SLR - Silver Lake Resources

[peter2]

You think SLR is fundamentally sound.
Price is entering the corrective fib buy zone. Gold is off a low.
Even I considered a bold reversal long in SBM today (this is another story).

 

[notting]

Been buying NCM, SBM, EVN, RRL, MLX and a little of this to start feeling it out, I know I'm weird.
Adding all those up my position is slightly positive at this bottoming juncture.
SLR behaves rather strangely. It's like it's trading 2 or 3 days behind all the others all the time.
Which gives you plenty of time to make for short term bets!!!(which isn't what I'm talking about this time)
Yes right now it's looking weak but it is a sound business and it will do me well, mark my words!!

 

[peter2]

I love your passion. Weird, no, more like cunning. We're each doing our thing and loving it. Seeing a day like today, makes me think about day trading the ASX, but day's like today are rare.
I'll put a few goldies in my reversal watch list (jic).

 

[leyy]

Got stopped out of SLR at 0.49 cents.


Agree, they had a good result. But the market is never really rational right?

will keep monitoring to see how this goes.

 

[aus_trader]

I'm going to be dripping a fortune into it as long as it remains weak and weakening.
One where I shall break all the rules and wait and wait and wait.
There will not be enough available when it turns so I will do it slowly this way!
THE DAY WILL COME!!!

I'm going to be on the side of caution since Gold has not shown a clear reversal from it's current downtrend. Once gold turns around SLR looks like a prime candidate amongst the gold stocks on the asx.

 

[aus_trader]

Got stopped out of SLR at 0.49 cents.


Agree, they had a good result. But the market is never really rational right?

will keep monitoring to see how this goes.

I'm doing the wait and see as mentioned above. Markets can stay irrational for years sometimes from my experience.

 

[greggles]

SLR has increased its Total Mineral Resources from 3,292,000 to 3,721,000 ounces of gold in the last 12 months.

 

[aus_trader]

SLR has increased its Total Mineral Resources from 3,292,000 to 3,721,000 ounces of gold in the last 12 months.

Looks like they won't be running out of Ounces any time soon, with nearly 4m Oz resource

​

 

[aus_trader]

Although a general article not specifically covering SLR, it's interesting to read that Aussie gold production is predicted to drop from 2020 onwards due to dwindling mine life of existing producers and that may be cause quality stocks to be in demand...

https://www.msn.com/en-au/money/fin...-will-be-in-demand/ar-BBMlJEk?ocid=spartandhp

 

[notting]

Fulfilling the dream -

I'm going to be dripping a fortune into it as long as it remains weak and weakening.
One where I shall break all the rules and wait and wait and wait.
There will not be enough available when it turns so I will do it slowly this way!
THE DAY WILL COME!!!

 

[peter2]

Thought you might be enjoying this rally in the goldies. Your timing was great with almost no downside since your notice of intent to dream big. Hopefully the party's only just starting.

 

[aus_trader]

Thought you might be enjoying this rally in the goldies. Your timing was great with almost no downside since your notice of intent to dream big. Hopefully the party's only just starting.

I hope so too Peter, Gold has been in a downtrend for quite a while and flattening out nicely now. So it could tick higher from here and looks like a tiny uptrend is starting...

Wish I had the confidence of notting to buy up big but I'm the sort of bloke who'll be sh#ting in the pants if that big stake started rolling downhill

At least I'm glad I took a 'small-stake' with Aurelia Metals Ltd(AMI) in my Speculative Stock Portfolio, which is one of the lowest cost miners to pull the shiny yellow metal out of the ground on ASX.

