Ann: Reserve growth reshapes Silver Lake's portfolio, page-6

With 835 Koz, SLR is relatively short on reserves, even if the resource figure is good. The increased POG should allow the reserves figure to be moved up while the Deflector mine continues to reveal its potential. Notwithstanding all this, SLR keeps looking for additional proven reserves, as witness its current take-over bid for EGA. However, that bid is facing increasing resistance even in the face of the EGA directors recommending acceptance.
With an EV to Reserve valuation of $779/oz for SLR today, against EGA at $294/oz, SLR can well afford to increase its offer to EGA and still lower its reserves valuation closer to its peers. EGA has a reserves figure of 235 Koz and that would increase SLR's reserves by 28%. On top of that, SLR can send EGA's ore to the nearby Deflector processing plant and so the capital investment needed to put the proposed Rothesay mine in to commercial production should be minimised.