blythefan, page-2

The long and the short of it;

The short: SRL is merely a holding shell for its 45%-ish investment in SARL. Analysts value the company based on reference to some purported value that this SARL value transfers through to SRL holders, anmd assume that 100% of this is passed through to SRL holders. In reality, it is not. A holding company for a coal company, lumbered with 4 dead-duck metals mines 3 of which look hideously uneconomic at current prices, the 4th which has produced (to date, that we know of) 74t of antimony...well, no wonder the market seems to value them at a negative value.

The long: Can't be bothered. However, in a Warren Buffet-esque way, I appeal to simplicity in tht if you cannot understand the business model, you should not invest.

Lets put it this way.
Whim Creek - liabilities from shutting it down. Last Q cash costs $2/lb, current Cu price $1.59/lb

Tritton - lumbered with debt from the hedge buyout, last Q cash costs just above a buck, nominally cash flow positive, but minimal real profit before D&A and abnormals. Digging 3 declines, that's likely to stop, leading to no developed ore longer term and hence closure.

Mt Muro - cash costs of US$850/Oz last Q. Enough said, unless someone can quote the indoesian rupiah/USD rate as having fallen 30% in favour of the Indonesians.

Hillgrove - Possibly a bacon-saver for the metals arm. However, true cost of production in Au equivalence, totally undemonstrated. Capital costs to date poorly understood; working uphill in a thoroughly misunderstood specialty metals environment, and barely commissioned.

The Coal Deal - the sole reason anyone trades SRL. Which, really, makes you wonder if anyone truly understands the liabilities and disastrous financial impairments about to hit from 3, if not 4, mine closures.

This is before we note, acerbically, that Milan jerkovic sold 1M shares at $1.07 on the 10th of October. The Board and the Remuneration Committee then peg his share bonus - worth, I note, a steep 200% of his annual salary - at a price determined coincidentally as being the average of the 5 trading dfays preceding the 17th of October. This includes the trading on the 10th of October by M Jerkovic in his own stock, which was a sale of shares. So. I'll let you make of that what you will.