Think everyone here is a bit rough on SLR. - some positives/observations below:
- NPAT for SLR is close to being a meaningless number. This is is due to the company having large historical cap expenditure and so amortization/depreciation make up significant drags on NPAT. These line items are the reasons SLR pays no company tax also and perhaps why we don't see any dividends (as there are no franking credits available).
- the company has an enterprise value of circa $140m and generated $37m in cash last FY.
- part of the high forecast AISC is attributed to non-cash items, the result of processing existing stockpiles
- recent announcements regarding exploration have been very positive. It would be good though to get a firmer picture of where SLR will be in 3-6 years to support the SP.
- a common theme of complain on these boards is in regards to executive pay and its relation to similar sized companies on a market cap basis. On this I think it is better to equate between companies on a revenue basis and on this measure SLR doesn't look as bad.
SLR Price at posting:
49.0¢ Sentiment: Buy Disclosure: Held
