SBM -10.94%: the mid-cap gold company struggled today after writing down 2 assets at their half-year result. They announced an underlying loss of $8.66m, however, they also added a $420m impairment at Atlantic, and a $74m at Simberi, two assets they are looking to demerge from the group. Production issues plagued the company in the half, forcing guidance to be amended to the low end of prior production expectations, and the high end on costs. Talks are ongoing with peer Genesis (GMD) to merge their Leonora assets, a deal that still has a number of hurdles to complete and today’s result put pressure on a few caveats.
MM is neutral SBM, considering cutting from the Emerging Companies Portfolio
Add To Hit List
