On the 27 August when the Cap raise was announced, both SLR and gold price was at the swing high. The 85C level would be at a discount to that current SP/POG since any ascribed value of the company would have been 'more profitable' then. The problem with retail component of the SPP right now is that gold has fallen and with it SP.
Who know where gold is going from here short term until the allocation take up expires but if I was contemplating getting the SPP net of brokerage, I would rather wait until I can see a clearer signal from the POG or wait until the 'last minute' before writing out the cheque. Should POG falls to test the recent low then I know the uncertainty of any cash flow problem has been fixed provided it either recovers or AUD drops. So far we have a double whammy with POG falling and AUD rising.
I am also looking at a purchase for the long term but not entirely convince volatility will be subdued in the near future.
SLR Price at posting:
81.5¢ Sentiment: None Disclosure: Not Held
