Australian (ASX) Stock Market Forum

SLR - Silver Lake Resources

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I'm not 100% down beat about SLR's capital raising as well. On one hand, I hate it when directors choose to dilute shareholder value. It also has the potential to arrest some really great gains we could have made otherwise. On the other... I've been monitoring the depth and the amount of buyers vs sellers has definitely rebounded from the capital raising announcement (take a look as well at how many people are willing to pay virtually at market). I'm always happy as well when a company pays off its debt and as oldblue has said, it's still really well positioned to take advantage of a run in the POG.

I anticipate that current prices reflect uncertainty as to what's happening with a number of things but it might spike if bombing in Syria begins. There is also the factor of the US Fed... along with a bunch of technical considerations.

Don't forget as well.. that at present SLR is ramping up their gold production and expect to do so for the next few years.

Happy trading.
 
G Gekko said:
I'm not 100% down beat about SLR's capital raising as well. On one hand, I hate it when directors choose to dilute shareholder value. It also has the potential to arrest some really great gains we could have made otherwise. On the other... I've been monitoring the depth and the amount of buyers vs sellers has definitely rebounded from the capital raising announcement (take a look as well at how many people are willing to pay virtually at market). I'm always happy as well when a company pays off its debt and as oldblue has said, it's still really well positioned to take advantage of a run in the POG.

I anticipate that current prices reflect uncertainty as to what's happening with a number of things but it might spike if bombing in Syria begins. There is also the factor of the US Fed... along with a bunch of technical considerations.

Don't forget as well.. that at present SLR is ramping up their gold production and expect to do so for the next few years.

Happy trading.
Click to expand...

There is no way around it the whole thing stinks and is completely unnecessary.

The fact that the POG may go up due to any number of factors doesn't negate the fact that they are diluting share holder value and that any offer which we might take at 85c will still not offset the gains we would have made had these extra shares not been offered.

I have a substantial holding with an average buy in of 77cents so not happy at all.
 
This is one of the better Goldies.
The price is insane even if it mothballs for 5 years this price is low.
 
notting said:
This is one of the better Goldies.
The price is insane even if it mothballs for 5 years this price is low.
Click to expand...

The destruction of the gold sector is absolutely amazing.

Capture.JPG

SLR ranks first amongst my gold stock list with a negative return of almost 30% in the last week. It also tops the table for negative return for the year.

Anyone knows that is their cost/oz position? I had something from last year that suggests US$800 but I highly doubt that is true.
 
I think it's around 915 and that's conservative.
If bit coins are worth $1000 due to lack of faith in currencies, as reported, gold should be $3500 oz.
Fashion's weird!
I'm not holding, yet, but there will be a day, not too far off, when you will be able to double your money in a week or two! I guarantee it!
 
notting said:
I think it's around 915 and that's conservative.
If bit coins are worth $1000 due to lack of faith in currencies, as reported, gold should be $3500 oz.
Fashion's weird!
I'm not holding, yet, but there will be a day, not too far off, when you will be able to double your money in a week or two! I guarantee it!
Click to expand...

According to the September quarterly report the "All-in Sustaining Costs" for FY14 YTD was AUD1919/oz for Murchison and AUD1098/oz for Mt Monger.
 
notting said:
I'm not holding, yet, but there will be a day, not too far off, when you will be able to double your money in a week or two! I guarantee it!
Click to expand...

Pretty much spot on today. Just over 2 weeks, I should have said within 14 trading days.
 
notting said:
What confidence are you talking about?
That trade is over.
Click to expand...

this morning's gap-up was a worry; together last night's dumping in Europe and the US, it kept me out of SLR.
Mind you, the trade between the two trendlines was pretty profitable. Mustn't be greedy :2twocents

SLR 03-01-14.gif
 
Intrinsic Value said:
SLR in a trading halt.

Looks like bad news is a coming.

I have been going to dump my SLR for the last week or two but didn't.

:banghead:
Click to expand...

Now they have fallen out of the ASX200 and price of gold rose strongly overnight SLR share price down on top of the 15 percent dilution of value via the institutional capital raising.

WTF
 
Intrinsic Value said:
Getting back close to my buy in price only a few cents off.

Hoping the upward momentum will continue.
Click to expand...
You're internet name Intrinsic Value suggests a "value" investor. This is a speculative play on a bottom bouncer so am I right in assuming you seek not "Intrinsic Value" but simply trade ASX shares?
 
The SLR price has been holding quite well since the fall that followed the capital raising and getting booted from the ASX 200. Turnover has been huge most probably as institutional investors unload their parcels. But there arent that many mid-tier gold miners in Australia so where are they going to park their funds if they want exposure to gold?
Turnover today was large again around 8 million - but an additional 24 million shares changed hands after the market closed at the days best price of around 47.5 cents.
If anyone knows why please share the mail?
 
Now not many have been chatting about this stock in quite some time. If you held onto it since the merge from IGR then you be as :banghead:as me.

Cant say whats going to happen from now on, it bottoming out at 0.155 recently is a far away from the price I came in at. Looking at dipping in again, just looking at what other peoples opinion is on the stock.
 
I'm holding a few, too.

If the "sustaining cost of production" at Mt Monger is still A$1098 then they should be able to battle on at today's gold price.

;)
 
Once thought of as the best small cap goldie heading for mid-cap, could have put your hat on that happening. Now SLR are struggling to make much profit from their mines and its shares have crashed. However, bad news is improving to not so bad after all and no doubts on survival now as the company struggles uphill to get back to the glory days.
New mines coming to the starter blocks have better grades and should have lower costs accordingly. One to keep your beady eyes on.
 
UBS rates SLR a Buy.

From FN Arena:

"UBS rates SLR as Buy (1) - December quarter production was ahead of UBS forecasts, as milled grade lifted to 4.0g/t from 3.2g/t. 2016 production guidance has been reiterated at 125-135,000 ozs.
Buy rating is retained based on valuation although the stock remains one of UBS lesser convictions in the Australian gold space. Target is lowered to 35c from 38c.
Target price is $0.35 Current Price is $0.22 Difference: $0.13 If SLR meets the UBS target it will return approximately 59% (excluding dividends, fees and charges). The company's fiscal year ends in June."
 

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