SURF, I'm sorry to say I'm disappointed in you: these posts show a keen, intuitive grasp of the obvious, I'm afraid! You usually do far better than that...
In the last year, SLR has become a gold producer, and has been rerated accordingly:
Their share price is up 442% in the last year. But what would you expect? In the last quarter, their gold sales were up 313% on their first quarter of production (6/08), their price realisation was up 49% in A$, so their revenue was up 516% on their first production quarter.
The secret? Build a good business and deliver what you promise! Compare a couple of gold producers: SLR to AXM (Apex), a turbo-hyped company with a raft of big reputations in its board and management. However, they have consistently OVERPROMISED and UNDERDELIVERED. The result? Despite the fact that AXM has now started producing, their shares are DOWN 75% from their 52-week high.
The lesson? UNDERPROMISE AND OVERDELIVER, SO THE RERATING WHEN YOU START PRODUCING PUTS A ROCKET UNDER THE STOCK. Pure promotion and hype don't create a sustainable winner, witness AXM vs SLR!
CQT Price at posting:
44.0¢ Sentiment: None Disclosure: Held
