SLR 0.00% $1.57 silver lake resources limited

the ridiculous prophecies, page-74

  1. 6,591 Posts.
    lightbulb Created with Sketch. 256
    The way I see it, SLR will probably average C3 costs of $1100/oz from here on.

    Murchison should generate about 70,000oz pa in the next financial year, while Mt Monger has the capacity to produce 200,000oz pa but in their bid to keep costs under wraps will probably be closer to the 150,000oz mark.

    That's 220,000oz produced. At an AUD POG of $1406/oz, about $67M in gross operational profit per annum. They're carrying about $20M in net debt that will be gradually repaid with this profit over the next few years. Accounting for approximately $10M offsite administration and $7M in debt and interest repayments per annum, the company should be capable of posting a profit before tax of $50Mpa assuming steady state conditions. NPAT of $35M, or earnings of 9.2c per share.

    The biggest driver on this is ofcourse the AUD POG. A 7% swing in either direction alters profits by over 40% either for the better or worse; and most importantly, SLR has the capacity to be bottom-line profitable with AUD POG all the way down to $1180/oz, or a USD equivalent of $1085/oz assuming current FOREX rates.
 
watchlist Created with Sketch. Add SLR (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.