Diggers & drillers weekly update highlighted that gold mining companies outside of australia may have an advantage in $US costs as $A rises relative to $US. This could dampen the spirit of investors in shares like SLR. I have myself been puzzled why SLR has not risen with Gold price. The below extract could be remotely relevant to inhibiting the rise of SLR share price.
"There are many Australian gold miners and explorers that have practically all of their operations outside of Australia, where the costs are often paid in US dollars. Right now, these companies have a huge advantage over companies with purely domestic operations. Costs would now be over 30% lower than in March, and if parity is reached this figure will be more like 40%. This is the type of gold stock you want to invest in, not a recycled gold mine at home. "
I pray there is a change of fortune for SLR as I have always felt that Australian exporters get hit hard by a floating(rising) Aussie dollar. I hope there is a change of fortune in the next few weeks and SLR can hold up & stay above the dollar value share price.
SLR Price at posting:
92.0¢ Sentiment: LT Buy Disclosure: Held
