MACQUARIE RATES SLR AS OUTPERFORM, page-258

Just wait for the quartely/half yearly folks. They are well in the money on their latest large run of hedging and despite the fire issues in Canada the Australian operations have been firing along. Deflector grades for the quarter are up, Mt Magnet is still firing along meaning plenty of high margin ounces being sold. No nonsensical SBM purchase means the cash is still in the bank - Luke and the boys are quietly getting on with it.

Len the BusDev man is always on the lookout for a good buy. SBM wasn't it but he'll find something if it makes sense.

Don't listen to all the noise. Gold price has stabilised in AUD terms IMO and will likely trend higher over the course of the year as inflation issues remain for a little longer in the US and Aus, not to mention Europe. China is looking to get their economy moving with more stimulus and they are buying plenty of gold to hedge their massive foreign currency reserves.

SLR will end the year with $300m+ in the bank a a very nice looking next 6 months.