EGA holders should be really grateful for being taken over by SLR.
Without the SLR offer EGA will likely fall back below 20c.
EGA on its own would rarely get finance for a plant & mill. The reserves are too small to justify a standalone mill. Finance will be near to impossible.
Whereas SLR has the money and expertise to bring it to life.
Keeping all that in mind large shareholder Lion Selection Group including EGA Directors have recommended this takeover. Without this takeover there will be only dilution for EGA hodlers for years and years. Shareholders can't even trade and make money. Look at the volume and price prior to the takeover.Too low.
Right now SLR is trading below a fair value which is north of $1.20-1.30. But if the AUD gold price is to stay above $2000, then it will eventually be marked up higher. There was concerted effort last few weeks from funds to accumulate at lower price heading into last Friday's GDXJ Re-allocation & S & P rebalance.(promotion into ASX 200). It might carry on until the end of this month.
Luke Tonkin is a very good experienced miner/contractor. He is a very bad PR/Salesman though.
He is not a salesman type MD but a real miner.
Some don't like his style of operation but I don't care as long as the company makes money.
For me SLR has been fantastic. Unlike @MIStragic, I don't even want a dividend now. I like the company to continuously make profit, increase cash balance, increase it's production, resources & reserve via organic growth or merger/acquisitions. All is happening as we speak.
$1.20 to come soon. I think there will be a day when it will jump 10-15 cents in one session.
SLR is relatively cheap at $1.
SLR Price at posting:
$1.02 Sentiment: Buy Disclosure: Held
