a little bit of thinking, page-12

Nevcop

You need to get your facts straight.

Check out the research reports on the Silverlake website.

Argonauts latest report released after the quarterly on 27 October is forecasting NPAT of $33m in FY 11 based on 90,000 oz of gold being produced. $11m was earnt in FY 10 when 60,000 oz were produced and the price of gold lower. Argonaut are forecasting NPAT of $55.6m in FY 12, based on 175,000 oz being produced.

EPS forecasts are therefore FY 11: 16.2; and FY 12: 27.4.

Means that at current price of $1.95, SLR is trading on an FY 11 p/e multiple of 12.0x and an FY 12 p/e multiple of 7.1x.


These multiples, together with SLR's EV/ Resource size, show SLR is undervalued when benchmarked against competitors- particularly since they don't incorporate the resource upgrade we are expecting at Magic and at discoveries in the Murchison.

To date, Silverlake has exceeded all analyst expectations as outlined in the AGM presentation.

The costs don't concern me that much when Australian price of gold is over $1,400..

Argonaut has a price target of $2.81.

So, I still maintain the share price fall seems odd.