SLR 1.97% $1.82 silver lake resources limited

Ann: 2017 Financial Year Results, page-120

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  1. 813 Posts.
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    SLR & PRU are no longer dancing partners.....not even from a long shot.
    Back in 2014- early 2016 there was some sort of co-relation......only price wise and nothing else......like buy one and sell other.
    But after PRU's acquisition of Amara Mining.......the whole dynamics has changed.
    My honest opinion is in the very very long run(3-4 years).....PRU will be a better stock compared to SLR.
    But I guess in the meantime, PRU is very very close to a cap raise and susceptible for dilution or more add-on debt. PRU is not making money currently and may won't make money for some time while it is going ahead with its expansion plan.
    SLR is good for now....making money...and will make money for few more years to come.....just does not have the potential to become a Billion dollar company as is(unless management embark on expansion plan which is highly unlikely, SLR has been there and got badly burnt) whereas if PRU management can pull it off then I can see PRU at a Billion+ market cap in 3-4 years time.

    Anyway, not much fun in the junior gold stocks. They don't go up when the gold price is up but certainly come down when gold is under pressure. The whole junior sector is crap at the moment.
    On weak days they sharpen the attack, some people will succumb under the pressure and sell.
    I am pretty much sick of it but still hanging on to my shares waiting for the eventual turnaround in the share price( the company has turned around a while ago)

    I still stick by my target price for SLR 55-60c by the end of this year.

    By the way, RMS is currently the true dancing partner for SLR.
    Both of these companies have very even metrics....similar production, similar margin, similar LOM, similar market cap, same jurisdiction. A lot of similarity within the two. In my dreams I have thought about SLR & RMS merger. If that happens the market cap of the combined entity can almost double.
    From 450 mill to 650-750 mill. Will become very attractive to institutional players. Both even have very similar substantial holders like Van Eck, Ruffer, Dimensional fund Advisors, Goldman Sachs, Oppenheimer, etc.
    But who will give up there good paying jobs. No one.

    So waiting...waiting...& waiting.
 
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