Gold stocks are very undervalued and unloved at the moment. I...

Gold stocks are very undervalued and unloved at the moment. I have been trading SLR in a range recently but feel that it may take off in a big way when the POG finally moves north. History tells us the POG will increase but the exact timing is anyone's guess. The biggest negative for SLR IMO is managment credibility:

1) "There will be no CR" (there have been 2)

2) "Dividends will be paid." Let's be realistic, at a POG of $1,600+ there would have been no dividends paid to date.

3) The company appears to have had no idea about Murchison. Again, at a POG > $1,600 Murchison is still unviable. How exactly did the company plan to spend $80m capex to deliver the underground mining, pay a dividend and repay debt by the end of 2013 (yes, straight from the CEO to me).

Based on the above I am not a big believer in the management team. However, when you look at the very good waterfall chart of cash flow in the last Quarterly Report what I like is:

a) Great cash flow from Mt Monger.

b) The hedging is great. I am a little disappointed that they did not hedge more ounces at $1,550 in this environment. Hedging all of FY 2015 ounces would have been great.

c) Putting Murchison on C&M will be inexpensive in an ongoing operating cost sense.

d) There is a healthy cash balance. Having no debt in this environment is a big positive.

I expect all costs of closing Murchison operations should be this Qtr. Based on what the company has announced to date the Sept 2014 Qtr should be very cash flow positive. If it is not the company has sold us a bunch of lies.