SLR had just over $350 million in cash, gold, and securities, at the end of June. If gold holds over $2400 Aussie, SLR will likely clear over $100 million in cash in FY2022, because Mt Mag will be milling stockpiles that have already been mined.
Here's what it means if junior miners keep dropping in price: SLR can do an acquisition on the cheap. I know I sound like a cheerleader, but that's the bottom line. There is nothing fundamentally amiss in SLR's business. That assumes the labor shortage resolves as Covid vaccination percents increase, which seems like a reasonable assumption.
If gold does drop significantly below $2400? SLR can do an acquisition on even more favorable terms.
SLR Price at posting:
$1.44 Sentiment: Buy Disclosure: Held
