SLR - Silver Lake Resources

Quarterly results out.
JUNE 2022 QUARTERLY ACTIVITIES REPORT
▪ Quarterly production of 65,844 ounces gold and 235 tonnes copper (66,947 ounces gold equivalent1 ) with sales of 66,819 ounces gold and 210 tonnes copper at an average sales price of A$2,528/oz and AISC of A$1,979/oz (including a A$82/oz non-cash inventory charge associated with the treatment of Mount Monger stockpiles)
▪ FY22 production of 251,887 ounces gold and 991 tonnes copper (256,538 ounces gold equivalent) with sales of 251,686 ounces gold and 907 tonnes copper at an average sales price of A$2,462/oz and AISC of A$1,756/oz
▪ Sales from the Western Australian operations (236,974 ounces gold and 907 tonnes copper at AISC of A$1,729/oz) were within the withdrawn FY22 guidance range with AISC marginally above the top end of the range Deflector
▪ Quarterly gold production of 31,150 ounces and 235 tonnes of copper (32,253 ounces gold equivalent) for record annual gold production of 124,602 ounces and 991 tonnes copper (129,253 ounces gold equivalent)
▪ Record quarterly gold sales of 33,455 ounces and 210 tonnes copper at an AISC of A$1,504/oz for record annual gold sales of 123,099 ounces and 907 tonnes copper at an AISC of A$1,392/oz Mount Monger
▪ Quarterly gold production of 23,058 ounces with sales of 23,528 ounces at an AISC of A$2,392/oz (including A$232/oz of non-cash inventory charge associated with the treatment of stockpiles) for FY22 production of 112,384 ounces and sales of 113,874 ounces at an AISC of A$2,077/oz Sugar Zone
▪ Quarterly gold production of 11,636 ounces with sales of 9,836 ounces at a AISC of A$2,606/oz for the first full quarter under Silver Lake ownership
▪ Implementation of Silver Lake’s operating structure and key capital projects to deliver improved productivity and cost reductions underway Exploration
▪ $4.2 million investment in exploration targeting infill, extension and discovery within proven mineralised corridors proximal to infrastructure Corporate and Finance
▪ Cash and bullion of $313.8 million at quarter end (which excludes $19.9 million of gold in circuit and concentrate on hand, at net realisable value) reflects an underlying2 $29.0 million cash build during the quarter Outlook
▪ FY23 group sales guidance of 260,000 to 290,000 ounces at an AISC of A$1,850 to A$2,050 per ounce (including $107 per ounce in non-cash inventory charge associated with the treatment of stockpiles at Mount Monger). Midpoint of FY23 sales guidance represents an 8% year on year sales growth on an absolute basis and 7% growth on a sales per share basis


The thing that stands out is that one can see the AISC starting to get higher every year.
This past quarter saw the Harte acquistion losing money with an AISC of AUD$2606 for the quarter.
Harte is paid for, but they had better reduce the costs at Harte, because based on the AISC, the cost cutting program had better kick in quick smart or it will go the same way as Evolution's Red Lake purchase.
Has plenty of cash, question is what are they going to do with it besides do a share buyback.
Starting to lose a bit of faith in this one, and may look to reduce exposure.
Mick

Despite a “challenging” operating environment, Silver Lake Resources (SLR) has reported making good progress across its project portfolio over the September quarter.

For the three months to September 31, the company produced 59,935 ounces of gold and 273 tonnes of copper.

Silver Lake sold 58,794 ounces of gold and 246 tonnes of copper at an average gold sales price of A$2502 per ounce and all-in sustaining costs (AISC) of A$2052 per ounce.

W

noirua said:

Silver Lake Resources (ASX:SLR) reports "good progress" in September quarter despite operational challenges

Despite a "challenging" operating environment, Silver Lake Resources (ASX:SLR) has reported making good progress across its project portfolio over the September quarter.

themarketherald.com.au

Despite a “challenging” operating environment, Silver Lake Resources (SLR) has reported making good progress across its project portfolio over the September quarter.

