If you gathered up SLR, MML, PRU etc into one entity, it would be called a kennel cause they're all dogs, with static production levels, high AISC, repeated failures to live up to their hype, and over remunerated boards and management. The market is separating into dogs & foxes categories. Simplistic belief that a continuing gold price rise is inevitable and this alone will convert these dogs into foxes is wishful, magical thinking.
The gold price is going up in US$ when the US$ declines relative to other currencies, but history shows that buying interest wanes when gold gets expensive, and there are other worrying developments for the long term for gold. For instance, the rumour that the desperate WA government is considering an increased gold royalty will do great harm to marginal producers, and effect the safe haven perception of WA for gold investors.
The Indian government remains committed to modernising its financial sector and central to this will be attempts to limit gold imports and monetise the massive amounts of gold sitting in 'under the bed' tax havens.
As the big shorters of gold have unofficial backing by TPTB, a concerted attack on the gold price by the paper gold market is inevitable and indefensible.
So, SLR needs to perform on its merits and not rely on being the cleanest shirt in the laundry bag.
PS have a look at the top20 ..... the board have few shares (and those were given to them as part of over generous remuneration packages and bonuses - they have not bought on market ever, rather the previous MD who remains on the board has sold all or most of his shares received as bonuses before the SP crashed on his watch as MD) and the number of institutional investors has greatly diminished ..... and why not.
No increase in production promised, reserves small and not expanding, and entrenched high AISC .... so small profits, no SP growth, no dividends for the foreseeable future and high board & senior staff remuneration ... profitless prosperity and that's if the gold price remains elevated.
If SLR is so undervalued , why are the board & senior staff not buying ... why are they not out there promoting the company loudly and effectively .... to busy consolidating no doubt.
Why are they not buying ??? Are they sitting on market sensitive news ... discovered oil or Gina's coming on board or is there a 'gas leak' that has the potential for more SP havoc ??
PS .... look at company presentations for 2017 ... 1 , 2016 ... 3. Most of ASX announcements are about MGV or asset sales .... as performance remains 'unremarkable' !!
OMG Helen Keller would be more say more than the current SLR management.
SLR Price at posting:
44.5¢ Sentiment: Sell Disclosure: Held
