what to do if slr hits $2.70?, page-113

I don't like the price drop but have averaged down. What is the upside?

1) The world recovery is a massive illusion. Does anybody really believe that things are great in the global economy? Will gold be a safe store of value?

2) We are on the cusp of a new financial year where a large increase in production is expected. Work out the forward PE multiple at 350k ounces annual production at a POG of AUD$1,600 per ounce. That underscores a share price of $4-5.

3) If the price of gold increases, the valuation moves into $5+ territory.

4) Look at the project pipeline in SLR's last presentation. This is a company growing and not one in decline. That takes the valuation up to $10 in the medium/long-term.

The share price has been hit but the SLR story has not changed a lot. Manage the short term and hang on for the ride back up the ladder.