SLR - Silver Lake Resources

[Telamelo]

SLR completes acquisition of Harte Gold in Canada what a great bargain they acquired on the cheap with everything included as about 1Moz resource @ 7.2g/t gold.

Harte has tremendous exploration potential/scope as well so this is a big win-win outcome for SLR shareholder's going forward imo

 

[mullokintyre]

SLR half yearly out.
Interesting that they have 270 mill of tax losses on their books.
If gold keeps going up the way it has recently, won't take too long to knock that off. So any divs they might undertake (unlikely seeing as they have said they will do share buybacks) would be without franking credits fir a while.
Despite spendong 100 mill on Harte acquisition, they still had a net cash increase of 40 mill for the half giving them 278 mill cash and bullion on hand.
The more I read about the Harte acquisition, the more I like it.
It is not a big producer at 53k ounces pA., but SLR believes that can be improved upon greatly, and the exploration drilling sems a little haphazard, so they reckon they can improve significantly on the resource figures of 1.6mill ounces grading at a tad over 10 g/t.
Still holding, but will take some profits if its gets above 1.88.
Mick

 

[Telamelo]

Silver Lake (ASX:SLR) has become the latest Australian gold miner to expand into North America after sealing its slow moving acquisition of embattled Canadian gold miner Harte Gold.

Silver Lake has acquired the Sugar Zone mine in Ontario through the US$102 million deal, which will also see Silver Lake close out Harte’s out of the money gold hedge for US$24.8m and replace it with a US$22m gold pre-pay for 11,928oz over the the next 12 months.

Sugar Zone has been in production since 2019 and contains a reserve of 797,000oz at 7.2g/t, delivering 51,453oz at 6.5g/t in 2021.

But its resource contains a higher grade of 10.9g/t and Silver Lake views the project as a window into a major exploration opportunity, saying it now holds “one of the largest exploration properties within a prolific metals district in Canada.”

Silver Lake made a $44.5m profit after tax in the first half of the 2022 financial year, down from $65.8m a year earlier due to larger depreciation and amortisation charges at Deflector.

EBITDA was relatively stable at $157.6m (compared to $160.1m in 2021), with gold equivalent sales down from 130,718oz in H1 2021 to 126,718oz in H1 2022.

SLR had $277.9m in cash at the bank as of December 31.

It has set guidance of 235,000-255,000oz gold and 600-1000t copper sales at all in sustaining costs of $1550-1650/oz in 2021-22.

 

[Telamelo]

Ord Minnett released a "buy recommendation" note with forecast target price of $2.30 this morning!

 

[Telamelo]

Another reputable newsletter recommendation upgrade released per excerpt below:

" Right now, Silver Lake Resources is a solid buy. If you don’t own this already, it’s a good time to add it to your portfolio.

Action to take: BUY Silver Lake Resources [SLR] shares up to $2 "

 

[Joe Blow]

Another reputable newsletter recommendation upgrade released per excerpt below:

" Right now, Silver Lake Resources is a solid buy. If you don’t own this already, it’s a good time to add it to your portfolio.

Action to take: BUY Silver Lake Resources [SLR] shares up to $2 "

Which newsletter is this? Please always cite the source of any third party analysis or recommendations.

 

[Telamelo]

Which newsletter is this? Please always cite the source of any third party analysis or recommendations.

Fat Tail Investment Research

 

[Joe Blow]

Fat Tail Investment Research

I just took a look at their website and they publish a number of different newsletters with different risk tolerances. Which one was this recommendation from?

 

[Telamelo]

I just took a look at their website and they publish a number of different newsletters with different risk tolerances. Which one was this recommendation from?

Rock Stock Insider

 

[finicky]

Yeah Rock Stock Advisor, Mar 3, part of Fat Tail stable. Brian Chu estimates value is higher but don't pay over $2.
Greg Canavan's Investments, also part of Fat Tail, still has a buy on it as at Mar 1 but recommended his intial buy back at 24/11/21 @ $1.70

 

[Garpal Gumnut]

Rock Stock Insider

So what makes them any better than Commsec refugees, now respected members of ASF, any better at predicting the future price of SLR ?

gg

 

[Telamelo]

Yeah Rock Stock Advisor, Mar 3, part of Fat Tail stable. Brian Chu estimates value is higher but don't pay over $2.
Greg Canavan's Investments, also part of Fat Tail, still has a buy on it as at Mar 1 but recommended his intial buy back at 24/11/21 @ $1.70

Oh that's good/handy to know.. thanks mate

 

[Ann]

Just playing with volume spikes again and watching what they do, I already posted this chart down on Skate's Dump it Here thread but I should add it to its own thread.

I am thinking there may be a fallback in SLR's price if indeed this most recent spike is heralding a top. We won't know for a few days of course but if I had planned to buy this I might wait. However, I had not planned to buy this as it is too far away from the 200dma for my taste. I am past buying into bubbles and sucking up big drawdowns, those days are passed for me! If I miss a rise, tough!

