500000 oz milestone, page-215

"With a market cap of $200 million and a share price of 40 cents, SLR look overpriced.
A realistic market cap of $50 million at the current gold price equates to 10 cents per share."

A sp does not usually just reflect current year’s earnings. If it did so then any company expected to post a loss for the current year or next year would trade at zero and in SLR’s case 0 instead of 10c that you suggest. Reality is that the sp will reflect expected earnings over many years but obviously with periods of the sp overshooting both to the upside and downside. It will also reflect the value of its assets. At 10c and a mc of below $50mill there is no allowance for the $300mill plus value of the plant and equipment let alone the gold.

I have given up trying to predict the short term POG because I am convinced it is heavily manipulated. However I do know that when there is very close to a 100% view on any market direction as there seems to be for gold right now, then there is a good chance that the market is close to a turning point. In fact in decades of investing I have never seen this close to a consensus view on anything. It is remarkable. A lower POG seems a certainty based on that consensus but if there is one thing you can never count on in the market, it is a certain bet. I will repeat again though, none of this means I think gold stocks can’t go lower still- I just wouldn't be shorting or counting on it.