SLR 4.20% $1.24 silver lake resources limited

IR Part 2 - Peer snapshot & SP Perf. comparison

  1. 1,259 Posts.
    lightbulb Created with Sketch. 9254
    Hi all (again),

    In this post I have included two tables and a chart comparing SLR to its peers.

    Table 1. Peer snapshot (locally listed junior producers)

    The below table  (as at 17-Aug) compares M/Cap, Cash and equivalents and debt for the purposes of calculating and comparing an Enterprise Values (EV) that any potential buyer would need to consider. I've also included production rates for the HY just gone, hedging profiles and SR classification where required. Note that this table is only a snapshot and does not include financial measurements such net operating margins, EPS, forward looking statements and a host of other forward looking indicators.

    From this table however a couple of things become apparent. Firstly SLR's EV is much lower than nearly all of its peers. Overall debt is quite high compared to all but two of the peers listed (refer to the makeup of debt in the notes below the table), though certainly not at a level where it could become unmanageable in the event of lower margins (unlike BDR for instance)  

    Secondly SLR has produced more ounces so far this year than most of its peers listed in this table.

    Thirdly, SLR's in the money hedging profile partly compensates for the fact that it remains a relatively high cost producer, although in fairness AISC's have improved compared to the Dec-2014 half (not shown).

    Table 1 SLR peer comparison snapshot 18-Aug-2015.png   
    Table 2. SP performance table (updated 17-Aug).
    SLR vs other ASX goldies, related indexes and the price of bullion in USD, AUD and BRL.
    Performance timeframes include calendar 2012 (right most column), 2013, EOFY 2014 and YTD.
    Also included are fixed performances for 2014, Jan-March 2015 (Q1) and Apr-June 2015 (Q2).

    As you can see, SLR ranks in the bottom 5 in almost every period within the table, with the exception of Jan-Mar 2015 quarter.

    In less than 3 years, SLR has lost @96% of its value and no other gold stock in this table has undergone such a brutal devaluation in that time. Even if SLR's price rose to @40c tomorrow, it would still rank in the bottom 5 performances since 2012. Therefore in SP terms and given the current low EV and improved fundamental outlook for the company (still to be discussed), the potential for a significant re-rating exists IMO and thus outperformance vs some of its closest peers is a distinct possibility in the weeks and months ahead.

    Meanwhile the POG in AUD has performed quite nicely since 2013, but obviously the same cannot be said for POG in USD.

    Table 2 SLR performance table vs other stocks bullion and indexes 170815.png
    3.  Five year chart illustrating the performance of SLR vs some of its closest locally listed peers.
    Once again SLR reigns supreme sporting a 93% decline.
    SLR 5 year performance comparison August 2010 - Aug 2015.png

    More analysis to follow in the coming days.

    Good luck to all and note that my opinion and analysis could be wrong and therefore should not be relied upon nor considered as advice of any kind. Please DYOR.

    Cheers
    Elpha
 
watchlist Created with Sketch. Add SLR (ASX) to my watchlist
(20min delay)
Last
$1.24
Change
0.050(4.20%)
Mkt cap ! $1.159B
Open High Low Value Volume
$1.22 $1.24 $1.21 $5.420M 4.417M

Buyers (Bids)

No. Vol. Price($)
6 98076 $1.24
 

Sellers (Offers)

Price($) Vol. No.
$1.24 56726 5
View Market Depth
Last trade - 16.10pm 28/03/2024 (20 minute delay) ?
Last
$1.24
  Change
0.050 ( 3.36 %)
Open High Low Volume
$1.22 $1.24 $1.21 1124427
Last updated 15.59pm 28/03/2024 ?
SLR (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.