Cato. There is certainly no magic formula from from magic...

Cato. There is certainly no magic formula from from magic formula books.

I just let you know what figures I have used to come up with an estimated SLR EPS for FY14. Every investor should be having a go at that otherwise there would be no basis for a fundamental investor to invest in a company. Once you have an actual or forecast EPS, it is then up to the market to determine a forward looking P/E which will then determine the SP.

Unfortunately a fluctuating commodity price such as gold has analysts and investors often jumping at shadows and each ebb and flow rather than looking through the noise at long-term fundamentals which I try to do with my investing.

The SLR SP value versus the AUS gold price is not a formula at all. It is in fact an observation of mine. From the baseline of SLR at 70c when the gold price was AUS$1410 I have observed the intra-day high or low (depending on red or green day) or closing price of SLR has more than often followed the change in gold price as you would expect. The SLR SP has roughly been 2.7c higher or lower for every $10 per oz price movement from that aforementioned baseline. Never been a prediction, rather an observation. Compare the SLR chart and gold price chart.

Today it would seem that SLR may have decoupled from the SP/gold price range it as seemed to be in. Maybe tax loss selling finished, maybe large institution finished lightening their SLR shareholding, maybe good news imminent, maybe SP starting to reflect fundamentals like SP relative to TA as I think Chuck said. Maybe all of the above. I hope so because despite the Murchison set-back, SLR looks the goods compared to the multitude of high-cost producers on the ASX.