you said "Gold price 1370, cost 1350. Slr owed 17+14 MIL$ Nov 2013. Can't see that all being paid until POG goes 1400+ and holds?"
Sorry dude but u can't value a company just based on that. Let's say the company cannot pay the "large debt" and goes bankrupt. The question is what are the current assets worth? The mines owned, the land rights and the ore production facility must have a value right? Even if the current gold price is 1000 or even 800 does that mean the price will never rise ever again? The assets of the company, including the current reserves has been extremely undervalued due to the current GOLD bashing from the media. The company has only a very small debt 30 million compared to the asset value that has to be worth much more that that. The current price movement is largely a correction of it's true value triggered by the small movement of POG.
Many many companies are making huge losses year on year yet they don't have a value of zero. Qantas comes to mind, the goodwill from the Qantas name is already worth something. There are so many companies not making a single cent worth billions and billions of dollars. Eg Twitter. They don't even really have a plan to monetize the business.
SLR at least is making a profit (a small one) and have Hugh potential to expand should the price of gold reverse even in the next 10 years. That has to be worth more than the current market cap. When a sector is being bashed by the media daily, that is when you know u can find value. My statement does not hold true for all Gold companies of course since many has large debts or poor quality assets.
Profit != Market cap Negative PE != Zero Value
SLR Price at posting:
63.5¢ Sentiment: Buy Disclosure: Held