For the three months to September 31, the company produced 59,935 ounces of gold and 273 tonnes of copper.

Silver Lake sold 58,794 ounces of gold and 246 tonnes of copper at an average gold sales price of A$2502 per ounce and all-in sustaining costs (AISC) of A$2052 per ounce.

Click to expand...

Highlights why so many OZ goldies have been crunched.
Those AISC figures are, excuse the pun, unsustainable.
The costs are only going one way.
Mick

Silver Lake Resources board has cancelled its planned investor meeting this week.
According to Evil Murdoch Press , its a sign that they are about to walk away from the SBM takeover deal.

Royal Bank of Canada was arranging meetings with Silver Lake investors to be held this week, with various executives of the company over in Australia this month for the Macquarie Australia Conference that was held earlier.

Sources close to Silver Lake played down the cancellation of the meetings, saying it came with no clarity on the status of the deal.

Raleigh Finlayson’s Genesis Minerals told the market on Monday that it would accelerate an earlier agreed deferred payment and added an extra five million of its own shares into the offer, adding up to about $6.2m.

Previously, Genesis Minerals was offering a further 52.2 million shares to St Barbara only when its Tower Hill deposit produces its first ore.

Genesis Mineral’s share price on Monday closed at $1.26.

One view is that a motivating factor for Silver Lake to make a proposal for the company is to force its rival Genesis Minerals pay more money.

While Silver Lake’s offer is worth more than that on the table for Genesis Minerals, the Genesis Minerals deal provides more cash ($370m), and is more sought after from the target at the time it remains under pressure from its lenders, with the end of the June 30 financial year looming, which is significant when it comes to its loan repayments.

Some institutional investors have shares in Silver Lake and Genesis Minerals and believe a deal from the latter is preferable because of various reasons, including the synergistic benefits.

Click to expand...

Given the way the SLR share price has shot up today, perhaps investors may be a tad relieved if SLR does walk away.
Mick

mullokintyre said:

Silver Lake Resources board has cancelled its planned investor meeting this week.
According to Evil Murdoch Press , its a sign that they are about to walk away from the SBM takeover deal.

Given the way the SLR share price has shot up today, perhaps investors may be a tad relieved if SLR does walk away.
Mick

Click to expand...

Well, the Evil Murdoch Press got it all wrong, as they have admitted today.
Silver Lake Resources has thrown another $44m on the table to try to force St Barbara’s directors to the negotiating table over the sale of the company’s Gwalia gold mine near Leonora.
The latest bid ramps up the pressure on St Barbara’s board, which has so far resisted offering Silver Lake access to its books as it closes on a June 20 shareholder vote on a previously agreed sale of the historic gold mine to Genesis Minerals. Silver Lake is now offering $370m cash and 327.1 million of its own shares – valued at $352m at Friday’s closing price of $1.075, for a total price of $722m.

That is an almost 16 per cent premium to the current value of Genesis’s bid for the Leonora assets, based on Genesis’s $1.235 closing price on Friday. It is also about a 10 per cent premium on the Genesis bid when including discounts for tax, transaction fees and other costs of breaking the previous deal.
The key issue for all three companies is whether that is enough of a premium to trigger the co-called “fiduciary out” clause in St Barbara’s agreement with Genesis, which allows the company to disregard the “no-talk” provisions of the deal and allow a superior bidder to peek inside the company’s books.

Previous offers from Silver Lake have been rebuffed by St Barbara as too small a premium to avoid the risk of Genesis walking away from the deal – putting the company at a significant risk of insolvency if Silver Lake then fails to submit a firm offer, and for putting the timetable of its deal with Genesis under threat, given the requirement for a two-week due diligence process.

Click to expand...

Be interesting to see how both co's perform on the open tomorrow.
Mick

In its meeting notice to shareholders, St Barbara warned that without a deal the company was likely to breach its banking covenants when they are tested on June 30. This will put the company at risk that its bankers may call in the bulk of its debts and send the company under, which would effectively wipe out its equity holders.

