Ann: Quarterly Activities Report , page-2

Where is Juk to give us an analysis of this report?

In my layman's view:

1. Good progress on the expansion;
2. Sound cash balance - but mainly due to capital raising;
3. Total cash costs ($990) are too high - there may be a significant reduction in the future as waste develpopment cost are expected to fall and there is expected to be some further cost reduction once the plant capacity has doubled in February;
4. Operating cash flow negative to the tune of $3m - this should turn around I assume once expansion has been completed
6. Do not expect a dividend in respect of the 2009/10 financial year.
7. Murchison exploration progressing very well - basically a longer term project that has lots of potential
8. Still no increase in the size of resource/reserves - may happen in mid 2010 in respect of DM.

Overall conclusion is that SLR is making very good progress but is not a cheap producer so its current share price is probably about right. However, I would not be surprised if its share price fell back to 80 cents in the face of an overall fall in the sharemarket (or in AUD POG).

loki