IMO, SLR is a good buy at this low level for the following reasons:
Mount Monger operations are generating cash at the current POG of A$1400 plus ( COP,AIS is A$1070/oz).
Murchison gold operations which were burning cash, has been placed on care and maintenance in July 2014 and recently an agreement to lease Murchison mill has been reached "Murchison mill lease (A$7.9M), elective extensions (A$16.6M)".
Prior to the global rout, the POG went down on the 6th of Oct to $1183 as investors were not optimistic about the outcome of the Federal reserve meeting later in the month and the expectations that the interest rate will rise as soon as June 2015.
With the global rout and the slowing in Germany, it remains to be seen if Janet Yellen tonight will soften her stance and delay the rise of interest rate.
Looking at the Dow future tonight, the market is looking into a positive statement from Yellen.
It will be very positive for goldies if there is an indication of late onset of interest rate rise. Listen to Yellen tonight on bloomberg.
SLR will most likely announce their quarter report on 23rd of October. I believe it will be positive, gauged from the movement of the share price which has been consolidating.
Big players are hesitant to pour money into goldies until they hear what the Feds will do.
There is also pressure for more stimulus from China and with the Indian / Chinese buyers, we may expect POG to rise.
I have substantial holding and has been encouraged by the increase of Van Eck stake to 14.96% from 13.90%.
Good Luck next week.
DYOR
SLR Price at posting:
34.5¢ Sentiment: Buy Disclosure: Held
