Its interesting that our CEO is Luke Tonkin,the operations manager of NST is Stuart Tonkin.Just listened to the the Webcast from NST CEO.Reminds me of what Les was saying about 4 years ago the difference being NST have done it.They will produce 600k ozs from 5 mines.They are accumulating lots of free cash even at these prices and despite acquisitions,mine developement etc they only have $50 m debt to be paid back in 2015.They have $100m in bank I wonder if they will attempt to take over the cash starved SLR.
SLR has made some terrible mistakes Murchison being a major distaster that soaked up some $80 m cash.Without that major blunder they would have been ok.
They will survive if gold goes up but with only 1 plant and not generating much free cash the upside potential is limited.The saviour could be if they unlock the potential of the 30km BIF zone or new discoveries.
Maybe a company like NST who has had an aggressive acquisition programme may be the answer.The resource has not come up to what was expected Maxwells pit was a dissapointment so will be interesting to see if a company like NST run figures on SLR potential resource.If the resource is what Davis and Cairns have been spruking for years then it is a strong posibility if not then SLR will struggle.
SLR Price at posting:
24.5¢ Sentiment: Hold Disclosure: Not Held
