exfiles
I do not know how far SLR will drop. This market is giving companies that do not meet expectations (and even some that do, eg EVR today finally got its butt kicked after having a 11% run up last week) a big spanking.
What I have noticed with SLR is that at times of bad news or major market corrections, SLR can fall back a lot (went back to around $2.00 last year after being over $3.70). So this time I think it could still fall back more but perhaps not as far as $2.00.
In some ways SLR is now a different beast than when it last fell to $2.00. It is much closer to becoming a mid-tier producer and has IGR added to it. I think IGR will be a drag on the combined quarterly figures because it will not have solved its high cost issues, thereby driving up the average cost of production for the quarter.
I am expecting a strong bounce back by SLR at some stage, at least closer to $3.00.
It is only a matter of time (15-18 months) before Lord Les sorts out the integration issues and gets production up to 400k ounces pa, albeit at a somewhat higher cost of production than many think it will be. The cost offsets from the copper mining operations will only come into effect in 2015 or 2016 (from memory), but Mt Monger/Randalls costs/operations should be sorted out much sooner.
loki
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