I see short positions actually
reducing lately. I wonder if the shorting is just The Vanguard Group, as they sell down their interest in SLR?
SLR shorting increased around 22Jul21.
The Vanguard Group notified its "ceasing to be a substantial shareholder" on 24Jun21.
I wondered if this had something to do with tragedy at the Daisy Complex in Jun21. Certainly a full review of safety procedures at Mt Monger would be required. Now in the Jun21 Quarterly, we get advised that SLR will look to process the considerable Ore stockpiles at Mt Monger. The reason given as extreme labour shortages affecting mining in WA.
The Vanguard Group and Blackrock are enormous Fundies with some US$15t in FUM between them. I read recently that their investment in ASX Listed Companies amounts to them owning over 10% of the entire ASX.
The Vanguard Group ceased to be a substantial shareholder, meaning they then own less that 5% of SOI. That 5% is still about 44m shares.
Are they reducing that number to zero now? Is that the reason for the fall in the share price? The fact that they have sold
isn't necessarily a sleight against SLR, just that they feel they can get a better ROI elsewhere.In their CTBaSS notice, the main sales were "in specie" transfers of about 4.75m shares at market value at the time. Could they have exited their position in entirety, perhaps through arms length transfers? They still traded long and short to influence the market value during this time?
Maybe EVN looked in the SLR data room before their CR and considered a merge ... but declined. That's just a wild guess based on nothing but coincidence.
All that cash just sitting their on the SLR Balance Sheet, suggests under utilisation of capital and reflects poorly on management.
Tax losses of $383m is an ATO "get out of gaol" card for the next 3 years for SLR. Come Jul23, SLR may well have over A$600m in cash doing nothing, based on current profitability and projected production volumes increase.
The only other matter that I can see affecting their share price is the Company's overall Resource. So much of the Resource falls into the indicated and inferred. So I look forward to the ASX Announcement coming sometime in the next 6 weeks increasing the measured.
"FY21 drilling will be reflected in the annual Ore reserve and Mineral Resource Statement will be released in Q1FY22" - Jun21 Quarterly
I also note that while the FY21 exploration spend was only A$2.9m, the exploration spend projected for FY22 is up to A$25m.
I can't find anything to specifically negatively affect the Company's share price by 30%. Sure the Gold flash crash sent a 10% shockwave through Goldmining equities.
I've placed my bets here and I reckon that this is a "buy the dip" opportunity, due to a Whale exiting its SLR position. I expect this all to finalise soon. I'm expecting short positions to reduce to a more normal level.
AIMHO of course.
I really came here because I became interested in Gold equities. Relative to the NST MC, SLR looks undervalued when I compared their respective profitability. Moreso given that the SLR MC is 25% Cash.
On face value, Gold may look highly priced but compared to US equities and the US money supply, it looks undervalued too.
(20min delay)