Valuation and SWOT Analysis SLR, page-7

I agree the DRM/SLR are cheap but I am not surprised that they are at a discount to the likes of SAR. SAR has a highly competent management (but CEO over paid) who have demonstrated their focus on increasing production whilst reducing AISC. SLR's AISC is too high (albeit SLR, with some justification, claim that capex others would not include in the AISC is in their's) and their board in tainted by the past. SLR have also spent a lot of time in the wilderness (i.e outside the ASX200/300) in speccie territory. In addition (unlike NST and DCN) management do not have "skin in the game", LD was largely given his shares and sold down from ~5m to 1m (now), no one else (apart from cool hand) has "skin in the game" on the SLR board. To his credit cool hand has put a small amount of his "hard earned" in SLR shares but mostly only holds what he got in performance rights. The market appears to rate production, production margin and AISC in that order as important. SLR production is 140/150k ozs (but will be ~240k ozs with DRM) but production margin and AISC still fall short of SAR (~350k/yr with target of 400k/yr). Both SAR and SLR suffered from the Van Eck GDXJ ETF fiasco last year which allowed speculators to "front run" both companies (NST benefited from this).