I think a major impact on SLR has been the very strong vote of...

I think a major impact on SLR has been the very strong vote of confidence their business model and management has had in the past from large Gold ETF managers like Sprott in the US.

With the liquidation of those ETFs unwinding so quickly SLR has copped it in the teeth like few others. Technically it is a broken stock from a charting perspective. From a quantitative perspective which is my back ground it is not broken but is residing in a significant historical outlier at present making the ability to say pin your ears back long or it's going to nought very difficult.

My take is that this company will offer a great deal of value medium term as it has time to digest what has occurs in time and price and so as a result it will likely miss the first real raft of enthusiasm on any reignition of the gold bull thesis more widely. I consider PRU to be in a similar position to SLR however I think if gold prices can solidify in a 1500-1600 range again in the next 12 months that SLR should still be able to meet their goals of being a dividend producer within the next couple of years which will without doubt attract much greater levels of interest.

Their lack of divs has also smashed them in comparison to others. Being able to buy NCM at our historical quant model base circa 15.90 on a 4.5% div, FCX (Freeport) in the US on the same div and ABX (Barrick)even better, there was just no question of whether I allocated into SLR or not. It was a blanket no, not because their company is bad but they were just not the best looking ones at the dance.

They will regain their lustre again however I believe what took such a short time to erase from a price and confidence perspective will take much longer to regain making those who are heavily committed or averaging down suffer a little longer in a digestion sideways than they maybe expect.

As an SMSF component on a 20yr horizon though who cares but for a lot of people who are not tied in heavily with funds that they traditionally have seen as a shorter term trading tool, the opportunity cost of doubling down here seems to attract a larger premium than is necessarily evident on a superficial analysis.

I hold them in the 1.70s in small size as I really like their story however as it all fell apart, the shine and income the big boys generate combined with their extraction costs and diversification means there is no reason to commit heavily to juniors imho.