december quarterly - profit of $14m, page-26

Denial

For those who understand the FA of SLR, this report does not upgrade things. I was expecting Mr Monger production to be higher than what had previously been projected because the last report provided a level of production consistent with the production upgrade and is more in line with the production potential of that area.

The negative is that AISC is actually higher for both Mt Monger and Murch than what was reported last quarter. The new average is around $80/ounce higher at around $1350/ounce. This does not include plant depreciation, which reduces reported profits, but not cashflow.

The story for Dec 2013 quarter is the same - Murch needs to be closed and Mt Monger should be expanded to something closer to what they had promised back in 2012.

Note how they took out tables made available in the previous quarter report and did not refer to their cash holding at end September to provide a comparison to December. These types of omissions are not good signs.

However, the market is looking for a goldie hero, and today it is SLR (and to a smaller extent SBM). There must be something about the letter S. Very nice bounce and congratulations on those who picked it.

loki