I agree Tooli. Rising POG will see this as a minor bump in the...

I agree Tooli. Rising POG will see this as a minor bump in the road.

I think the SLR management are to be congratulated at taking what is a highly responsible step, although unpopular. Their debt needed repayment to strengthen the balance sheet.

I am amazed by the uninformed comments on HC today re the CR. Of course, I don't like CR either, but its far more important to be cashed up rather than in debt, if there is another engineered drop in POG. I'm in SLR for the long haul. Yes, I have very substantial paper losses on my SLR shares which I acquired via the IGR take over.

You just have to look at the potential mine sites and present mines with huge upside potential outline in the preso, to realise that SLR is just about without peers in a rising POG environment.

A few days later with the CR might have seen the raising at a $1.00 rather than the probable price of 85 - 88 c. (I think it might be around 88c as the bookbuild will be very popular with goldies being the flavour of the month atm.

My only concern with SLR is we need to get the SP up to well north of $2 this year, as predators will emerge. Now many of the majors are selling off high cost mines (eg. glencoe > Anglo deal), some might decide to grab a few 300kOz producers/potential producers.

With their existing debt retired (which was used to build their new mine north of Perth), SLR are well priced to get their Southern operation built and move to put their present near production sites into production.

I think it highly likely that we will see at POG around US$1600 during our spring, which should translate into A$650 free cash flow per oz. If achieved and repeated for the full 2014 calendar year, this should translate into free cash flow of about A$117 million. This should yield a SP well north of $2 a share. Sure there are a lot of if and buts in my views, but there is 40 years of mainly successful investing behind me.

One final comment, a recent poster added the cash + bullion held as of June 12 vs the same as of June 13. He claimed a loss of $70 odd million. Of course almost all of that went to build their new mill and mine near Meekathra (spelling?).