Click to expand...

Down 20 per cent to 89¢ after the company warned it was going to sell less gold in FY24; sales guidance for its Australian operations was 210,000 to 230,000 ounces at an all-in sustaining cost of $1850 to $2050 per ounce

Woof Woof.
Mick

mullokintyre said:

Woof Woof.
Mick

Click to expand...

Bowsie-wowsie!!

Dona Ferentes said:

Down 20 per cent to 89¢ after the company warned it was going to sell less gold in FY24; sales guidance for its Australian operations was 210,000 to 230,000 ounces at an all-in sustaining cost of $1850 to $2050 per ounce

Click to expand...

was tempted to throw in an order when i saw it @ 88 cents today but remembered why i ignored it before and kept adding to OZL as my main copper play and removed my finger from the trigger

will think overnight if 85 cents is a fair gamble .

But it seems SLR holders don't want Red 5 shares on the books.

SILVER LAKE ACQUIRES RED 5 SHARES

Silver Lake Resources Limited (“Silver Lake” or the “Company”) wishes to advise that it has acquired approximately 383 million shares in ASX listed gold producer, Red 5 Limited (“Red 5”).

The purchase represents approximately 11% of Red 5’s
issued capital.
The acquisition of the holding in Red 5 is considered a strategic investment. Red 5 owns the King of the Hills operation and has an established broader footprint in the Leonora district in Western Australia.



Watch this bounce back, maybe.

*****LOGIC BEHIND CHOICE OF FULL CALENDAR YEAR 2024 STOCK TIPPING COMPETITION*****

SLR has been on the radar for quite a while and performed very well since identified in weekly scans back towards the end of October, as shown in the chart below. With gold in reasonable demand and remaining firmly above USD$2000/oz and the trend for SLR appearing to retain bullish sentiment, along with a recent 50/200 day moving average (golden cross) indicator on the daily chart, it is suggested by the charts that SLR should continue in an upward trend and explains the logic for choice within the stock tipping competition. Further descriptions can also be obtained from recent episodes of the weekly video series of analyses of the Australian market, which includes analysis of SLR within (link below for the latest episode).

*****MONTHLY UPDATE FOR FULL CALENDAR YEAR 2024 STOCK TIPPING COMPETITION*****

January 2024 - It's been an interesting month for SLR, having dipped beneath the 10 and 30 day moving averages twice and testing the prior resistance area (now support) of $1.12. Both of these tests of support have been successful and we now see SLR re-testing former highs established at the end of December, with the share price well above both 10 and 30 day moving averages alongside decent momentum indicators in the DMI and RSI, as shown below in the chart.

As has been discussed during the weekly video updates for ASX Traders United, this stock was initially detected in scans back at the end of October, so those members acting upon chart suggestions back then would be sitting on a tidy profit from entries at about the even dollar level (obviously not financial advice - see disclaimer in the video). Should support at $1.12 not hold, the bullish trend could be considered nullified for decent profit.



Latest update of discussion:

it's a knockout

Silver Lake tumbled 13 per cent on news it was merging with Red 5 in a scheme of arrangement under which Red 5 will buy 100 per cent of Silver Lake shares. Red 5 reversed earlier losses to be unchanged.

IvoryWolf said:

*****MONTHLY UPDATE FOR FULL CALENDAR YEAR 2024 STOCK TIPPING COMPETITION*****

January 2024 - It's been an interesting month for SLR, having dipped beneath the 10 and 30 day moving averages twice and testing the prior resistance area (now support) of $1.12. Both of these tests of support have been successful and we now see SLR re-testing former highs established at the end of December, with the share price well above both 10 and 30 day moving averages alongside decent momentum indicators in the DMI and RSI, as shown below in the chart.

