SBM - St Barbara Limited

[Miner]

Hello folks
With such a wonderful performance does any one can speculate why the price drove down so much today ? Ironically it was after the Denver presentation was published on ASX .
Does Mr Market know something ?
DNH - was an employee of Sons of Gwalia back in 1993 but world and mining has changed in Gwalia after 25 years.

 

[HelloU]

random thoughts that all will need fact checking as may be made up .......someone important sold a whole lot last week, they paid div money out of the bank about now, spending on peel (that may be totally made up dunno), some OS mob are big holders recently (not sure if investors or shorters).

DNH and not looking so all these are just coming from the corners of my head. Hopefully some are truthful and helpful - or just ignore (going to bed).

 

[HelloU]

random thoughts that all will need fact checking as may be made up .......someone important sold a whole lot last week, they paid div money out of the bank about now, spending on peel (that may be totally made up dunno), some OS mob are big holders recently (not sure if investors or shorters).

DNH and not looking so all these are just coming from the corners of my head. Hopefully some are truthful and helpful - or just ignore (going to bed).

yep vassie dumped $4M (cos he had to buy milk or something) so I reckon every one of those things prolly contributed .......maybe a little bounce post denver for brave DT peeps . Anyway, asleep now.

 

[Miner]

yep vassie dumped $4M (cos he had to buy milk or something) so I reckon every one of those things prolly contributed .......maybe a little bounce post denver for brave DT peeps . Anyway, asleep now.

Ha Ha.
Yes I read Vassie's sell and excuse . It was millions. Something might be there and you do not expect the CEO be so naive on his tax objectives. You have a good point there.
But SBM is also held heavily by financial institutions and alike.
Did Vassie alone contribute to 10% slump ? I know generally gold stocks slumped today. Let us see tomorrow market. Me DNH as well

 

[HelloU]

Ha Ha.
Yes I read Vassie's sell and excuse . It was millions. Something might be there and you do not expect the CEO be so naive on his tax objectives. You have a good point there.
But SBM is also held heavily by financial institutions and alike.
Did Vassie alone contribute to 10% slump ? I know generally gold stocks slumped today. Let us see tomorrow market. Me DNH as well

Would be no surprise if he has done an equity swap with the milk boss lady ...... prolly both did not get in early enough for finals footy tickets and just paying what the scalpers are asking. Nothing else is as good as getting corporate box at the footy.

(you would need to know who the milk lady is that did similar last week to get that, lol)

seriously ...is that OS bank a thing? ....but what I know is shorts are way down ...except last friday.

 

[Miner]

Would be no surprise if he has done an equity swap with the milk boss lady ...... prolly both did not get in early enough for finals footy tickets and just paying what the scalpers are asking. Nothing else is as good as getting corporate box at the footy.

(you would need to know who the milk lady is that did similar last week to get that, lol)

seriously ...is that OS bank a thing? ....but what I know is shorts are way down ...except last friday.

Mate
Let's watch the market today.
One point of observation on your comments regarding the milk lady. I am a bit concerned that you appeared to be feminist and prejudged Vassie's preference.
How did you or we know that it was not the milkman he spent millions

 

[HelloU]

Mate
Let's watch the market today.
One point of observation on your comments regarding the milk lady. I am a bit concerned that you appeared to be feminist and prejudged Vassie's preference.
How did you or we know that it was not the milkman he spent millions

I was actually more concerned that she is kiwi (is she a kiwi idk?)
Good luck to us all ....in everything ..... for ever .....
see ya

 

[barney]

Should be a good performer if the POG behaves a bit better.

 

[explod]

SBM is recovering from its recent drop. So with the Rising Aussie gold price I feel that it will do well in 2019

 

[Miner]

Another steller performance by SBM (my first mining employer in Australia back in 1993 when it was Sons of Gwalia with happy memory of Leonora Town of 1100 people, with previous residence being Melbourne) !
Any way, $357 M cash . Hopefully it will be nicely invested. Or could it be a catch for Anglo Ashanti who wants to quit Africa ? Just wild dream but with Sunrise only near by who knows .
I noticed, how market punished NST for $75 per oz AISC increase but did not wink with SBM AISC potentially going up by $15 per oz. I am not complaining however being a holder.

 

[Miner]

Good Morning all
Reading the report https://www.asx.com.au/asxpdf/20190322/pdf/443pjdsx5n8rx3.pdf
Couple of items I am reading and would like to know if you are reading same way!

1. Capital investment on Gwalia mine is required unless trucking option is continued as the first option.
2. Ventillation is a constraint to increase production - bottleneck (?)
3. Should there be an option other than trucking requires significant lead time for sure - hydraulic haulage engineering, procurement and implementation would need 12 months or so (IMO). That could be linked with additional ventillation due to heat load increase from hydraulic haulage equipment, interruption in production during construction.

So in short, SBM pricing would be on watch.
Holding for sure for long term.

 

[explod]

The chart currently indicates reasonable confidence. They have overcome a number of significant issues over the last few years, not without accompanying drops of course, but overall seem to be a determined productive company. Your analysis and understanding is much better than mine on this Miner but yes, see it as a hold also.

 

[Miner]

The chart currently indicates reasonable confidence. They have overcome a number of significant issues over the last few years, not without accompanying drops of course, but overall seem to be a determined productive company. Your analysis and understanding is much better than mine on this Miner but yes, see it as a hold also.

Thanks @explod for your prompt analysis with a chart.
Lets see what pans out .
I must confess tohave a strong weakness with Gwalia mine being the first gold mine I have every visited and worked in 1993 (26 years back) - used to call Sons of Gwalia. All part of sweet memoir however.

 

[kid hustlr]

Wow what an ugly day for SBM today currently down 30% the big spikes down continue

 

[Miner]

SBM - Perplexed case - since Sons of Gwalia's demise.
Now SBM is under trading halt. In March this year Market already punished after a very high capital investment story was published.
Then today acquisition of Atlantic Gold - I am not sure if this would be a really good story for the market to judge on Friday 17 May, as SBM has no previous working mines in Americas - slightly different ball game there. Would equity raise at $2.89 against the closing price of $ 3.32 be a good story? I am hoping - the market should get excited. SBM does need lots of cash to support their capital investment and this could be a win-win strategy.
https://www.asx.com.au/asxpdf/20190515/pdf/4453b6t26g497m.pdf
https://www.asx.com.au/asxpdf/20190515/pdf/4453d47vy550k6.pdf
If market welcomes this then the majority shareholder catalytic would be regretting to sell off 2% of its holding only a few days earlier of the trading halt
https://www.asx.com.au/asxpdf/20190506/pdf/444wn5781jcsxc.pdf

Disclaimer - A holder.
My head says SBM is going down, my heart (an ex SOG employee of good times) says - trust SBM management.

 

[Miner]

This morning my head won and heart fell down.
SBM has been thrashed and I noticed the report from creditsuisse was published on MF free forum, that SBM is sell .
Not a good day for me on ASX

 

[Trav.]

Small pullback on Friday may allow for a good entry Monday. On my watch list.

 

[Sean K]

Looks like they paid overs for the Canadian acquisition. By my reading they're paying $779m for 2.4m oz. Is this right? AZM has more gold in the ground in Ghana and their mc is about $10m. What am I missing there?

 

[explod]

Have been in FBM and followed them for a long time but they have come undone with a number of offshore pursuits.

One of the companies that taught me to stay home where I can check the oil outlet screw myself.

 

[Trav.]

well not for me this one. I was looking for a positive but gave up, the AISC is something that investors hone in on and SBM will not win too many friends here IMO.