 

[rnr]

Just playing with volume spikes again and watching what they do, I already posted this chart down on Skate's Dump it Here thread but I should add it to its own thread.

I am thinking there may be a fallback in SLR's price if indeed this most recent spike is heralding a top. We won't know for a few days of course but if I had planned to buy this I might wait. However, I had not planned to buy this as it is too far away from the 200dma for my taste. I am past buying into bubbles and sucking up big drawdowns, those days are passed for me! If I miss a rise, tough!

Hi @Ann,

I get your line of thinking and your thoughts probably wouldn't change if you were aware that the latest
price action partially closed an 8.5¢ gap by 2.5¢.
Will it take a short breather before attempting to close the gap totally.

Cheers, Rob

 

[Ann]

I get your line of thinking and your thoughts probably wouldn't change if you were aware that the latest
price action partially closed an 8.5¢ gap by 2.5¢.
Will it take a short breather before attempting to close the gap totally.

Interesting to watch Rob, it may even try to close that gap you mentioned now with a major leap up to the 2.28 level, 10c wouldn't be too big a call, before it falls back. However, this volume stuff may just all turn out to be random BS which I always considered it to be over the years. Although the more I look, the more I see and what I am seeing is rather leaving me open-mouthed. I am seeing market tops being called and I kid you not I am seeing the bottom being called as well. It is most evident on US ETFs but it is also happening on the local ones as well. I want to watch for a bit longer before I trade using it with full confidence but crikey, there is something to it! I am not sure if it translates as reliably on these ordinary stocks, that is why I am watching so closely and putting it out. I have this overwhelming feeling there is a huge group of traders rolling their eyes at me saying, finally you have worked this out!

 

[qldfrog]

Interesting to watch Rob, it may even try to close that gap you mentioned now with a major leap up to the 2.28 level, 10c wouldn't be too big a call, before it falls back. However, this volume stuff may just all turn out to be random BS which I always considered it to be over the years. Although the more I look, the more I see and what I am seeing is rather leaving me open-mouthed. I am seeing market tops being called and I kid you not I am seeing the bottom being called as well. It is most evident on US ETFs but it is also happening on the local ones as well. I want to watch for a bit longer before I trade using it with full confidence but crikey, there is something to it! I am not sure if it translates as reliably on these ordinary stocks, that is why I am watching so closely and putting it out. I have this overwhelming feeling there is a huge group of traders rolling their eyes at me saying, finally you have worked this out!

Volume is key, i am sure.
I tried getting some volume inputs into my systems.
Several times , i thought:...got it..
but not sure yet...
I have to let time validate.
With systems, a lot of noise can influence trades ..and systems do not know about news, channels, etc so this is raw but volume and price actions are the key i am nearly certain.
You are probably on the good track @Ann...so do not hesitate to tell us the holy grail recipe if you find it ?

 

[finicky]

BtL Finance talking about gold, GDX, and a few gold stocks incl SLR.
He's optimistic but gives his levels lower at which he would be selling.

 

[mullokintyre]

Quarterly out today, not terribly outstanding.
Both Quarterly gold price and quarterly AISC only marginaly higher than years average.
Cash and bullion at 287 mill only 9 mill ahead of the December quarterly, after spending on the Harte acquisition, so not throwing out the free cash flow currently.
Heading to meet full year guidance.
However, they are unable/unwilling to provide Q4 operating performance, which seems a bit odd given their statement that they are "positioned" to meet full guidance for either the quarter or the next fin year.

YTD operating performance has Silver Lake positioned to meet FY22 guidance. However, the severe disruption caused by COVID-19 related labour shortages (which has intensified in March and April) and the related supply chain interruptions are expected to continue. Accordingly, Silver Lake is unable to predict Q4 operating performance with an acceptable level of confidence for stakeholders to rely on, and is withdrawing FY22 guidance.

The market hates uncertainty.
It may get marked down because of the above.
Perhaps they are looking for a share drop as they do their share buybacks.
Mick

 

[mullokintyre]

Quarterly out today, not terribly outstanding.
Both Quarterly gold price and quarterly AISC only marginaly higher than years average.
Cash and bullion at 287 mill only 9 mill ahead of the December quarterly, after spending on the Harte acquisition, so not throwing out the free cash flow currently.
Heading to meet full year guidance.
However, they are unable/unwilling to provide Q4 operating performance, which seems a bit odd given their statement that they are "positioned" to meet full guidance for either the quarter or the next fin year.

The market hates uncertainty.
It may get marked down because of the above.
Perhaps they are looking for a share drop as they do their share buybacks.
Mick

And right on cue, Mr Market is not happy.
Down 10% on the open, so I took the hint and bought a little more.
Mick

 

[CityIndex]

By withdrawing guidance, Silver Lake joins the recent theme seen across various mining companies citing uncertainties stemming from staffing pressures and supply chain disruptions.

It'll be interesting to see what the impact of this actually has when these companies release FY2022 results.