SBM - St Barbara Limited

[noirua]

Re: SBM - St. Barbara Mines

A good chance of a breakout now on the news that SBM may bring the Tarmoola Mine back into production with 370,000 oz at 6g per tonne. The Gwalia mill could be used situated about 40km away at Gwalia, Leonora.
Price closed at 36.5c in heavy trading at 31,371,357 shares.

 

[VViCKiD]

Re: SBM - St. Barbara Mines

SBM performing another capital raising .. What does everyone think of this ? Good timing in light of high POG ?

 

[wbosher]

Re: SBM - St. Barbara Mines

I've never experienced a capital raising before in a stock that I held. I understand that the SP goes down due to the dilution effect, does it generally rebound fairly quickly or can this take quite some time?

 

[$20shoes]

Re: SBM - St. Barbara Mines

This mob should run the Good Friday Hospital Appeal. They're experts at drumming up money and not much else, esp everytime this stock gets a sniff. Coincidence..i think not. Speaking of a sniff, something stinks around here.

 

[noirua]

Re: SBM - St. Barbara Mines

After all the fund raising to play down debts SBM have held up well to close on Tuesday at 35cXE. The gold price rise, despite the Aussies strength, has been a factor to allow the company to make its move. Difficult to say whether St Barbara can march on with this overhang, so its more patience required here by the bucket load, me thinks.

 

[Supra]

Re: SBM - St. Barbara Mines

The Long suffering share holders in SBM have put up more cash to try to reduce SBM's debt. With the current high price of gold, it's about time the mines started to pay their way.

I worry SBM may meet a similar fate to the previous owners of these mines.
Sons of Gwalia went under, due to entirely different circumstances I know. I was one of the lucky holders of Sons of Gwalia, who got out before the collapse in 2004.

An interesting week coming up, with a correction in the gold price in $US & a drop in the value of the $A we may even see the gold price move up in $A terms. SBM will be very lucky to hold the mid 30 cent range.

 

[noirua]

Re: SBM - St. Barbara Mines

The Long suffering share holders in SBM have put up more cash to try to reduce SBM's debt. With the current high price of gold, it's about time the mines started to pay their way.

I worry SBM may meet a similar fate to the previous owners of these mines.
Sons of Gwalia went under, due to entirely different circumstances I know. I was one of the lucky holders of Sons of Gwalia, who got out before the collapse in 2004.

An interesting week coming up, with a correction in the gold price in $US & a drop in the value of the $A we may even see the gold price move up in $A terms. SBM will be very lucky to hold the mid 30 cent range.

Fair comment! Though the situation of St Barbara has improved in my view as the risk over all the borrowings on the loan book are markedly reduced.
As you say and infer, the collapse of SOG was due to selling gold forward and having to buy gold at higher prices to fulfill these forward deals, as the Gwalia Deeps mine proved too much for them.

Hopefully SBMs methods to reach gold up to 2,000 metres deep has proved more successful with access shafts from other mines and using processing plants at these mines.

I feel quite confident now, once the indigestion problems are over and providing gold prices hold, that St Barbara's situation for producing gold looks set fair.

 

[Supra]

Re: SBM - St. Barbara Mines

Thanks for you post noirua.

The Gwalia Deeps promise so much, but the development works require a considerable amount of money.

SBM have some very good mines with good grades, it's just the cost of the development that may hinder the company till the price of gold picks up in A$ terms. I don't think that point is far away. Then we may see SBM's SP reflect the quality of the mines.

 

[Sean K]

Re: SBM - St. Barbara Mines

I've been a long time critic of SBM because of some rather overoptomistic development and production guidance at the hands of old mate Ed, and high cash costs. Since the new boss has taken the helm it seems some sence of rationality has come about and they are making way.

14 Jan in Egoli news:

St Barbara on track to meet guidance

St Barbara Limited (SBM) reported that production was steady and in line with expectations over the last quarter. As a result the Aussie gold miner reaffirmed its guidance of achieving production of between 205,000 and 240,000 ounces at a cash operating cost of between $745 and $820 per ounce for the 2010 year.

The company said that in the fourth quarter the company produced 55,104 ounces of gold, with the gold being shipped at an average price of $1,210 per ounce.

