Valuation and SWOT Analysis SLR, page-2

Brian

A couple of points:

1) you forgot to mention that SLR has investments valued at $8.1 million at June 30. This would decrease their EV by the same amount assuming the investment is relatively liquid.
2) Reserves are not stagnant - they have risen by 160,000 ounces in the two years to June 18 from 366,000 to 526,000 ounces a rise of 30% in two years despite depletion - a great effort. It's worth noting that discoveries at Daisy North, Karone and Santa in the last 8 months are not included in those reserves so expect further increases.
3) Production has grown a little but cash and bullion has grown from $44 million in Dec 2016 to $110 million in the 7 quarters to Sep 18. Another great result in my view. What would you rather - a company that grew ounces produced or grew its cash balance - there's no point in growing ounces if you can't increase cash - look at RMS - its increased production to 200k ounces but its cash balance has remained relatively stagnant whilst SLR's balance has grown (the recent discovery at Shannon by RMS may change that)
4) It's worth noting that as per page 7 of the last activity report, inventories moved by $11.4 million in the last quarter - in other words they've sunk $11.4 million into mining ore which will only have to be milled going forward - so consider that $11.4 as a downpayment on the next 9 months which will lower ASIC and generate healthy margins going forward.
5) A third shallow underground mine is due to start up at Daisy North and then Santa so ASIC is expected to be lowered.

I do agree with you that SLR is a takeover target - but operationally the company has performed very well over the last two years and in my view is a bargain based on current performance, discoveries and cash.

GLTA/IMHO