Well the good news is that SLR has already remodeled its business to operate profitably at an AUD POG of $1,300. Mt Monger should generate $3-3.5m free cash flow and Murchison will be profitable at these levels.
The bad news is that I was hoping we wouldn't have to see these levels. Judging by the way gold is tanking and Aussie dollar holding up we might see that level very soon!
Even though I like SLR and continue to own have only had my sentiment as hold as I have no idea where the long term AUD POG will hold.
At my average price which is over $1 believe we will do well at AUD POG of $1,400. At $1,300 will do ok, but at $1,200 or below on a long term basis then even the current price is probably too high.
Time will tell if this is just panic/capitulation selling or this is the new long term normal for AUD POG.
If its the former then investors should do well in 3-6 months. If the latter then watch out!
SLR Price at posting:
55.5¢ Sentiment: Hold Disclosure: Held
