The gold market in general and small end, in particular, is out...

The gold market in general and small end, in particular, is out of favour with the hot money.
SLR is now trading at NAV 36c !! That's for a company that has convinced a sophisticated financial company (Citibank ?) that it will be able to deliver the 120,000 oz/pa now hedged at A$1700/oz for the next 3 years. So, it's fair to say that all things being equal (no earthquakes etc) that current EBITDA repeat seems assured. So the financial predictions in MarketWatch would seem robust and reliable. PE FY17 was 96.25, predicted PE FY18 12.8 (EPS 6c) and PE 6.42 FY19.
NST PE's for 17,18,19 are 16.71, 13.23, 11.21 ..... the "gold" standard.

Needless to say, despite the drop in MC due to the EV is really unchanged and the EV/EBITDA = 1.4 is very cheap for a solid company as shown by the metrics below from the Ann Report. Bloomberg's average Mid Tier gold producer in April 2017 was 9.6 ..... then SAR was 6.2, RRL=6.6, OGC 5.4 and NST 5.5 ..... DRM was 1.8.
Bloomberg's average Mid Tier gold producer in April 2017 was 9.6 ..... then SAR was 6.2, RRL=6.6, OGC 5.4 and NST 5.5 ..... DRM was 1.8 .... SLR 1.4 !

• »  Revenue of $227.5 million
• »  Net profit after tax of $2.0 million
• »  EBITDA (excluding significant items1) of $70.0 million
• »  Fourth straight year of EBITDA margin growth
• »  Cash flow from operations of $64.0 million
• »  Cash and bullion at 30 June 2017 of $69.1 million
• »  No bank debt

SLR AISC's are relatively high (but not unprofitable) at A$1359 for FY'17, and are expected to reduce gradually over time (this is a KPI for LTI etc) but don't include everything, and a lot of mine development is not included. Google AISC to get a definition of 'AISC'.
Also, it has solid resource & reserves, which it constantly endeavors to improve via its very active, economical  & successful exploration program.  It now has a pipeline of projects to give strong visibility to future projected production.
The unnamed analysts referred to on Market Watch, have 2 "hold" and 1 "buy" for an average "overweight", and the average price target was 62c ... I'm lead to believe that RBC still has a 70c 12-month price target.
So, despite the angst about the SP performance, and certain members of the board, the bottom line surely is SLR is oversold and cheap on many metrics. Moreover, its production looks assured and has insulated its future income by very good hedging. The only thing that could undermine it is a very big devaluation of the A$ .... seems unlikely.
As I said previously, SLR has intrinsic value, real assets, strong management and no 'non-performing assets'.
At what price it will bottom at GOK, but it's going to survive and probably thrive .... over time. I won't be a SH in the long term, but I think it unwise to sell at these bargain basement prices that are clearly disconnected from fundamental value.
I would love to top up further, but my wife has threatened to take out a restraining order if I buy any more gold stocks.
Sell if you must, but don't throw this baby out with the bathwater because you loathe some of the fathers.... act in haste, regret at leisure. Perhaps Buffettology about buying when cheap and when others are panicking now applies to SLR.
Can SLR double from here ... why not .... Will NST double from here ... probably not.