold down very aggressively. why on earth would one buy this ? there are so many other low cost producers. pog would have to break $2000 for this to be reweighted. maybe 2nd half of next year. ? fair comment ? maybe a parcel at 21 cents would be worthy of a punt. opinion experts welcome.

 

[eddyeagle]

Re: SBM - St. Barbara Mines

Is the share price of SBM ever going to increase?????

What a frustrating stock!

Maybe if gold gets to USD $1500 SBM might actually do something!

 

[jman2007]

Re: SBM - St. Barbara Mines

Is the share price of SBM ever going to increase?????

What a frustrating stock!

Maybe if gold gets to USD $1500 SBM might actually do something!

The last Quarterly was a bit of a tale of woe eddy,

Extremely high production costs for almost all of their operations, and the underground grade at Gwalia just isn't going to cut it at 4.8g/t. Although some suggestion that the ongoing development will eventually access the higher grade lodes. Interesting to see if they can get costs < $A900. If POG takes a dive, these guys are for the high jump.

 

[N1Spec]

Re: SBM - St. Barbara Mines

all will be revealed in August when the independent expert report/reccomendation on making their operations efficient will be announced.

 

[jman2007]

Re: SBM - St. Barbara Mines

all will be revealed in August when the independent expert report/reccomendation on making their operations efficient will be announced.

Two months can be a very long time between drinks in the mining industry N1Spec, and I'm not sure the market will grant them that much leniency. Hopefully the long-suffering shareholders will be given at least few updates between now and August, and not have some unforseen bombshell dropped on them out of the blue, which would be extremely damaging for the company.

 

[oldskool]

Re: SBM - St. Barbara Mines

Cost too high. Aus $ is rising. consequently SP will be squeezed somewhat. A good buy prolly in a month or so. Then sit it out until December when pog is towards $1200 oz. risky business. iron ore flavour of the month. not sure inflation is important until disinflation completes. people getting ahead of themselves imo. buyer beware.

 

[refined silver]

Re: SBM - St. Barbara Mines

Goldies with costs = to price of gold (POG) are highly leveraged both ways.

A producer with $700/oz costs when POG is AUD$1200 makes $500/oz. Gold goes up $100, they make $600/oz. 20% increase in profits.

A producer with costs of $1000/oz when Pog is $1200 makes $200/oz. If POG goes up $100, they make $300 profits or a 50% increase.

In my humble opinion SBM may be close to its lows.

 

[ndpjai]

Re: SBM - St. Barbara Mines

Goldies with costs = to price of gold (POG) are highly leveraged both ways.

A producer with $700/oz costs when POG is AUD$1200 makes $500/oz. Gold goes up $100, they make $600/oz. 20% increase in profits.

A producer with costs of $1000/oz when Pog is $1200 makes $200/oz. If POG goes up $100, they make $300 profits or a 50% increase.

In my humble opinion SBM may be close to its lows.

Hi

U r absolutely correct, i think it is close to its support levels. I hope there is some announcement from the company soon.

Cheers
Jai

 

[jman2007]

Re: SBM - St. Barbara Mines

Jeepers!

How on earth are SBM going to dig themselves out of this hole? Touched briefly on 19.5c today, and looks to have dropped through historic support levels during the last few weeks. It will be a massive ask to expect the incoming MD to make a material impact on the cost curve in such a short time, in fact it may have to be a 12-18 month mid-term plan. I'm not too sure tbh, just throwing some ideas out there.

Ultimately, it is probably the long haulage up the decline at Gwalia that is bleeding them dry, perhaps the answer to reducing costs at Gwalia may lie in the scheduling of the ore haulage.

 

[eddyeagle]

Re: SBM - St. Barbara Mines

The chart does not look good at all! Locked in a firm downtrend!

Hopefully it finds some support at current levels!