Looks to me as if a large valuation is being placed on a small number of high grade ounces. When these ounces have been processed, if not replaced there may be a major setback to the profitability.The real 'quality ' recurring nature of its high earnings may therefore be suspect. Have a look at their jorc resourse inventory where they are showing at Daisy milano only 197800 tons , 40 gt for 257400 ounces nowhere else in the 1488000 ounces are there those grades. High grades have a mojor effect on profitability, so as the grade falls the odds are on the bonanza profitability falling. I would prefer to find another company with a different set up.
My posts are my own personal views and I am in no way suggesting investing in or disinvesting in the above share or financial instrument I also post for entertainment purposes ,and NO advice whatsoever is contained herein and or given.Everyone should seek independent professional advicer your help and research.
SLR Price at posting:
$1.76 Sentiment: None Disclosure: Not Held
