solid quarterly - gross market over reaction!

I'm not sure I understand the reason for the SP slide and it prompted me to buy again today.

The quarterly was a respectable document and concerns over the costings are ill founded, imo.

For starters, name one other company which is as transparent as SLR on their costings? Most of them play ducks and drakes in this area.

Sure total costs for the quarter at $1,057 are up on 09/10 results of $864 mainly because of the development costs ($230 v $90) which are spent in the period but will generate future production and revenues.

So, a more accurate comparison is this (and it makes it easier for people who are used to traditional cost of sales comparisons):

Total sustainable costs which include cash operating costs, waste development costs and royalties as a percentage of Gold revenue per ounce.

In the December quarter it was 59.58% ($827 as a % of $1,388)
For the 09/10 year it was 61.57% ($774 as a % of $1,257)

My conclusion therefore is that we have in fact increased our margin in the December quarter but of course there is room for improvement and I'm sure management are well aware of this.

PLUS we are debt free and the cash surpluses from gold sales were all ploughed back into development which will aid future production and sales...nothing shabby or unbusinesslike about that at all!

In buying again today I am placing a massive bet on management delivering on their 10/11 Au forecasts which means they expect to have a corker of a second half in getting to 90k to 105k ounces! I think we should hold their feet to the flames on this.