Our ALGO engine triggered a buy signal for SBM into yesterday’s ASX close at $3.62.
This “higher low” pattern is referenced to the intra-day low price of $3.27 posted December 13th.
In the company’s last report, SBM stated that production costs for Gold were revised to a record low of $907 per ounce, down 3 per cent compared to 2017.
This allowed the gold miner to achieve a record cash flow from operating activities of $303 million for FY 2018.
As such, SBM was able to repay all its debt and the company had almost $200 million cash in the bank after paying its first dividend since 1995.
Overnight losses in spot Gold may pressure the share price back to initial support at $3.50. We have a medium-term upside target in the $4.80 to $5.00 area.
Santa Barbara Limited