 

[notting]

Wish I had the confidence of notting to buy up big but I'm the sort of bloke who'll be sh#ting in the pants if that big stake started rolling downhill

It's not really a good idea 'in general' to do what I have done here.
What gave me confidence is this -
No.1 They have plenty of cash, cash flow and no debt.
2. EM currencies were all taking it excessively in the butt vs US $ whilst gold 'appeared to be weakening, not so for EM Goldies!
3. There is more than enough global argi bargi going on to ensure that there would at least be a solid spike in gold at some point, and counter to that if there were a relaxing of risk instead, then this would bring a weakening of the US$ (win win) vs US which is how these were being played(as if leveraged against the US$) despite the EM hedge.
4. I have traded this before and know how it tends to behave despite the fact the companies position has improved substantially recently.
5. It's charts and, as you pointed out, the behavior of Gold against the US$ appeared to be suggesting a bottom indicated a highly probable opportunity with vertually no risk!!
NOT TOO MUCH GUTS NEEDED IN THE LIGHT OF ALL THAT!!

 

[aus_trader]

It's not really a good idea 'in general' to do what I have done here.
What gave me confidence is this -
No.1 They have plenty of cash, cash flow and no debt.
2. EM currencies were all taking it excessively in the butt vs US $ whilst gold 'appeared to be weakening, not so for EM Goldies!
3. There is more than enough global argi bargi going on to ensure that there would at least be a solid spike in gold at some point, and counter to that if there were a relaxing of risk instead, then this would bring a weakening of the US$ (win win) vs US which is how these were being played(as if leveraged against the US$) despite the EM hedge.
4. I have traded this before and know how it tends to behave despite the fact the companies position has improved substantially recently.
5. It's charts and, as you pointed out, the behavior of Gold against the US$ appeared to be suggesting a bottom indicated a highly probable opportunity with vertually no risk!!
NOT TOO MUCH GUTS NEEDED IN THE LIGHT OF ALL THAT!!

Some good points supporting gold price. Cheers.

 

[barney]

It's not really a good idea 'in general' to do what I have done here.
What gave me confidence is this -
No.1 They have plenty of cash, cash flow and no debt.

Number 1 was enough for me but I got greedy hoping for low 40's ….. that looks pretty unlikely now.

One of the best valued Goldies on the ASX ……

SLR management have the Company in a good position …. if the POG starts to rally it could generate a lot of free cash.

I had PNR flagged as another potential SLR but then they go and raise capital at the lows when they didn't really need to ………. Such is life.

 

[greggles]

About a week ago SLR announced that diamond drilling results from the Daisy Complex continue to deliver outstanding intersections in multiple directions, with strong continuity and high-grades at established underground mining widths.

Significant new results at the Easter Hollows prospect, immediately to the west of the prolific Haoma West lodes, include:
• 0.45m @ 526 g/t
• 0.45m @ 43.4 g/t
• 1.64m @ 18.7 g/t
• 1.10m @ 16.0g/t
• 0.66m @ 17.9 g/t

The company believes that new lode structures have been discovered at Easter Hollows. Their FY19 exploration drill program has been updated to prioritise the Easter Hollows area and drilling is ongoing.

Highlights from extensional drilling at the Lower Prospect zone included:
• 2.72m @ 25.7 g/t Au
• 2.43m @ 25.7 g/t Au
• 0.28m @ 87.0 g/t Au
• 0.20m @ 70.5 g/t Au
• 1.89m @ 10.9 g/t Au
• 1.65m @ 7.48 g/t Au
• 3.55m @ 5.50 g/t Au

The drilling SLR have been doing in the current quarter has been increasing their reserves close by their current primary operations, lowering the cost of future production. Higher margins mean more free cash flow as long as the gold price doesn't head south from here. I remain bullish on SLR and think they are significantly undervalued at current prices.

 

[aus_trader]

About a week ago SLR announced that diamond drilling results from the Daisy Complex continue to deliver outstanding intersections in multiple directions, with strong continuity and high-grades at established underground mining widths.

Significant new results at the Easter Hollows prospect, immediately to the west of the prolific Haoma West lodes, include:
• 0.45m @ 526 g/t
• 0.45m @ 43.4 g/t
• 1.64m @ 18.7 g/t
• 1.10m @ 16.0g/t
• 0.66m @ 17.9 g/t

The company believes that new lode structures have been discovered at Easter Hollows. Their FY19 exploration drill program has been updated to prioritise the Easter Hollows area and drilling is ongoing.

