33c-40c Spike Call, page-41

At $1528AUSounce (see realtime graph below) thats a profit from AISC of $342po x 125,000 ounces = $42M profit AUS on my maths, however this is at current rates and annual rates are obviously less but if this trend stays, SLR is substantially undervalued on EPS 148/42  = 3.5 EPS on current MC, earnings

Most EPS for gold stocks are around 10-15 EPS so SLR is 3x to 5x undervalued on MCap right now. Hence the rerate upswing. 33c to 39c is the range im looking for between the 100dma and 200dma. I cant see it stopping here at 30c, it has tested 30c twice and not broken out YET, when it does it will be a measured move (melt up) to 39c. The traders are trying to pick it off at 31c twice now due to the large shorts in SLR but they failed at 27c three times already and now they look like failing at 30c-31c also.

Top picking by hedgies/instos at 31c creates a new resistance level at this SP, it has to break 31c to get away from that point and the shorters next fight will be at 33c-35c to stop the run to 39c. stupid i know but thats how these hedgies/instos think to get their 1% cash bonus this week and burn the local investors and employees in the wastebasket whom they could not care less for.

Just wait till Tuesday to see if it can breakout past 33c its not far away.

PS -bilsto, KCN has suspended production in thailand for 30 days due to gov notice, looked like it was rebounding from its hole at 60c to 80c then to $1 but now if this is clears up and they restart then maybe trade lower then back up again on the rising GP. maybe death of a worker or change to safety procedures. Thailand doesnt normally do this to miners. i am surprised but decided long ago not to go into Asian/sth/nth american gold miners due to this very same risk, prefer OZ based gold miners anyday even african/ghanian at next best due to exchange rate bonuses, cheaper AISC and clarity.