I while back I checked the performance of Central Norseman gold in the 79/80 boom. 1976 it was priced at at 85c and by mid 1980 after I adjust for a stock split it topped at around $50. It paid significant dividends. It rose over 5000% Profit in year ended 30 June 1981 was $20million. ANZ made a bit over $100million the same year. ANZ made $5.6billion NPAT last year
I estimate its costs where under $100 and it was averaging around $400 for gold sales. For a couple of years it made a margin of $300 an ounce against a cost of $100
SLR will do the same. It will rise 5000% from its float price of 30c. It will make , for maybe one or two years a margin equal to 3 times its cost. Its profit will be 20% of the ANZ, whose profits will decline
you tell people this they think your nuts. It already happenned before, it will happen again
the price of nickel was $10 a pound in 1966 when WMC sank the silver lake shaft. Today the price of nickel is $8 a pound
Now you know why there was a nickel boom in the 1960's
gold was dead, $35 an ounce forget it, nickel was the glamour metal then and set WMC up for life . WMC previously had made big profits in gold as GMA at Morning Star and Norseman after WW2 which it reinvested in other metals
SLR is about to be set up for life, its already started reinvesting in other metals
SLR Price at posting:
$3.83 Sentiment: None Disclosure: Held
