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07/02/24
18:55
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Originally posted by GuessingGame:
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I've held SLR for years and years now (30-50c range), I had a sell order ready for last friday to directly swap SLR shares into RED - didn't get filled unfortunately. Then merger announcement and we tanked. BUT... I'm actually understanding of RED being the majority and making them a discounted offer, because RED have greater long term upside than SLR and I believe SLR were only a few quarters away from being in big trouble - cost and mine life uncertainty (hence my reason to bail) - my analysis is very simplistic but Joelstar and Speculator do the heavy lifting on numbers in these threads. Everyone here has similar conclusion about SLR providing the cash buffer that RED need and RED providing the LOM that SLR need yada yada. I'm thinking I'll accept the offer (also means I avoid paying CGT if I were to sell SLR - but not everyone in that boat) because the next 3-5 years could be quite successful for a >400,000 Oz producer with POG at >$3,000 AUD. My main gripe would be the heavily stacked board - 8 is too many - bunch of pencil pushers going along for the ride, unnecessary IMO. Just sharing thoughts and looking for positives. Will enjoy seeing this unfold.
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"SLR were only a few quarters away from being in trouble." Get your hand off it champ. SLR has almost $500 million in liquid assets plus two very high grade underground mines that are minting money hand over fist for at least two more years before further exploration. Santa Fe and Cock-Eyed Bob is soon to ramp up again not to mention these exceptionally high drilling results that aren't even in reserves. Any other CEO would have put out a press release about these but not Tonkin. I agree Sugar Zone needs clarity but at with gold at $3000 an ounce its at worse a break even prospect. Red has an EV of a million - SLR's is half of that. Red is the winner in this not SLR shareholders. Oh and of course Tonkin who gets to shaft two lots of shareholders instead of one. GLTA/IMHO