Yesterday's and today's (so far) drop in SLR share price is more than 3X larger than the change in SLR's AISC margin caused by the change in gold price. All else aside, SLR is a significantly more-valuable stock now on a $-invested basis.
Specifically, SLR was trending above and below $2.01/sh, late last week when Aussie spot gold maxed at 2468. At the moment, the share is down to $1.87, and gold is $2445. SLR 2021 guidance midrange AISC is $1450. So SLR's AISC margin/oz has dropped 2.3% (2468-1450)/(2445-1450); while the share price has dropped 7.5% or more than 3X as much.
I'm aware that Morgan Stanley just put a target of $2 on SLR, and $2.30 on RMS. Aside from that, I am unaware of any change in SLR's business. More to the point, 1) March quarter under-performed for understandable and temporary reasons, 2) Deflector South and Rothsay are coming online by end of 2022 which alone should substantially elevate SLR's bottom line, 3) factors 1&2 ignore growth SLR might generate with it's industry-leading treasury, and 4) there's the matter of the 1.8km long Santa potential large pit to consider.
Happy buying some tonight, and more tomorrow if the OTC market cooperates with some panic selling.
