SBM - St. Barbara Mines

[JTC]

Quote: Originally Posted by explod 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.

[Family_Guy]

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]

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.

[kennas]

Quote: Originally Posted by JTC 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!

[explod]

Quote: I DNH and no hard feelings Explod!

[oldskool]

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]

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]

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]

Quote: Originally Posted by oldskool 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.

[cookiedude]

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]

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]

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]

Quote: Originally Posted by eddyeagle 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!

[N1Spec]

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

[jman2007]

Quote: Originally Posted by N1Spec all will be revealed in August when the independent expert report/reccomendation on making their operations efficient will be announced.

[oldskool]

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]

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]

Quote: Originally Posted by refined silver 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.

[jman2007]

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]

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

Hopefully it finds some support at current levels!