It took 3 days to buy a modest position at 17c, but I'm now the latest shareholder of SLR. I phoned the company again this week and was impressed. They've been producing about 3,000 oz per month this quarter and although not allowed to provide me with a cash cost number, I was informed margins are now healthy with no need to raise capital to fund operations either at Mount Monger or Murchison in the short / intermediate term.
I calculate the market cap is now trading at approximately cash operating margin for one yr. Big company management who have their "heads down, bums up" to get through the credit crisis. The 900k oz resource at Murchison is high grade (3.8 g/t) and open pittable, with much more to come once drilling below 100m starts in the next quarter. One of the biggest cost challenges will be how they source power at Murchison.
Rowingboat.
SLR Price at posting:
17.0¢ Sentiment: LT Buy Disclosure: Held
