stop whinging , page-5

Legume

I think you are being a bit harsh on SLR's management in regard to the sale of their share options. These were sold under very different market conditions than what applies today. Even the very conservative analyst at my brokers placed a value of $2.80-3.00/share on SLR back in mid 2012 and there were many other analysts who had higher valuations. That analyst recently placed a valuation of around 60 cents/share.

I suppose you could say that those options sales were based on a story that has not come true in terms of how they have developed their assets thus far. Perhaps they knew they would not reach the targets at Mt Monger before they sold, but I think they just got things wrong and do not have the capability to juggle all the competing projects at one time.

The key to fixing SLR is to get Mt Monger back on track to its supposed 300k ounce pa production target (from IGR and SLR's plants). That looks like requiring more capital to upgrade plant etc. Hence SLR will continue to be eating up capital for some years and one should not expect any dividends.

I actually think the take up by directors of $1.2m worth of shares is a positive for how SLR is perceived in the market place. The demonstration effect is important and will help keep the share price up to entice new buyers and have the SPP filled. I doubt that it had much impact (if any) on the decisions of fundies participating in the share placement.

Having said the above, I think SLR can now only be considered a spec trade rather than an investment. Accordingly if you believe there is going to be a pullback in the POG and goldies, one ought to consider selling down/out.

loki