In tough times like now QED, it comes down to management ability.
Will they do their best for long term shareholders and back that up with insider buying? They can't do anything about the $A gold price but they can manage the situation to the best of their abilities, provided their interests are aligned with ours. Insider buying is the best evidence, which SLR management is doing in spades.
In the intermediate term, I happen to think 1) the USD gold price has bottomed, and 2) the AUD will fall. I also think that the gold price will outperform commodities and therefore the real gold price will rise. This is another consideration of gold miner profitability, i.e not just the gold price itself but their input costs.
Regarding insider buying, I've read this is happening right across the gold industry. I can't be bothered looking for the link, but this is now of the same scale as the lows in 2008 apparently.
Also, and sorry for this turning into a rant, but the recent insider buying suggests to me that SLR won't need to raise equity soon. That's the message management is sending us, IMO.
SLR Price at posting:
$1.15 Sentiment: Buy Disclosure: Held
