Silver Lake Resources Limited (SLR)



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General Information
Company Name: Silver Lake Resources Limited
Stock Code: SLR
Website: www.silverlakeresources.com.au
GICS Sub-Industry: Gold
Market Cap ($M): 96
Equiv. Shares (M): 503

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 0.190 $ 0.200 $ 0.210 $ 0.190 $ 0.200 27,397,583 $ -0.010  -5.000 %

Current Broker Consensus Recommendation more
Recommendation: Strong Sell (5)
Recommendation Date: 18th Dec 2014
Brokers Surveyed: 1

Company Overview

Business Description:
Silver Lake Resources Limited (SLR) is a gold producing and exploration company with resources in the prospective regions in Western Australia. The flagship projects are Mount Monger, Murchison and Great Southern Projects.

Strategy Analysis:
SLR's strategy is to develop large production centres at Mount Monger and the Murchison with multiple mines at each centre. SLR's Mount Monger Operation contains the Daisy Milano and Daisy East underground mines located 50km southeast of Kalgoorlie. Mount Monger has additional multi mine potential underpinned by emerging open pit production from Costello, Magic, Wombola Dam and Wombola Pit. Furthermore, the discoveries of Emma and extensions to Rosemary and Haoma show potential as near term production sources. Silver Lake Resources reported NPAT down 70% to $5.13m for the half-year ended 31 December 2012. Despite higher volumes mined and milled at lower grades compared to the previous corresponding period, the average gross profit margins and unit cost of sales have been maintained. However, the profit was reduced due to the inclusion of $15.35m of business combination expenses relating to the Integra acquisition. Non-cash transactions affecting profit during the period included depreciation and amortisation of $9.58m (2011: $7.14m) and impairment adjustments of $2.0m (2011: $80,000). Revenues from ordinary activities were $85.61m, up 26.6% from the same period last year. Diluted EPS was 2.19 cents compared to 8.46 cents last year. Net operating cash flow was $35.78m compared to $33.35m last year. No dividend was declared.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F -- 2.2 16.1 8.5 -- 0.0 --
2015  F -- 1.9 -- 9.8 -- 0.0 --
2014  A -115.6 -25.8 -- 0.0 0.0 0.0 --
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Newcrest Mining (NCM) $8,240 M -0.0429 -0.2819 0.4502 19.0738 26.5629 18.3166 0.00 0.00 1.84
Northern Star Resources (NST) $752 M 0.2151 2.1072 0.1689 15.8354 5.0963 4.3598 2.76 2.91 3.46
OZ Minerals (OZL) $1,056 M -- -- 0.2932 -- 76.1488 58.8832 5.75 5.75 3.95
Regis Resources (RRL) $820 M -- -- 0.8336 -- 12.5767 6.8591 0.00 NaN 6.75
Silver Lake Resources (SLR) $101 M -- -- 0.1606 -- 10.3627 8.9286 0.00 0.00 0.00

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
SLR 0.58 -- 0.35 -- 0.28
Market 0.90 15.0 1.19 1.94 1.48
Sector 0.62 11.5 0.69 1.26 2.40

Directors
Name Position Start Date
Mr Luke Tonkin Managing Director 14 October 2013
Les Davis Non Executive Director 25 May 2007
Mr Paul Chapman Non-Executive Chairman 20 April 2004
Mr Peter B Johnston Non-Executive Director 25 May 2007
Mr Brian Anthony Kennedy Non-Executive Director 20 April 2004
David Griffiths Non-Executive Director 25 May 2007

Management
Name Position
Robert Humphryson Chief Operating Officer
Peter Armstrong Company Secretary
David Berg Joint Company Secretary

Substantial Shareholders
Holding Name
75,263,605 (14.96%) Van Eck Associates Corporation

Calendar of Events
Date Event
27 October 2015 Report (Quarterly)
16 October 2015 Report (Annual)
28 August 2015 Report (Prelim)
24 July 2015 Report (Quarterly)
15 April 2015 Report (Quarterly)
26 February 2015 Report (Interim)
22 January 2015 Report (Quarterly)
19 January 2015 Report (Quarterly)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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