I hope you got out at a profit.
Currently I am not happy holding this stock, but really don't think SLR is at a price to sell out.
The company fundamentally is in the best shape it has ever been. A million times better than the time that video I posted was made. The management style has changed from outspoken & aggressive to conservative & defensive. In fact they are so conservative that they don't even highlight the pros of SLR.
Approx 135K ounce producer.
AUD $ 275-350 clean margin per ounce.( Will get much higher from June 2018 onward)
AUD $ 80 million worth of ( cash, bullion and other listed investments)
A good amount of gold price hedge at AUD 1700.
No Bank DEBT.
4-5 years LOM as is and growing organically.
Highly prospective Mt. Monger tenement.
High probability & flexibility of some good quality acquisition or merger.
Enterprise value of 80-90 million only. Some explorers with no money to throw a staff Christmas lunch party are valued higher than that.
One should not make the mistake of comparing SLR to SBM, NST, EVN & RRL.
But if one compares SLR to RMS, BDR, PRU,RSG, MOY, DRM, BLK, PNR, TRY, MML.........from any aspect SLR does not look bad at all. The only one neck to neck is RMS. I like & hold both of them.
In the middle of all the doom & gloom, I have added to my position and am currently holding the second largest position in my SLR investing history. The only time I had a larger position then now was when the stock price was under 20c. I believe the market will give me a chance to sell above 50c and more.
From my back of envelope calculation, the company will have almost or over AUD 100 million by the end of 2018. I have sold most of my explorers and even reduced some junior producer which are not as ridiculously valued as SLR to add SLR.
I think this take down in price is to scare and frustrate lot of holders and get them to sell, of which the accumulators have done a fine job. We can never know for sure the movements of funds under 5%.
During this whole take down there was no announcement from Ruffer & Van Eck selling down. Although I have noticed a slight increase in Van Eck's position.
I suspect we are reaching the climax. It's a very important week with the US FED meeting, European Union meeting and the Bank of England meeting. Gold and gold stocks will remain under selling pressure till Thursday our time and will depend upon Mama Yellen's last speech and Uncle Draghi's speech for the rest of the week thereafter. It is also possible we might have seen the lows last Friday.
Overall, I am not happy with the share price, but I don't believe it is this management's fault. The share price is the price decided within buyers and sellers in the market. If every participant agreed with my view the share price would have been higher. Unfortunately there are very few who agree with me.
SLR Price at posting:
33.5¢ Sentiment: Buy Disclosure: Held