As has been discussed during the weekly video updates for ASX Traders United, this stock was initially detected in scans back at the end of October, so those members acting upon chart suggestions back then would be sitting on a tidy profit from entries at about the even dollar level (obviously not financial advice - see disclaimer in the video). Should support at $1.12 not hold, the bullish trend could be considered nullified for decent profit.

View attachment 169834

Latest update of discussion:

Click to expand...

Not sure what happens with this as your yearly stock pick.

Rules:

• If a stock is taken over it can be replaced. The exit price shall be taken to be the takeover price. The new stock must be nominated before the date the taken over stock ceases trading and the entry price of the new stock shall be taken to be the closing price on the day the taken over stock ceases trading.

Is this a takeover or a merger or that doesn't matter, @debtfree ?

Dona Ferentes said:

it's a knockout

Silver Lake tumbled 13 per cent on news it was merging with Red 5 in a scheme of arrangement under which Red 5 will buy 100 per cent of Silver Lake shares. Red 5 reversed earlier losses to be unchanged.

View attachment 170224

Click to expand...

Not sure why the market thinks this is bad for SLR. It can't be at a discount to yesterdays valuation, surely. Who has bought who?

-Each Silver Lake shareholder will receive 3.434 Red 5 shares for every Silver Lake share held
-Upon implementation of the transaction, Red 5 shareholders will own 51.7% of the merged entity and Silver Lake shareholders will own the remaining 48.3%

Sean K said:

Not sure what happens with this as your yearly stock pick.

Rules:

• If a stock is taken over it can be replaced. The exit price shall be taken to be the takeover price. The new stock must be nominated before the date the taken over stock ceases trading and the entry price of the new stock shall be taken to be the closing price on the day the taken over stock ceases trading.

Is this a takeover or a merger or that doesn't matter, @debtfree ?

Click to expand...

i am potentially in the same boat with QVE and to make it even more complex the merger is in shares

and that could open a mathematical Pandora's box

but first these deals need to go through

and will give @debtfree some time to consider the advice

Yeah, agreed - matter of wait and see - besides, SLR's share price appears to have recovered to a point of the former resistance area (now support) of $1.12 at the time of writing this with just under an hour of trade left in the day, so if it respects this line, wouldn't be surprised if the share price appreciates once again and bounces off here to the northside.

As @divs4ever said, "first these deals need to go through".

Sean K said:

Not sure what happens with this as your yearly stock pick.

Rules:

• If a stock is taken over it can be replaced. The exit price shall be taken to be the takeover price. The new stock must be nominated before the date the taken over stock ceases trading and the entry price of the new stock shall be taken to be the closing price on the day the taken over stock ceases trading.

Is this a takeover or a merger or that doesn't matter, @debtfree ?

Click to expand...

Well there were a few last year and no one told me that it was happening to their stock or even what date it was happening, another advantage of having to follow and update the threads.
The dates went by and it was too late to select a new stock so they kept the last price to the end of the year and missed the opportunity to grab a few more % on a new stock.

A merger or takeover shouldn't make any difference as there is value there. It's not as if it's gone to nothing in value.
I will get onto @peter2 as I think I remember him having to deal with a couple of them the year before last. Hopefully he can give me a few clues of what needs doing in the spreadsheet to overcome this.

Thanks for bringing this to my attention, @Sean K, @Dona Ferentes and @divs4ever.

***** MONTHLY UPDATE FOR FULL CALENDAR YEAR 2024 STOCK TIPPING COMPETITION - @debtfree *****

February 2024 - What a great start to the month it was for Silverlake Resources (SLR)! Well, the first two trading days of the month anyway... And then wham, flat on it's face, falling through the resistance area that was now acting as support at $1.12, as noted in the prior update above on 30th January.

As discussed in the weekly video for the week ending 9th February (link here and also below in the graphic), it was suggested that holders who had previously entered the trade noted on the charts back at the end of October consider closing-out, considering the firm close below 10 and 30 day moving averages, the close below the support level of $1.12 and new lower swing high formations occurring.