Buyers should get their chance now? Long as the story still sounds good when they're explaining the reasons for the cap raising.
hmmm... if you can't mine gold at a profit, mine the shareholders. No explanation as to why the debt suddenly needs to be repaid. Directors have 7% of the equity but only picking up 2% of the new issue.
Yeah - but wish some support came in to hold it, i didnt sell into it, because i wanted 0.25. Oh well
Time will tell if this is a good move or not, but only if you are in it long term. If you were looking to get in and out of SLR, this sucks.
Yah I think this might be a good time to buy. It looks like it will suffer a pretty big dip on Wednesday.
Theres no way this could possibly be a good move for SLR. Seriously.. Going to the market to raise capital when the share price is at its lowest point in years? Just how incompetent is management? And not just raising a little bit either.. $50million! They are going to have to offer shares lower than their current price so expect placement to be at around 85c. Thats what, like 70million new shares issued? Wtf! All this to pay off debt that is quite manageable AND while the share price is finally recovering. Anyone here read the investors presentation? 50 pages of mindless drivel and 6 pages of actual info. I have seen better power points made by 12 year olds. So they are issuing more shares while the resource is not growing (actually declining) and ceasing expansion and exploration (well not completely, there will be a measly $7million spent on exploration in FY14). SLR is currently operating for a AUD gold price of $1350/oz. From the investors presentation: Current budget A$1350 gold price environment: -deferral of capital expenditure -deferral of organic expansion projects -treating stockpiles to reduce spend in ground -modest and prudent exploration spend, however maintaining a sensible exploration program (what a load of bullshit) ^this made sense earlier this year with gold rapidly declining and not showing any signs of stopping; but now with gold above $1500 AUD it kinda makes no sense. Improved and sustained gold price environment: -Commence production from Wombola Dam with minimal lead time -develop Majectic and Imperial deposits -recommence underground development in the Murchison to compliment existing open pit operations -Enhance exploration efforts: -Lorna Doone -Raldalls BIF -Great southern How many more weeks of gold going up will it take before SLR directors consider changing operations to "Improved and sustained gold price environment"?. No clue, not a mention in the 56 page presentation. SLR now aiming for annual production of 200,000 ounces per annum. That made sense in April but not any more with gold prices recovering why not go back to last years goal of 400,000 ounces per annum and dividend in 2014, at least for now. If gold starts going down again THEN change back to "Current budget A$1350 gold price environment". With the gold price as skitzo as it is SLR needs to be more flexible, eg producing 100,000 ounces per quarter at times like now then times like last quarter dropping production to like 50,000 ounces. But no that would make too much sense for these mentally incompetent directors. Not happy
Butbut notBen, it might mean I'll be able to buy cheaper Investors like companies that don't have any debt issues.
Yep and quite rational considering the directors basically just gave a big F*CK YOU to all existing share holders.
Thats true but SLR's debt wasn't (isn't) an issue. They are producing a profit and are capable of producing a profit with lower gold prices so I really can't see where the sudden need to pay off debt has come from. Especially at the shareholders expense. Waiting for the share price to go higher ($1.40+) obviously would have been much better IMO. Just like that they have screwed SLR's share price recovery. I can see why having no debt is a good thing especially with the uncertainty around gold prices but diluting shares like this is the wrong way to go about it. Are you actually going to buy SLR? May I ask why you have chosen SLR over others like NST?
SLR in on my list but I am definitely not going to get very involved with gold stocks again. I shouldn't be buying any. Here we have this upsurge in interest just because the share prices are going up. I didn't want SLR at 60c, or SAR at 10c, so why now. The only reason I would buy SLR over NST or DRM is to spread my risk, or if looks relatively cheaper. The chart impressions would also influence me as to which seems best chance to appreciate quickly and let me sell down some to lower my average.
Fully underwritten SPP and Placement @0.85, scallable if too many applied for (which means not an unrenouncable rights issue which sucks because if you hold a minimum of shares you have the same oppertunity to buy maximum) I think this is a good move by the comany for these reasons 1. It puts a level of support above the nearest chart level of support 2. If the share price falls below the SPP price its fully underwritten 3. Pay off debts I think it is bad for these reasons 1. Dilution 2. Sentiment still low 3. Market didnt expect the company to need money 4. Ivestors may have overweighted the undervalued stock and may be 'saturated' in their possition already looking to take profits, not buy more in a SPP. Explains why its not a nonrenouncable rights issue
New shares to be issued at $0.85. I wonder whether cash flow is the issue. Only had $19m in cash and bullion at 30 June and it recently flogged off West Musgrave to Anglo albeit for royalties.
I made a tidy sum some time ago with SLR shares, the thing that got me into them was that the directors were a mix of some of the wealthiest people in the Kalgoorlie mining scene. Exactly why I got out of them as well, seems like they're lining their pockets again, $1.2m this time.....pity the shareholder.
