Ann: June 2020 Quarterly Activities Report and Guidance, page-8

That was quite a spectacular quarter by many measures. The company delivered over 86k oz of ore at just over $1000/oz. I think they are onto greater things going forward. With cash balance rising to $186m, with $24m debt they took as a precautionary measure during the pandemic, I have a feeling like SLR they're looking to go for some acquisitions when the opportunity arises.

The Spectrum takeover for very high grade ore reserves to add to their inventory is going to be rewarding, even though the price tag of $200+m to acquire it does put a ceiling on the ROI. I could still remember they paid $20m to buy Vivien and it has delivered lower grade ore than what Penny West should deliver. I lean on Vivien being their highest ROI mine, though happy for Penny West to prove me wrong.

Going forward, the guidance of 260-280oz shows me that they are looking to grow towards a 300koz target into the future with good timing on acquisitions. Would they need to expand milling capacity in future? I think if they buy more satellite deposits, that should be on the cards.

But I'm a happy investor with RMS, having been backing this horse since late 2013.

All the best,
Brian