Ann: Quarterly Activities Report, page-21

1. Obviously I agree with most of your commentary, but I don't think that US$ weakness is a threat to SLR because that is underpinning the POG and the perception that traditional non-US$ assets have merit, and that the surreptitious accumulation by the Chinese to backstop their currency will continue ..... as long a producer has large margins or very good hedging in A$ then 'happy days are here again' for some time. SLR has 124,000 hedged at $A1710 !!!
They would not do this if they weren't very confident they could deliver 124k oz, and indeed they have indicated they expect to deliver at the upper range of guidance ... i.e. close to 145,000 oz/yr.
One thing that can be relied on is Cool Hands absolute commitment to meeting or exceeding guidance.
He realizes that the restoration SLR credibility is essential to institutional acceptance and the ability to engage in corporate maneuvers, which may involve some debt, which will be backed by a locked in profit margin .... assuming AISC's don't go crazy .... which seems unlikely. SLR forward guidance for FY'18 AISC's is similar to FY'17 .... could be better, meaning EBITDA of $350-400/oz .... how much net profit?

2. Cool Hand has stressed that while he's a hard bargainer with employees and contractors, you have to at least pay the median rate for many and above that for key personnel (as well as complying with all the extensive H&S regulations etc) .... hard to argue with that, coming from a very experienced respected manager intent on SLR being a good legacy on his CV.
Obviously, some employees may be missing boom time incomes, but 'half a loaf is better than no loaf', and employees have not suffered anywhere near that of long-term shareholders, who might be down 90% ...... SLR is one of Kalgoorlie's largest employers and hence important in the local economy. SLR shareholders should be proud of the support they give to the families of Kalgoorlie & Perth that SLR nourishes.