what bernanke has done, page-20

Another great post Chuk. When you look at it, in 9 mths we will be into 2013/14 and so much closer to the magic 400koz pa mark. I would not be surprised if SLR were even above your $5 ps estimate by then. The closer we get to that massive ramp up, the more the market will accept its inevitability. When you look at the exponential increase in cash-flow and NPAT, it will be trading at a very low pe to stay below $5 into 2013/14. Whichever way you look at it, a 400koz production at around A$1800 poz (US$1850 and 1.03 exchange) and even at $1000 poz total costs still gives a NPAT of $1.16ps or a SP of $10 at PE of 8.6. Now there are not too many growth stories like SLR trading at PE 8.8. Do your own maths but if you have a look at a representative sample of Aussie goldies they have much much higher PEs. As an example I ran some numbers for Aussie goldies through at close today (off Tradingroom.com) and its interesting to look at the average PE. Imagine SLR producing 400koz at its current PE or at the average of this lot? Remember too that when SLR reaches 400koz pa they will still have a fantastic pipeline of projects and prospective ground. The growth should keep on happening long after 2014.
MC $m PE
1 NCM 22,919 20.52
2 RRL 2,446 34.75
3 EVN 1,387 27.61
4 PRU 1,342 27.75
5 MML 1,201 24.83
6 RSG 1,182 10.10
7 SBM 1,069 5.47
8 KCN 888 11.18
9 CGX 861 144.89
10 SLR 834 24.20
11 OGC 773 32.49
12 AQG 692 23.71
13 BDR 678 -17.31
14 AGG 622 0.35
15 NST 528 20.41
16 SAR 265 13.48
17 IAU 255 -5.16
18 RMS 158 64.38

Ave 1-7 4506.5 21.57
Ave 2-7 1437.8 21.75
Ave 1-18 2116.7 25.75
SLR 834.0 24.42

If anyone has an alternative view of SLR's prospects please let us know.