SLR 0.00% $1.57 silver lake resources limited

Yeh, I don't know why EGA built the DFS on a stand-alone plant....

  1. 3,692 Posts.
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    Yeh, I don't know why EGA built the DFS on a stand-alone plant. Perhaps they just considered the DFS a financial exercise. It makes more sense with a low volume mine to obtain a toll treatment agreement in the area, as witness the SLR bid which will feed ore in to the Deflector plant. There are a number of processing plants within a similar range as Deflector.
    EGA has high grade reserves and that makes it a bit different from GCY and BLK and better than RMS too. Comparing oranges with apples does not do you much credit.
    The two advantages that SLR brings are:
    a) the Deflector plant (but a toll treatment arrangement can be costed if EGA stands alone)
    b) Cash for development
    So, in effect, SLR is playing with its cash on hand to tip EGA into its stable, even though they are making a scrip only offer. That is fine if they give a decent deal to EGA shareholders and yet the current valuation leaves EGA valued considerably lower than before the bid was made. Some deal.
    I guess you could say that if SLR stuff up Rothesay and turn it into a lemon then they have other mines to carry them through. However, if SLR can make Rothesay work as a mine then so can others. That comes down to people and so basically you are saying that the EGA crowd are idiots who cannot run a mine.
    Rothesay is a great catch for SLR following the Doray purchase. PIty that they are so tight-arsed about it.

 
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