Interestingly i was looking at another miner in australia called...

Interestingly i was looking at another miner in australia called DRM.

They have a market cap of 150m producing roughly 75k ounces at about 1000$ AISC. Their net debt position (cash minus debt) is around 28m. This translates to a enterprise value of 178m. They have a hedge but it will be used to pay off their debt anyway. (Stands at around 40m+ as at march 2014). Their mine life is low 3.7 years but seems to be high likely hood of extending it.



Lets compare that to SLR.. which has an enterprise value of 180m ( 221 market cap minus 41m cash/bullion). They have no debt, have 30% production hedged at favourable prices. Producing over 150k/year at about 150$ higher AISC. The thing here is SLR are producing more than twice of DRM and have a 10 year mine life. This is not mentioning the other assets that SLR have which can be turned on rather quickly in the event gold gets over 1600$ USD.