A simple take on the POG movement and SLR sp can be tracked like this.
Assume SLR, are on track for gold sales of around 210koz in fy2013, 370koz in fy2014 and 400koz in fy2015. Each $A100 poz rise in POG (net $70) delivers about 3.9cps, 6.8cps and 7.4cps increase in NPAT respectively. Do your own sums from there, but it adds up quickly depending on what PE you want to speculate on. As we have seen the converse scenario hurts badly too.
SLR Price at posting:
$2.30 Sentiment: LT Buy Disclosure: Held