Highlights from extensional drilling at the Lower Prospect zone included:
• 2.72m @ 25.7 g/t Au
• 2.43m @ 25.7 g/t Au
• 0.28m @ 87.0 g/t Au
• 0.20m @ 70.5 g/t Au
• 1.89m @ 10.9 g/t Au
• 1.65m @ 7.48 g/t Au
• 3.55m @ 5.50 g/t Au

The drilling SLR have been doing in the current quarter has been increasing their reserves close by their current primary operations, lowering the cost of future production. Higher margins mean more free cash flow as long as the gold price doesn't head south from here. I remain bullish on SLR and think they are significantly undervalued at current prices.

Some High grade intercepts, wow! Some of the widths are on the lower end, so maybe hitting narrow vein like structures. Just my opinion, I'm not a geologist.

 

[greggles]

Bullish gold price assisting SLR at the moment. If gold continues to rally we might see SLR taking on previous high of 65c in the near future. A break through resistance there would be very bullish.

Silver Lake Resources up 7.55% to 57c so far today.

 

[aus_trader]

Bullish gold price assisting SLR at the moment.

With gold price up I thought to look for quality gold stocks to put in my Speculative Stock Portfolio.

Just bought some SLR since AMI has taken quite a hit today with a lower than expected production this quarter. Will update the portfolio later today.

 

[greggles]

I was busy this week and missed this announcement from SLR on Wednesday.

Silver Lake Resources and Doray Minerals announce a merger to create a new multi-asset, mid-tier gold producer with the financial strength to become a leading growth focused gold company

Silver Lake Resources Limited (“Silver Lake”) (ASX: SLR) and Doray Minerals Limited (“Doray”) (ASX: DRM) are pleased to announce that they have entered into a binding Scheme Implementation Deed, under which the two companies will merge by way of a Doray Scheme of Arrangement (“Scheme”). The merger will combine two complementary West Australian gold operations to create a leading ASX mid-tier growth-focused gold producer (“Merged Group”).

Under the terms of the Scheme, each Doray Shareholder will receive 0.6772 Silver Lake shares for every Doray share held. As a result, shareholders of Silver Lake and Doray will own 62.7% and 37.3%, respectively, of the issued ordinary shares in the Merged Group. The Doray Board of Directors unanimously recommends that Doray Shareholders vote in favour of the Scheme. Each Doray Director also intends to vote all the shares that they hold in Doray in favour of the Scheme, in both instances in the absence of a superior proposal and subject to an Independent Expert opining that the Scheme is in the best interests of Doray Shareholders.

Luke Tonkin, Managing Director of Silver Lake, commented: “Silver Lake’s operating strategy has increased the value of our Mount Monger Gold Camp through a successful exploration and investment program over the past four years. The demonstrable success of this strategy has created a strong cash-generating business with a strong balance sheet allowing the business to grow both organically and inorganically. The combination of the complementary Silver Lake and Doray assets is being done for the right reasons at the right time and creates a stronger company in a low-risk jurisdiction with financial strength and further growth opportunities.”

Leigh Junk, Managing Director of Doray, commented: “This is a compelling transaction for Doray and provides the financial strength to fully unlock the value of Deflector. Both companies have recognised the challenges of being a significant producer in the gold business and this transaction puts us in a position to not only compete, but to be a sustainable and relevant player in the global gold industry. Doray has taken great care to find a partner with aligned growth ambitions and a strong operating culture, and Silver Lake fits that bill. This is an exciting time for Doray shareholders at a time when investors worldwide are focused on profitable, well-run gold producers with meaningful scale.”

I haven't gone through all the information in the three announcements released on Wednesday so I haven't yet been able to form an opinion about this merger and its impact on SLR and DRM shareholders. However, it's clearly big news for both companies.

Anyone else had a closer look at the details?