Smartdude - thanks for the response. If you assume net cash flow...

Smartdude - thanks for the response. If you assume net cash flow of $20mpa for 10 years, you still get a NPV below current EV @ 10% discount.

I am not comfortable extrapolating NCF of $20m for 10 years given operational outlook. and a 10% discount is extremely generous for SLR.

I am well aware of leverage at equity level, that is the only positive about being a low margin producer!

There are plenty of triple long/ triple short gold ETFs out there which you can leverage into as well. AUD I put up a margin of <1%, SLR it will be cash up front.

Or options? isn't an ITM gold call equivalent to holding SLR? Gold price drops $200, stock and option go to zero, gold price goes up $200, both stock and option double?

Of course I am over simplifying and completely discounting exploration.. But, value is relative isn't it?