Silver Lake Resources (SLR)
- Thread starter Greenman
- Start date
bellinvest said:
Are there any recent articles or reports about the state of the company? A lot of the stuff I've found seems a little out of date...at these prices I'm definitely interested if there's a company left to buy into. I'm way over invested in metals and mining companies but this is definitely interesting. When gold hits $2k and silver breaks $50 I'll diversify. I'm trying to save some money for bargains like this but if the asx keeps going the way it is there might be plenty of non commodity bargains about.
bellinvest
New Member
Jump on the ASX and have a read through a few of the reports for reference. These will be their latest publicly announced information.
They have put some operations on maintenance, sold/leased mills and are scrambling to bring all-in cost under control with their lower cost operations. They are really just in a fetal position trying to weather these lower prices - mining just enough to pay their bills. With so much negative news about the metals most are very unloved. SLR have many low-cost deposits which would be cashflow positive however, capital raising etc. in the current environment would spell more dismay for these guys in the short term.
I like their overall business operation which is made up of some fantastic assets. The only thing holding them back from their full potential, like most gold stocks, is a low price in Au. With a market cap <$100m and holding so many great assets i might pick up another parcel in the New Year. I won't catch the falling knife with these guys - but at $0.15/share it could make for a turnaround story of the decade.
DYOR.
They have put some operations on maintenance, sold/leased mills and are scrambling to bring all-in cost under control with their lower cost operations. They are really just in a fetal position trying to weather these lower prices - mining just enough to pay their bills. With so much negative news about the metals most are very unloved. SLR have many low-cost deposits which would be cashflow positive however, capital raising etc. in the current environment would spell more dismay for these guys in the short term.
I like their overall business operation which is made up of some fantastic assets. The only thing holding them back from their full potential, like most gold stocks, is a low price in Au. With a market cap <$100m and holding so many great assets i might pick up another parcel in the New Year. I won't catch the falling knife with these guys - but at $0.15/share it could make for a turnaround story of the decade.
DYOR.
phrenzy said:
SilverSanchez
Active Member
No body understands their strategy. Produce as little as possible gold to keep mines from care and maintainace while prices are low. Why depleate resources for less money. It's a gamble but might pay off for them
[youtube]http://www.youtube.com/watch?v=4Ru8DMW-grY[/youtube]
Price target cut on Silver Lake Resources
Source: http://www.afr.com/markets/equity-markets/price-target-cut-on-silver-lake-resources-20150423-1mrilh
On valuation grounds and current AUD gold prices, Hartleys is maintaining a "speculative buy" recommendation on Silver Lake Resources, with an updated price target of 52 a share (down from 55).
"Silver Lake is looking cheap on EV/EBITDA estimates, trading around 1.8x FY15 and about 1.1x FY16 on current spot prices."
"Silver Lake Resources reported MarQ production from Mount Monger of 33,198oz for gold sales of 34,003oz, which was above our production forecast of ~29Koz. Gold sales generated revenue of A$51.6m.
"At the end of the quarter, the company had cash and bullion of $22.1 million (down from $23.1 million) and gold prepay arrangement for $8.3 million (paid $1.7 million in the MarQ). Silver Lake is now required to deliver 392oz/month from April 2015 through to July 2016 (total 6,272oz prepaid at around $1417 an ounce). In addition, as part of forward gold hedges the company expects to deliver 108,554oz at $1563 an ounce over the next 17 months, roughly 60 per cent of forecast quarterly production.
"No change to previously lowered FY15 guidance for around 120Koz, with YTD gold sales of 98,131oz (Mount Monger and Murchison), show potential for guidance to be exceeded. Ore is expected to be sourced from the Daisy Milano and Cock-eyed Bob underground mines, Wombola Dam open pit and surface stocks in the JunQ. We now model FY15 production of about 122Koz (adjusted up slightly from 118Koz)."
Source: http://www.afr.com/markets/equity-markets/price-target-cut-on-silver-lake-resources-20150423-1mrilh
52cents a share... now that would make many holders happy!
zedstrange
Member
I have lost a fortune on SLR, so much that I have already written off as a 100% loss. So any price is good. I was thinking of selling now and buying back just to get the big red number off my portfolio. It Is depressing. 
I have hedged my bets on much higher gold prices. This is the only one that has hurt me though.
I have hedged my bets on much higher gold prices. This is the only one that has hurt me though.
zedstrange said:I have lost a fortune on SLR, so much that I have already written off as a 100% loss. So any price is good. I was thinking of selling now and buying back just to get the big red number off my portfolio. It Is depressing.
I have hedged my bets on much higher gold prices. This is the only one that has hurt me though.
I lost on this one too your not alone - I should have banked on NST. When the gold price goes up SLR goes up a little, when the gold price goes down SLR goes down a lot. It's a horrible little stock.
Get rid of it so you can offset the loss against any gains. Trust me you will have plenty of time to buy back in on this one, but there are better gold stocks out there.
Maybe go for an index/sector play?
Yes I have lost on SLR too! It's been a baaaad run downwards. So many have been burned in this one. Should have sticked to large cap like NCM, or pretty much any other gold stock for that matter. Even KCN hasn't been as bad. Don't know if SLR can go down much further, 18cents now... And to think it was $4 two and a half years ago! For someone who would have bought near the top, I can't imagine the pain it must have been. Anyway if it could regain a bit that would be nice. 52 cents ... Don't think I see it happening, but even half that would be good, say mid 20s range... Or a take over, now that would be sweeeet
zedstrange
Member
SilverDJ said:
I dont know much, even less about ETF's how can one buy the XGD index?
I went through all the info on Commsec, and cant find any one of their providers having it.
SilverDJ
Well-Known Member
Other ETF's exist on Betashares like the commodities (QCB) one which is near rock bottom at present:
http://cms.betashares.com.au/cms-admin/_images/1846286324553dd9ac1e8e9.pdf
http://cms.betashares.com.au/cms-admin/_images/1846286324553dd9ac1e8e9.pdf
