Ann: Appendix 4E and FY21 Annual Financial Report, page-8

SP closed at $1.36, up 2.64% from yesterday’s closing price. SLR demonstrated several extremely positive progress points in its FY21 earnings report, including:

• Gold production of 249,177 ounces gold equivalent with gold sales of 248,781 ounces and copper sales of 1,724 tonnes.
• Revenue for the year at $598 million from the sale sale of 255,573 ounces of gold equivalent, up from $563 million a year ago.
• 12% increase in normalised EBITDA to $290.8 million (FY20: $260.1 million), with a 6% increase in group EBITDA margin to 49%.6% increase in normalised Profit Before Tax (PBIT) to $141.3 million , up from $133.2 million in FY20.
• Available tax losses of $323.3 million at 30 June 2021, a change from $419.9 million in FY20.
• Statutory net profit after tax (NPAT) of $98.2 million.

SLR exhibited year-over-year growth of 12% in EBITDA and 6% in pre-tax profits for FY21. In addition, the company met its full-year guidance “notwithstanding the challenging conditions” in WA throughout FY21. The company also recognised sales of 248,781 ounces of gold which was at the upper range of guidance, as per its statement. As such, SLR/s cash and bullion increased by 23% to $330 million at 30 June, with no debt load. Moreover, capital expenditures came in at $172 million for the year, up from $106 million a year prior. The increase was underlined by additional mine developments at its Rothsay site and upgrades to its Deflector mill. Revenue also demonstrated a 6.2% increase over the year. SLR attributes the increase in revenue to “improved commodity prices” realised throughout the year. Furthermore, the group divested several non-core assets during the year. These included the Fingals and Rowe’s gold projects, as well as the Andy Well and Gnaweeda sites, where the group recognised a $7.5 million profit and a $3.7 million loss, respectively.

Management said:The Group’s operations over the last 12 months have been disrupted by COVID-19, however, the Company has adapted and mitigated, as far as practicable, the risks this infectious disease presents. Given the industry framework in which Silver Lake operates and the Company’s strong debt free balance sheet, Silver Lake will continue to actively pursue exploration, production and growth objectives, subject to the evolving and unforeseen impacts of COVID-19.Furthermore, regarding strategy and Silver Lake’s growth vision, it added:The Group’s short to medium term strategy is to deliver superior returns for shareholders by positioning Silver Lake as a leading gold stock on the ASX with a balanced portfolio of operations and growth projects. To achieve this strategic objective, the Company must become larger, longer life and lower cost.

FY22 guidance in the range of 235,000 – 255,000 ounces at an all-in sustaining cost (AISC) of $1,550 to $1,650/ounce.Furthermore, the company will advance progress at its Rothsay site, pushing the link drive to access the “North Decline” position for completion over the next year. In addition, Silver Lake estimates Rothsay to deliver a 10% increase in milled grade to “support a 10-20% increase in Deflector gold sales” in FY22. As a result, this ramp-up at Rothsay will result in a stockpile build “for the first time in history” at its Deflector operation.