Silver Lake Resources (SLR)

SLR announced a merger with Doray Minerals (DRM) this morning, to create a mid-tier gold producer of around 240,000 ounces per annum.

The ASX announcement described it as a "merger", but an Aus Fin Review article calls it a move "gobble up" Doray, and points at more consolidation to come in the industry.

Mr Market not impressed: SLR -9.6% and DRM -11.1% at the close.
 
I'll have to re-evaluate SLR now. I liked their cash positive no debt position before and pulling tons of gold out of the ground. I hope the merger doesn't impact that.
 
Stackman said:
SLR announced a merger with Doray Minerals (DRM) this morning, to create a mid-tier gold producer of around 240,000 ounces per annum.
The ASX announcement described it as a "merger", but an Aus Fin Review article calls it a move "gobble up" Doray, and points at more consolidation to come in the industry.
Click to expand...

Most certainly an acquisition:
Merger between Silver Lake and Doray to be effected through a scheme of arrangement, under which Silver Lake will acquire 100% of the shares in Doray
Each Doray shareholder to receive 0.6772 Silver Lake shares for each Doray share held
Existing Doray shareholders will hold approximately 37.3% and existing Silver Lake shareholders will hold approximately 62.7% of the Merged Group respectively
Click to expand...
 
The new group still looks in great financial position.
Combined group now has some debt of $15m, but cash assets of $134m, and pulling 230+ tons of gold out of the ground a year.
What's not to like?
Ok, a dividend would be nice!
If they start paying a dividend then I see the price climbing a lot over the coming years. I think I'll hold. I'm free running my SLR shares anyway after getting my money back from 15c.
Why the down-sell from the market? How many other companies are in such a good financial position with such a steady income flow?

upload_2018-11-14_19-13-18.png
 
Don't know if the market is just acting irrational as they normally do or if there is something deeper that I'm missing, because i thought it looks ok.
 
SLR weekly chart:
SLR_weekly_17feb2019.png
 
SLR's current market cap is $330M. If they can crack $440M then they'll sneak into the ASX200, at which point they get on everyone's the radar.
And as mentioned, if they start paying a dividend then I expect the price to move up substantially.
 
Stackman said:
SLR added to the S&P/ASX300 index effective 18 Mar 2019.
Click to expand...

It's only going up from here!
You'll be hard pressed to find a more impressive financial position. Zero debt, 104M in cash an bullion, and literally pulling tons of gold out of the ground a year.
And they have a mine called Cock-Eyed Bob!, what's not to like?

With cash up 56%, there has to be more pressure on the board to start paying a dividend, surely.


upload_2019-3-10_16-43-23.png
 
Really wish i purchased more at 14c.

Let's get back to the good old days :)

slr.jpg
 
Last edited:
Please Sir, may I have a dividend...
$123M in cash and gold, and zero debt
Why is that any other company in any other market in that position would be lauded as a bargain buy, but in the gold sector, meh.



upload_2019-4-30_9-19-27.png
 
Punched to $1 today. A big price level, if it pushes past $1 who knows where to next! Both SLR and Gold are at major price points where things can get very exciting very fast.
 
leo25 said:
Punched to $1 today. A big price level, if it pushes past $1 who knows where to next! Both SLR and Gold are at major price points where things can get very exciting very fast.
Click to expand...

The price jumped up yesterday before the big announcement of a "Spectacular" gold find this morning, people knew.
 
SilverDJ said:
The price jumped up yesterday before the big announcement of a "Spectacular" gold find this morning, people knew.
Click to expand...

People in the know always know before an announcement, this is true with every stock ever. Also had to do with GDXJ (VanEck Vectors Junior Gold Miners ETF)
 
You must log in or register to reply here.
Back
Top