Across its operations the company’s Leonora mine in Western Australia produced less gold at 25,043 vs 30,060 than its Southern Cross mine, though the gold was produced more cheaply.

The miner, which doesn’t have any gold or currency hedging, had reported cash of $167.6 million.

Cash costs will always be relatively high for them I suppose, but starting to hit some targets by the look.

Trading at just $22 an ounce. A quarter of some African explorers. Market still doesn't like them...

 

[Sean K]

Re: SBM - St. Barbara Mines

Any holders, or anyone care to speculate why SBM seems to be trading at a big discount for a producer, at around $24 an ounce.

Is it cash costs around $800? (LGL and NCM are under $400 I think.)
Risks associated with future production?
Life of mine?
Legacy distrust in management?

I mean, producting 250k pa ish is a pretty solid footing isn't it?

Many grass roots explorers are far more expensive.

 

[sptrawler]

Re: SBM - St. Barbara Mines

From memory aren't St Barbara using all their profits to try and develop the Gwalia deeps at Leonora. Which is a fairly long decline from the bottom of the Gwalia open cut. With this taking up any cash flow, investors may be staying away untill the mine starts paying a return to investors. This Gwalia deeps has been on the go for quite a long time. Anyway as I said it is only from memory I may be wrong.

 

[noirua]

Re: SBM - St. Barbara Mines

St Barbara moved forward 4c to 31c today following the CIU conference and presentation by the company's CEO. This followed the European Presentation last month. As the Gwalia Deeps mine is further developed gold production is expected to improve quickly.

 

[Sean K]

Re: SBM - St. Barbara Mines

St Barbara moved forward 4c to 31c today following the CIU conference and presentation by the company's CEO. This followed the European Presentation last month. As the Gwalia Deeps mine is further developed gold production is expected to improve quickly.

The move was due to the CIU conference and a presentation by the CEO and the EU pres last month and GW development? Huh? Nothing else occurred overnight to push it up?

 

[Justinbhtan]

Re: SBM - St. Barbara Mines

i think it is because of gold prices hitting a new high that pushed it up that day. lets hope that it will continue to go up haha.

 

[noirua]

Re: SBM - St. Barbara Mines

The move was due to the CIU conference and a presentation by the CEO and the EU pres last month and GW development? Huh? Nothing else occurred overnight to push it up?

SBM did in fact make debt arrangements to free up $22 million in cash, and obtained price protection set at $1,425oz for King of the Hills. Anyway, a move in SBM these days is a little encouraging - Good Luck

 

[noirua]

Re: SBM - St. Barbara Mines

St Barbara moved forward 4c to 31c today following the CIU conference and presentation by the company's CEO. This followed the European Presentation last month. As the Gwalia Deeps mine is further developed gold production is expected to improve quickly.

... and so St Barbara continues to improve. Debts are being dealt with and King of the Hills gold sold forward at a healthy $1,425 an ounce. That leaves for some price protection and the rest unhedged. At 37c close this weekend SBM are looking like an increasingly strong proposition.

 

[sptrawler]

Re: SBM - St. Barbara Mines

Maybe SBM has finally got the punters attention gold is the only metal that has consistently trended up over the last 12 months. A lot of people are losing confidence in the currency systems.

 

[noirua]

Re: SBM - St. Barbara Mines

Maybe SBM has finally got the punters attention gold is the only metal that has consistently trended up over the last 12 months. A lot of people are losing confidence in the currency systems.

Probably nothing once again as much can change before the start of trading. Bid is at 40c to buy 1,315,275 shares and offer at just 36.5c for 250,000 shares. SBM finished Wednesday at 37c.
Much may change but a large order is in the wings at the front of the grid at the start unless withdrawn.

 

[noirua]

Re: SBM - St. Barbara Mines

Still at the same price as mid-June and I've kinda put these in the third drawer down, yes there are six drawers. The higher gold price is looking good and appearing to look ready to head on to US$1,400 an ounce, me thinks.
Many are now wondering about future dividends, well I am anyway, and the company needs to get its act together a bit more on the profitability front.
Always thought of the company being taken over at some stage and there appears nothing in the price for that possibility, imho.

 

[sptrawler]

Re: SBM - St. Barbara Mines

It will be interesting to see how the share price holds up post the 1 for six share consolidation.