That is a nice summary of the situation by Sarge. I think they...

That is a nice summary of the situation by Sarge.

I think they are doing they best they can in the circumstances by reducing costs while keeping options open for the future.

Nobody should be under any illusions that they are now going to get to 200k ounces per annum rate by mining all their ore from some high grade underground sources within the next one-two years while using the current Randalls plant.

I have done some very rough calculations and think that Randalls mill could produce somewhere between 120-150k (tops) ounces per annum, depending on ore grade. The underground mining operations at Mt Monger could provide about 110k tonnes per quarter at say 6.5-7 grams/tonne with the balance of ore milled coming from much lower grade open pits.

I suspect costs may be higher than expected at Mt Monger so they are taking this seemingly drastic step to achieve costs savings. I suggest they also close their Perth office and move to Kal, where office space should be cheaper - but that might mean that Sir Les and his five amigos have to live there again.

Congrats to those who bought in before the spike in the POG - that was some ride.

SLR should be able to survive in the current environment, but there will be little if anything for shareholders because any profits will need to be ploughed back into exploration, mine development, and possible capex at Mt Monger.

loki (still looking from the outside)