Below is pretty much a carbon copy of what I posted a few weeks...

Below is pretty much a carbon copy of what I posted a few weeks ago but is now even more relevant to reflect on with SLR at sub 90c and many SLR holders on the verge of capitulating.

"The difference between SLR and many other producers has already been shown by the quick and desicive decision making by MD Les Davis since the gold price 'shake out' a week ago. That was, to reduce throughput and ounces produced. And to mine higher grade blocks to maintain or actually increase margins.

Many producers (unlike SLR) MUST maintain dirt throughput no matter what, due to operational necessities regardless of the gold price. Multiple mines always diversify production and can smooth out revenues and profits.

SLR diversification will be further enhanced when a second production centre Murchison is declared 'commercial production' this quarter. And all the while SLR has the fortunate position of being abe to source and blend high, low and medium grade ore from multiple underground and open pit deposits and from a huge 'already mined' ore stockpile and produce at either of SLRs two different capacity mills in the same region.

SLR management should be close to finalising the Mount Monger Business Optimisation Review post-Integra merger. Most mining company directors would give up their first born child right now to have the extensive range of options and opportunities that SLR have in front of them through the combined SLR/IGR business. The integration and mining plan of the Integra underground and open pit assets will add to the flexibility of the megred groups mining plan for the next ten years and beyond.

This company has achievable plans to be producing at +300k oz PA rate next FY and then add another 100koz PA from Southern in a couple of years time. Short-sighted 'analysts and brokers', shorters, some investors and many stop-loss traders combined have priced in all the bad news and more, as well as the gold price oblivion scenario into the SLR share price in the last two weeks. Redemption is nigh."

I cannot recall the exact figures so please forgive. But in The Australian yesterday or today, Silver Lake Resources was ranked as being about 6 of 10 nominated miners with the most revenue/profit upside from a weakening Australian dollar.

Massive shorting yesterday. Probably today as well. The harder the short, the wilder the short-covering rally will ultimately be.

Hold if you hold. Start adding if you don't IMO.

Sarge