In my opinion when there's panic I look at the facts,
Panic is an emotion based on fear and so ignores facts and of course with the imagination running wild creates unlikely worst case scenario disasters in the future as certainties.
Firstly, SLR has provided us with an extensive and concise quarterly showing ALL costs involved in its gold production, not just the near useless imo "cash costs."
SLR has acted responsibly to slash production of gold that is marginal at an Australian dollar gold price of $1300.
In the quarterly SLR indicated that this will reduce the total costs at Mount Monger by A$100 an ounce and generate free cash flow of $3 million to $3.5 million a month.
In doing so, SLR will be operating very profitably. By my calculations with gold on the improve and now close to A$1400, that free cash flow amount of $3 million to $3.5 million a month may already be revised upwards to around $4 million to $4.5 million a month.
What is perfectly clear to me is that SLR has substantial leverage to a rising gold price, with the lower grade ore also able to be quickly brought back into production as the gold price warrants. Plus there are plenty of new deposits just waiting to be mined.
But when there's panic who cares. For in a panic situation folks are all saying, "Sell. Sell. Get me out of here at any price!"
SLR Price at posting:
$1.03 Sentiment: None Disclosure: Held
