SLR has had a great year operationally but I have to say I am disappointed in their exploration and communications.
Deflector exploration results have been fantastic but there has been very little exploration reported at Mt Monger. Furthermore I can't understand why SLR hasn't been exploring the other prospective sites around Deflector like King Solomon and Spanish Galleon not to mention Deflector North.
They've got 6 million ounces of resources grading around 4g/t and just over 1 million ounces or reserves. They should be using their abundant cash reserves to be ramping up drilling at both Deflector and Mt Monger.
I know plenty of others have suggested they may consider another takeover but their mine profile includes multiple mines all open at depth in multiple directions so why not just ramp up drilling to convert resources and extend known resources.
They should have held on to Imperial and Majestic and it would be good to know if they intend to drill further at ceased open pits like French Kiss that ended up grading 6g/t. Not sure why they think they need to outsource exploration of existing pits and known resources.
I would like them to make a statement saying they are going to aim for a reserve of 2 million ounces within 3 years.
Re communications - they are saying Santa Fe is going to provide base load for up to five years - what does this mean - there's no much point in giving a time frame if you're not going to state a production rate and cost. This alone could go some way to meeting 2 million ounces. They first mentioned this back in July/August but we haven't had any actual further details.
We need more clarity about their growth plans.
Still holding and rate this stock highly but management need to provide a growth path forward for shareholders.
GLTA/IMHO
SLR Price at posting:
$1.86 Sentiment: Buy Disclosure: Held
