the buy reccomendations have started...

Deutsche Bank rates SLR as Buy
Friday, April 5, 2013 - 10:23

Quarterly production from Murchison has fallen well short of the broker, although the gold-in-circuit number was much closer to Deutsche Bank's forecast. Group June quarter expectations have been lowered a bit , which sees FY production down to 19koz from 24koz. Capex for Murchison has also been lifted.

Stocks were sold down on the news, which increases the broker's conviction in its Buy call given the view the current price only factors in a gold price of US$1,176/oz.

Target price is $2.90 Current Price is $1.63 Difference:$1.27 - (brackets indicate current price is over target). If SLR meets the Deutsche Bank target it will return approximately 78% (excluding dividends, fees and charges - negative figures indicate an expected loss).

The company's fiscal year ends in June.

Deutsche Bank forecasts a full year FY13 dividend of 0.00 cents and EPS of 22.00 cents .

At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.41.

FN Arena

Market sentiment: 0.8