gold in freefall.. how low slr monday?, page-87

Disco Stu

"I also saw a post on here saying +1000 costs. I thought if that's the case, why on earth are you in this stock. What retailer who didn't sell bucketloads of their product would live with a 33% markup."

It came from the horses mouth, ie SLR's latest quarterly report which said all in sustaining costs at Mt Monger were $1144/ounce - see page 3 at link

http://www.asx.com.au/asxpdf/20130422/pdf/42fcxzh3tdmbkt.pdf

The $1144 does not include depreciation and amortisation which is extra and is included as a cost in the profit and loss accounts.

To be fair to SLR they will reduce the $1144 figure as they progress the integration of IGR and achieve more cost savings. I also expect that going forward wage and construction costs will fall in the mining sector as it cools off from its boom phase.

I have been banging on about this issue here for around 12 months, and some posters took it the wrong way. It was the reason I sold out last year. Others were also aware of this issue and did offer some support to my views. Hopefully the debates I tried to generate got some people thinking a bit harder and they took evasive action as the POG dropped. However, there are always the die hard believers that will not listen and often go down with the sinking ship.


SLR is a highly leveraged play on the POG. SLR will run up very quickly if the POG recovers and looks like staying up.

loki